June 08, 2005 18:04 ET

Sulliden Exploration Inc.: Unusual Legal Measure Temporarily Suspends Arbitration Process for Shahuindo

MONTREAL, QUEBEC--(CCNMatthews - June 8, 2005) - Sulliden Exploration Inc. (TSX:SUE) reports that the arbitration process duly constituted under the laws and Constitution of Peru to decide the validity of the sales contract for the Shahuindo property to Sulliden, has been temporarily suspended after the issuance of an unusual and unconventional injunction by a district judge of Lima, at the request of Algamarca.

The Arbitration Tribunal was duly constituted and declared competent under the laws of the Peruvian Constitution to resolve the dispute between Sulliden and Algamarca over the validity of the sales contract transacted and recorded in the Public Registry in November, 2002. Since that time, Algamarca was acquired by ATTIMSA, who has attempted to renege on the contract after the fact, using various illegal means and failing to comply with the Peruvian judicial system.

Notwithstanding the fact that the Constitution of Peru recognizes and defends the Institution of Arbitration prohibiting the interference by any other juridical entity, each member of the Arbitration Tribunal - presided over by Dr. Jorge Santistevan (the first Ombudsman and Defender of the People in Peru) including Dr. Victor Avila and Dr. Fernando Cantuarias - has been subjected to a highly unusual penal lawsuit launched by Algamarca.

Despite the decision of the President of the Tribunal to vote against the order of suspension and proceed with the arbitration process, the other two arbitrators have conceded to the pressures of the penal suit. This matter has been appealed by both parties (the Company and the Arbitration Tribunal) and is now before the Superior Court of Lima to revoke the measure of suspension before a final arbitration decision can be made. The Company cannot speculate on the timeframe for this procedure.

Sulliden, for its part, has complied with all legal requirements from the original sales agreement with Algamarca in 2002, through subsequent favorable rulings dismissing illegal injunctions and other procedures, and throughout the lengthy arbitration process, acting in good faith and in full accordance with Peruvian mining and Constitutional law. The Company will keep its shareholders apprised of developments as they evolve.

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