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Sulliden Gold Intersects 3.02 G/T Gold over 7.5 Metres at Shahuindo Gold Project

Sulliden Gold Corporation Ltd. (TSX:SUE) (OTCQX:SDDDF) has announced additional positive results from 22 new drill intersections conducted along the Central Corridor of the Shahuindo Gold Project located in northern Peru.

These results continue to indicate strong mineral resource growth potential along its currently defined 3.8 kilometer strike length and the deposit still remains open along strike, laterally and at depth. Calculation of a new National Instrument 43-101 ("NI 43-101") resource estimate is currently underway, and is expected for completion in Q1, 2011.

Significant intercepts from this group of exploration results are highlighted below. An economic cut-off grade of 0.17 g/t in gold oxides was established by AMEC in the NI 43-101 study (see news release of December 8, 2009).

  • 2.12 g/t Gold over 88.1 metres in hole SHM10-121 in the Central Zone (This larger PQ size hole was drilled for metallurgical purposes)

  • 0.94 g/t Gold over 119.1 metres including 1.23 g/t Gold over 78.8 metres in hole SH10-143 in the Central Zone

  • 0.54 g/t Gold over 115.5 metres including 1.01 g/t Gold over 24 meters in hole RSH10-92 in the Central Zone

  • 1.24 g/t Gold over 48.0 metres including 3.02 g/t Gold over 7.5 metres, and 0.72 g/t Gold over 55.5 metres including 1.05 g/t Gold over 24.0 m in hole RSH10-86 in the Moyan Alto Zone

Stephane Amireault, Vice-President of Exploration for Sulliden, commented, "The results from this exploration program have been very encouraging. Drilling on Shahuindo continues to define new mineral continuity that has expanded both the width and length of the Central Corridor. We are looking forward to commencing our 2011 exploration program, which will include several new target areas that could represent significant new mineral growth at Shahuindo."

A 30,000 meter exploration program was initiated in August 2010, following the award of a project-wide exploration permit (See news release dated July 20, 2010). Sulliden has completed over 30,000 meters of drilling on Shahuindo since the program was initiated and intends to continue drilling activity on the site for an additional week. The Company is also beginning to prepare for its 2011 exploration program, announced on December 7, 2010, including approximately 70,000 metres of drilling that will nearly double the number of metres drilled on Shahuindo since its discovery in 1992. The new program will continue targeting the Central Corridor to further expand the current mineralized envelopes, but will also include new target areas that are designed to identify new potential mineral resources on Shahuindo.

Summary of Recent Results

Results from 22 new drill holes represent approximately 5,300 metres of the 30,000 metre exploration program initiated last August. The selected sections 700E and 1350E graphically demonstrate the newly identified mineralization in purple being added to the existing red mineral envelopes in the Central and Moyan Alto zones.

The new grade shells highlighted in the sections above are geological interpretations that are preliminary in nature.

QUALITY CONTROL AND ASSURANCE

Stéphane Amireault, P.Eng., Vice President Exploration for Sulliden is the Qualified Person responsible for the management of the exploration program and disclosure of the drill results as defined by National Instrument 43-101. Mr. Amireault has read and approved the technical and scientific information in this news release.

The analyses for this drilling campaign were carried out by ALS Chemex in Lima, Peru and ALS Chemex in Reno, Nevada (holes SHM10-121 and SHM10-124) exercising a thorough Quality Control and Assurance program (QA/QC). All ALS Chemex labs are ISO 9000 registered laboratories. All gold assays reported in the press release were obtained by standard 50g fire assaying with AA finish. All silver assays reported in the press release were obtained by Aqua-Regia dissolution followed by ICP-AES measurement.

Source:

Sulliden Gold Corporation Ltd.

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