June 22, 2005 10:19 ET

Sulliden Exploration Inc.: Supreme Court of Peru Recognizes Constitutional Autonomy and Jurisdiction of Arbitration Process

MONTREAL, QUEBEC--(CCNMatthews - June 22, 2005) -

Arbitration Tribunal requested to resume Arbitration Proceedings

Sulliden Exploration Inc. (TSX:SUE) is pleased to report that the Supreme Court of Peru, the highest judicial authority in the country, has ratified the contents and provisions of Article 139 (1) of the Constitution of Peru and has confirmed that the jurisdiction of the Arbitration Process has constitutional autonomy. The Supreme Court declared that, accordingly, an Arbitration Tribunal has constitutional autonomy (jurisdiction) to hear an arbitration case with no interference whatsoever by any other jurisdiction or court.

The Judgement of the Supreme Court, delivered June 15, 2005, overruled an earlier decision of the Judge of San Marcos issued in January 2005 which ordered the Arbitration Tribunal to suspend hearing the Arbitration Proceedings regarding the fulfillment of the Transfer Agreement of the Shahuindo mining property. Algamarca had obtained the order seeking to suspend the Arbitration Proceedings pending a decision of the Judge of San Marcos of a claim brought by Algamarca with regards to possession and occupation of part of the mining concessions and lands transferred to Sulliden.

In February 2005, the Arbitration Tribunal declared as inadmissible the order of the Judge of San Marcos to suspend the procedure and resolved to proceed with the Arbitration. At the request of Algamarca, the Judge of San Marcos raised the case to the Supreme Court. In its decision of June 15, 2005, the Supreme Court confirmed the decision of the Arbitration Tribunal and ruled the suspension of the procedure by the Judge of San Marcos as inadmissible and that the judge had exceeded his jurisdiction.

As a result of the Supreme Court's decision confirming the jurisdiction and autonomy of the Arbitration Process, Sulliden has now formally requested the Arbitration Tribunal to reconsider its recent decision (resolved by a two-to-one majority vote) (Resolution 162 dated May 26, 2005) suspending the Arbitration Hearing based on a separate order issued by the Judge of the District of Lima at the request of Algamarca. Sulliden has been advised that the decision of the Supreme Court serves as judicial precedence in similar cases and is therefore hopeful that the Arbitration Tribunal will recognize the Supreme Court ruling and resolve to resume the Arbitration Hearing as soon as possible.

Sulliden has already previously filed an appeal to the Superior Court to set aside the order of the Judge of the District of Lima (May 6, 2005) and will proceed with this appeal.

The important decision of the Supreme Court ratifying the constitutional autonomy of the Arbitration Process and overruling the competence and Suspension Order of the Judge of San Marcos should similarly apply to the measure issued by the Judge of the District of Lima. Sulliden is hopeful that its application to the Arbitration Tribunal to reconsider its decision of May 26, 2005 to suspend the Hearing, will be successful and that the Arbitration Hearing on the fulfillment of the Transfer Contract will resume and continue as soon as possible.

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 70 km south of Yanacocha in northern Peru. 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 entered into 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 2004 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
    (514) 861-1953
    Sulliden Exploration Inc.
    Donna Yoshimatsu
    VP Investor Relations
    (416) 362-8809