Little Squaw Gold Mining Company
OTC Bulletin Board : LITS

Little Squaw Gold Mining Company

April 03, 2006 07:00 ET

Little Squaw Launches Chandalar Gold Exploration

SPOKANE, WASHINGTON--(CCNMatthews - April 3, 2006) - Little Squaw Gold Mining Company (OTCBB:LITS) ("Little Squaw" or "the Company") has initiated its 2006 exploration program on its Chandalar, Alaska gold property, located in the heart of an historic high-grade gold mining district some 200 miles north of Fairbanks, Alaska. The planned program includes more than 10,000 feet of drilling in 30 or more holes on at least 10 gold prospects where the Company has previously established the presence of rich gold values.

The comprehensive $1.7 million program is fully funded, and includes various wide-ranging technical surveys in addition to the drilling. The Chandalar gold mining district has never before been subjected to a holistic exploration approach using modern techniques. Until now, fewer than a score of drill holes have been made, all done more than 25 years ago, leaving the Company's large property, which covers most of the district, essentially untested.

In keeping with the program's time table, machinery, camp construction materials and supplies were recently "cat trained" over a winter haulage route to a site on the Company's Chandalar mining claims. Nearly half a million dollars worth of equipment, materials and services were purchased, and then trucked to the Coldfoot jump-off point on the Dalton Highway. From there, bulldozers, snow cats and sleds moved the 67 tons of cargo about 70 miles over an historic miner's trail to the property. The State of Alaska is trying to clear the access right-of-way to this same trail for possible future road development (see the Company's press releases of April 18, 2005 and March 31, 2006).

Jim Barker, Chandalar Project Manager, commented: "This operation was a major logistical accomplishment, moving so much gear and equipment overland in arctic winter conditions - but we managed it virtually without incident."

The Company now has the vital machinery and supplies in place to support its upcoming summer gold exploration program, scheduled to begin after "spring break-up" in late May.

Bob Pate, Vice President of Little Squaw, said: "Now we have the horsepower in place to support and upgrade existing field infrastructure, particularly roads and airfields, which will enable us to move forward aggressively with our gold prospecting and drilling programs".

In addition to this first phase of mobilization, the Company has secured a contract with an Anchorage-based drilling services firm to provide 10,000 feet of reverse circulation drilling on the Chandalar property this summer. The Company is also busy setting up the rest of the project's support structure, including obtaining all necessary state permits, and various contracts for sampling, assaying, geologic mapping, camp catering, and aerial services.

Dick Walters, President of Little Squaw, quipped: "We are not only excited about launching a full-fledged exploration program in an area where we have already seen a lot of gold, but this summer at Chandalar is also going to be the sort of true frontier adventure like the gold rush that established Alaska."

About the Company: Little Squaw Gold Mining Company (OTCBB:LITS), is a 47 year-old, publicly-traded junior mining company with new management, an infusion of capital, and a new vision going forward. The Company is committed to exploring and developing gold deposits on its wholly-owned Chandalar mining property in Alaska. Information on the Company, its Chandalar property and the gold showings thereon is available on the Company's website at www.littlesquawgold.com. Additional information on the Company and its plans may be found in the Company's SEC filings, specifically its Form 10-KSB/A annual report for 2005, which can also be accessed through the Company's website.

Richard Walters, President, and Susan Schenk, Manager of Investor Relations of Little Squaw Gold Mining Company are responsible for this news release.

Cautionary Note Regarding Forward-Looking Information -- Information set forth in this press release involves forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's control, including: the Company's plans to upgrade infrastructure and initiate or complete exploration drilling on the Chandalar property, the timing in which they may be accomplished, the anticipated results of the Company's exploration program and the Company's ability to file SEC forms in a timely manner. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company's actual results, programs and financial position could differ materially from those expressed in or implied by these forward-looking statements.

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