Stikine Gold Corporation
TSX VENTURE : SKY

Stikine Gold Corporation

December 12, 2006 19:31 ET

Stikine Gold Corporation: Sullivan Deeps SD3 Drilling Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 12, 2006) - Stikine Gold Corporation (TSX VENTURE:SKY) ("Stikine" or the "Company") announces that diamond drilling of its third exploration hole at the Sullivan Deeps Project recently reached a depth of 1,179 metres (3,868 feet).

Project Manager, Paul Ransom, P.Geo., a Qualified Person under NI 43-101, has reported the intersection of various marker horizons and geologic units at anticipated depths, the most recent being the 'Mark' Marker at a depth of 1080m.

Over the past few weeks additional time and effort has been spent in an attempt to deal with an obstruction in the drillhole. To solve the problem, the drill contractor has cut the rods at 1050 metres, placed a plug and cemented above the obstruction. A wedge will be set and normal coring operations will resume in early January after a holiday break for the drill crews. The Company will continue to provide depth and marker updates after drilling resumes in January as the SD3 drill hole progresses to target.

The SD3 drill program is a continuation of Stikine's exploration for a sister deposit to the legendary Sullivan Mine, located near Kimberley, BC which operated for nearly a century until closing in late 2001. According to the Province of British Columbia, the Sullivan Mine produced approximately 17.5 billion lbs of zinc (Zn), 18.5 billion lbs of lead (Pb) and 298 million ozs of silver (Ag) along with other associated metals. Using current metal prices, Sullivan life-of-mine production would be valued at over US$50 billion.

STIKINE GOLD CORPORATION

Scott E. Broughton, P.Eng. - President & CEO


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