August 01, 2006 13:57 ET

Sulliden Exploration Inc.: Court Orders the Enforcement of Arbitration Decision

MONTREAL, QUEBEC--(CCNMatthews - Aug. 1, 2006) - Sulliden Exploration Inc. (TSX:SUE) (Sulliden) reports that its wholly owned peruvian subsidiary, Minera Sulliden Shahuindo S.A.C., has obtained an injunction from the Civil Court of Lima ordering Minera Algamarca S.A. and Exploraciones Algamarca S.A. (the Algamarcas) to comply with the Decision rendered by the Arbitration Tribunal in the dispute concerning the Transfer Agreement relating to the Shahuindo property.

In the injunction, the Court :

- Orders Cia. Minera Algamarcas and Cia. Exploraciones Algamarcas
(herein after "the Algamarcas"), or any third party that could have
acquire any rights from them, to restore to Sulliden the possession
of the mining concessions, the superficial lands and any other
assets corresponding to the "Shahuindo Property". The Judge
expressly mandates that said restitution must be executed and
carried out against any one that is actually in possession of the
above mentioned properties and assets, including any third party
that has not been part of the arbitration process.

- Orders the Algamarcas, or any third party that could have acquired
any rights from them, to abstain from carrying out any act that
limits, impedes or hinders the right of Sulliden to exercise any
mining activity in the Shahuindo Property, acquired under the terms
of the transfer agreement dated November 11, 2002 (herein after the
Transfer Agreement). The Judge express mandate includes the
abstention to exercise any act that impedes the execution of all
the claims granted by this injunction as well as any act after said
injunction is fully executed.

- Orders the registration of the transfer agreement in the Trujillo
Mining Registry and in the Cajamarca Property Registry of the 20
mining concessions and 19 superficial lands corresponding to the
"Shahuindo Property" detailed in the Resolution. This means the
registration under Sulliden's name of all the above mentioned

- Orders retention for the amount of US $ 750,000 against the
Judicial Deposit Certificate (JDC) No 2003000305192 in custody of
the Judge of the 59 Civil Court of Lima, ordering the notification
to said Judge to execute said retention. (The JDC contains the US$
4,000,000 paid by Sulliden in favour of the Algamarcas as balance
for the transfer of the Shahuindo Property).

Commenting on the Court Injunction, Jacques Trottier, President of Sulliden, said "As mentioned in our Press Release of July 24th 206, Sulliden is taking all steps necessary to obtain possession and occupation of the Shahuindo Property and to have the mining concessions and surface lands registered in Minera Sulliden Shahuindo S.A.C.'s name in order to resume exploration and development activities following Peruvian laws and regulations as soon as possible on this fantastic property."

Sulliden Exploration Inc. is a mineral exploration company focused on the development of its 100% interest in the Shahuindo gold-silver project located 25 km north of Alto Chicama and 70km south of Yanacocha in northern Peru. The resource stands at 1.5 million ounces of gold at an average grade of 0.85 g/t Au and 35.2 million ounces of silver at an average grade of 19.83 g/t Ag, for a total gold equivalent of 2.1 million ounces of gold at a current gold to silver ratio of 1:60. In addition, Sulliden has an option interest to acquire 66% of an adjacent 1,900 hectares known as the Vikingo concessions which brings the Company's land holdings in this exciting gold district to almost 10,000 hectares. In southern Peru, Sulliden, through a subsidiary, has entered into an option agreement to earn a 50% interest in the Torrine gold project with Aruntani SAC and affiliates.

Contact Information

  • Sulliden Exploration Inc.
    Mr. Jacques Trottier
    (514) 861-1953
    Sulliden Exploration Inc.
    Mr. Jim Coleman
    (403) 267-8373