Telkwa Gold Corporation
TSX VENTURE : TKW

Telkwa Gold Corporation

December 19, 2006 14:14 ET

Telkwa Completes Initial Drilling Phase and Appoints Investor Relation Firm

CALGARY, ALBERTA--(CCNMatthews - Dec. 19, 2006) - Telkwa Gold Corporation (TSX VENTURE:TKW) is pleased to announce that the initial phase of drilling on our Buckskin North property in Nevada has been completed with drill hole B-3 and selected core samples have been delivered to the laboratory for analysis.

Telkwa's 100% controlled "Buckskin North" property is located approximately 10 miles Northwest of Yerington, Nevada and 45 miles Southeast of Reno, Nevada. The gold occurrence at "Buckskin North" was first recognized visually in 1974 during logging of the hole (D-314) and the three foot interval assayed 540 ppm gold (15.75 oz/t). This high grade interval was within an interval of 16 ft of 2.76 oz/t gold. During that time, the Anaconda Copper Company drilled a total of five widely spaced holes and three deflections to confirm gold mineralization over 2500 feet along the apparent strike of the trend.

On the "Iron Cap" property, which lies about 2 miles east of the "Buckskin North" property, the previously announced short program of prospecting, mapping and extending the soil grid has been completed and the samples are in the laboratory for analysis. These results will help define a number potential drill targets.

The Company would also like to take this opportunity to report that it has engaged Sutherland Communications Inc. of Toronto Ontario, to perform investor relations services on behalf of the company. Sutherland Communications, will assist in facilitating increased company awareness and exposure to current shareholders and potential investors through the dissemination of corporate information to a network of institutions, retail brokerage firms and private investors in Canada, the United States and Europe.

In consideration for its services to the company, Sutherland Communications will be paid a consulting fee of $5,000 per month of a term of 12 months. In addition, the company has granted incentive stock options to purchase up to 500,000 common shares in the capital stock of the company set at $0.10 cents per share, vesting over 12 months and expiring in three years to Sutherland Communications, all of which is subject to exchange approval.

Telkwa Gold Corporation's current exploration focus is Nevada where it has four properties and it also has two exploration properties located in British Columbia. Telkwa maintains its website www.telkwagold.com with corporate information, reports and images of our exploration projects.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

This news release is not for dissemination in the United States or to any United States new service, and does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction. The common shares of Telkwa Gold Corp will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States, or to a U.S. person, absent registration or applicable exemption therefrom.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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