Little Squaw Gold Mining Company
OTC Bulletin Board : LITS

Little Squaw Gold Mining Company

March 31, 2006 09:25 ET

Little Squaw Provides Update on Chandalar Road Access

SPOKANE, WASHINGTON--(CCNMatthews - March 31, 2006) - Little Squaw Gold Mining Company (OTCBB:LITS) ("Little Squaw" or "the Company") reports that progress has been made towards resolution of the State of Alaska's lawsuit to gain clear rights-of-way access into the Chandalar area, where the Company is exploring its promising gold property. It is now believed that, if a settlement is not reached in the interim, a trial will be held to determine the issue in the spring of 2007.

On April 11, 2005 the State of Alaska (the plaintiff) filed a lawsuit against the United States and sixteen companies and individuals (the defendants) to gain quiet title to the state's rights-of-way for the historic Coldfoot to Chandalar Lake Trail. The importance of this issue was underscored by Alaska Governor Frank Murkowski when he took a dog sled ride over the trail the same day the suit was launched.

"As far back as 1906 this trail was used to access gold in the Chandalar area," Governor Murkowski noted. "As such, the trail is one of many rights-of-way under federal law located within Alaska. Establishing clear title to these historical routes, including the Coldfoot-Chandalar trail, is key to preserving our statehood rights and critical to this administration's priority to open access across the state."

Current access to the Company's Chandalar property is either by winter ice trail over this route, or by aircraft to airstrips located on the property. If the plaintiff succeeds, it would open up the possibility of state funded road construction into two million acres of state land around the Company's Chandalar property. According to information coming from the state Attorney General's office, the State of Alaska has settled with 14 of the 17 defendants either by default or agreement. The principal defendant, the U.S. Secretary of the Interior, has not settled. Negotiations are proceeding.

Dick Walters, President of Little Squaw, commented: "All-weather road access to the Company's Chandalar gold property would dramatically enhance the economics of the exploration for and development of any gold deposits we may find on our claims, and securing the legal right-of-way for it is the all-important first step in achieving that."

On December 8, 2005 a U.S. District Court judge for the District of Alaska issued a Schedule and Planning Order for the pre-trial development of the case. It specifies a time table during 2006 for disclosure, states that all discovery must be completed by February 1, 2007, and any dispositive motions must be filed by March 2, 2007. After this period and once all dispositive motions have been ruled upon, a trial date will be set. It is expected that the case will require ten days for trial by jury.

The Chandalar gold mining district lies 70 miles north of the Arctic Circle and is situated within the south flank of the Brooks Range. It is about 190 air miles north of Fairbanks and 48 air miles east-northeast of Coldfoot, an important road traffic service center on the Dalton Highway. The Dalton Highway, which parallels the Trans Alaska Pipeline, is the only road to the Prudhoe Bay oil fields on Alaska's North Slope, and it is linked to the state's highway network. Current access to Chandalar is either by aircraft from Fairbanks, or overland during the winter season via a 55-mile-long trail from Coldfoot to Chandalar Lake. Multi-engine cargo aircraft can land at the state maintained 4,700 foot airfield at Chandalar Lake or at the Company's 3,700 foot Squaw Lake airstrip.

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 2004, 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 may involve forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond the Company's control, including the anticipated time table for resolution of Alaska's Coldfoot to Chandalar road right-of-way law suit and, if it were to prevail the possibility that the state of Alaska would follow up with any support for road construction. 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. Actual results could differ materially from those expressed in or implied by these forward-looking statements.

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