SULLIDEN EXPLORATION INC.
TSX : SUE

SULLIDEN EXPLORATION INC.

September 20, 2005 12:05 ET

Sulliden Exploration Inc.: Superior Court Revokes Injunction

MONTREAL, QUEBEC--(CCNMatthews - Sept. 20, 2005) -

Arbitration Tribunal expected to resume

Sulliden Exploration Inc. (TSX:SUE) is very pleased to report that the Superior Court of Lima has unanimously delivered its judgment to revoke the precautionary measure (injunction) that had temporarily suspended the Arbitration Process. This process had been established to resolve the ownership dispute regarding Sulliden's Shahuindo gold-silver property in Peru.

On June 8, 2005 Sulliden announced that the Arbitration Tribunal had voted to temporarily suspend the Arbitration Process, then in its final stage, after the issuance of a precautionary measure (injunction) on May 6, 2005 by the District Court of Villa Maria del Triunfo at the request of Algamarca. Algamarca raised this demand pending their legal challenge to have the Arbitration Process declared inapplicable and of no judicial effect. The Superior Court has now issued a unanimous decision with respect to the Arbitration Tribunal's appeal and has revoked the injunction.

In addition, the District Court of Villa Maria del Triunfo has considered Sulliden's application for a review on the basis of additional evidence and, by decision dated August 10, 2005 (delivered August 26, 2005), the District Court has rejected Algamarca's Petition to have the Arbitration Process declared inapplicable and of no judicial effect.

"We are very pleased with these two decisions from both the Superior Court in Lima and the District Court of Villa Maria del Triunfo which have removed this obstacle to the Arbitration Process", said Jacques Trottier, President & CEO of Sulliden.

With these decisions, and having regard to the Directive of the Supreme Court of Peru of July 12, 2005 supporting the constitutional autonomy of the Institution of Arbitration, the conditions have now been satisfied for the Arbitration Tribunal to resume the Arbitration Process following which a decision is expected to be forthcoming in the near future.

For further background on the litigation, please refer to 'Legal Proceedings' in the Company's Annual Information Form available on Sedar (www.Sedar.com).

Sulliden Exploration Inc. is a mineral exploration company focused on the development of precious mineral interests in Peru, including the Shahuindo project located 25 km north of Lagunas Norte and 70 km south of the Yanacocha district. An option interest to acquire 66% of an adjacent 1,900 hectares known as the Vikingo concessions brings the Company's land holdings in this exciting gold district to almost 10,000 hectares. In addition, Sulliden through a subsidiary has an option agreement to earn a 50% interest in the Torrine gold project with Aruntani SAC and affiliates in southern Peru.

Certain of the information contained in this news release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include without limitation, statements regarding estimates of reserves and resources, future plans and objectives, results of exploration, uncertainty with respect to changes in general economic or political conditions, title to properties, litigation, legislative, environmental and other judicial, regulatory and competitive developments in areas in which the Company operates. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Sulliden's expectations are disclosed under the heading "Risk Factors" in its 2005 Annual Report as well as in its Annual Information Form (AIF) both of which are filed with Canadian regulators on SEDAR.

Contact Information

  • Sulliden Exploration Inc.
    Mr. Jacques Trottier
    President
    (514) 861-1953
    sulliden@colba.net
    or
    Sulliden Exploration Inc.
    Donna Yoshimatsu
    VP Investor Relations
    (416) 362-8809
    dyoshi@sulliden.com