September 11, 2009 09:31 ET

Sulliden Exploration Inc. Announces $20 Million Bought Deal

TORONTO, ONTARIO--(Marketwire - Sept. 11, 2009) -


Sulliden Exploration Inc. (TSX:SUE) (the "Company") is pleased to announce that it has entered into an agreement with Cormark Securities Inc. ("Cormark"), on behalf a syndicate of underwriters led by Cormark and including Macquarie Capital Markets Canada Ltd., Canaccord Capital Corporation, Fraser Mackenzie Limited Wellington West Capital Markets Inc., pursuant to which the underwriters have agreed to purchase 25 million units of the Company on a bought deal basis, at a price of $0.80 per unit for aggregate gross proceeds to the Company of approximately $20 million. Each Unit will consist of one common share (a "Common Share") and one-quarter of one common share purchase warrant (each whole purchase warrant, a "Warrant"). The Company will also grant to the Underwriters an option, exercisable at any time until 5:00 p.m. (Toronto time) on the 30th day following the closing, to purchase up to an additional 3,750,000 Units for additional aggregate proceeds of up to $3,000,000.

Each Warrant will entitle the holder to acquire one Common Share at a price of $1.00 for a period of two (2) years from closing. In the event that the Common Shares trade on the TSX at a volume weighted-average price of $1.50 or more for a period of at least twenty (20) consecutive trading days from that date which is 6 months following the closing, the Company shall be entitled to accelerate the exercise period to a period ending at least thirty (30) days from the date notice of such acceleration is provided to the holders of Warrants.

The Company will file a preliminary short form prospectus in each of the provinces of Canada for the purpose of qualifying the Units for distribution to the public on or before September 17, 2009 and the offering is scheduled to close on or about October 1, 2009. The offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and the securities regulatory authorities.

The proceeds of the offering will be used for exploration and in-fill drilling, feasibility studies and for general corporate purposes.

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

About Sulliden

Sulliden is a Canadian based mining company focused on the development and exploration of the Shahuindo Gold Project located in northern Peru, one of the world's most prolific gold and silver producing districts. World-class gold mines in the region include Barrick Gold's Lagunas Norte Mine, 30 km to the south, (1.2 million ounces of gold produced in 2008), and the Yanacocha Mine operated by Newmont Mining Company, 70 km to the north (1.8 million ounces of gold produced in 2008).

The Shahuindo Gold Project has a NI 43-101 compliant Mineral Resource Estimation completed by Met-Chem Canada Inc. in 2005 that estimates 38 million tonnes grading 0.95 grams per tonne of gold and 23 grams per tonne of silver of indicated resource (1.2 million ounces gold and 28 million ounce silver) and 17.2 million tonnes grading 0.62 grams per tonne of gold and 12.83 grams per tonne silver in the inferred category (342,000 ounces gold and 7.1 million ounces silver) (See Sulliden Press Release of April 29, 2005 for details regarding the resource estimate) In March 2009, the five-year legal dispute that disrupted the Shahuindo Gold Project was resolved. With the current resolution, Sulliden now holds 100 percent registered and undisputed ownership of the Shahuindo property and has secured exploration options on sixteen adjoining mining concessions.

In April 2009, the Board of Directors appointed a new Management team with the focus and ability to develop, finance and operate mining projects. With a strong strategic plan to advance the development of its Shahuindo Gold Project and potential for mineral resource expansion, Sulliden is positioned to generate superior value for its shareholders.

The Mineral Resource Estimation was completed by Met-Chem Canada Inc. in 2005 and is filed on

Peter Tagliamonte Stan Bharti
President and CEO Chairman

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