Supreme Court of Peru restores the Arbitration Award in Sulliden's favour

Sulliden Exploration Inc. (TSX: SUE) is very pleased to report that the Supreme Court of Peru has ruled in Sulliden's favour on the key appeal filed by Sulliden, and heard by the Supreme Court of Peru on November 13, 2008, in the legal dispute relating to Sulliden's ownership of the Shahuindo gold/silver property in Peru (See Sulliden's press releases dated October 24, 2008, November 14, 2008 and December 2, 2008).

The Supreme Court of Peru has accepted and allowed the appeal taken by Sulliden against the Decision of the Commercial Chamber of the Superior Court of Lima dated August 9, 2007, granting Algamarca's Nullity Petition against the Arbitration Decision of July 2006, which had declared that Sulliden had fully met the terms and obligations of the Transfer Contract dated November 6, 2002 and had properly acquired the Shahuindo property.

The Supreme Court has not yet issued its Reasons for Judgment, or its rulings or direction on the consequences of the Decision. However the effect of the Supreme Court Decision is to restore the Arbitration Award in Sulliden's favour and set aside the Decision of the Commercial Chamber of the Superior Court of Lima dated August 9, 2007, such that the Arbitration Decision in Sulliden's favour of July 2006 still applies and remains in full force and effect, together with the Injunction enforcing that Arbitration Decision granted in Sulliden's favour by the 55th Civil Court of Lima in July 2006.

The detailed resolution (decision), when issued by the Supreme Court, may refer the matter back to the jurisdiction of the Commercial Chamber of the Superior Court of Lima for any further action or process, if any, that Algamarca may decide to pursue.

On December 2, 2008 the Supreme Court reported that it had accepted Sulliden's appeal against the decision of the Superior Court of Cajamarca dated January 18, 2008, confirming the decision of the Civil Judge of San Marcos dated January 20, 2006, granting an injunction against certain officers of Sulliden from entering the Shahuindo property (see press release dated December 2, 2008).

A decision on the third appeal by Sulliden against the decision of the Superior Court of Lima dated May 9, 2007, which refused Sulliden's appeal against a resolution of the Registry Tribunal of the National Superintendente of Public Registers SUNARP (Peruvian Title Registry) rejecting the original registration of twenty of the Shahuindo mining concessions in Sulliden's name, is expected to be rendered shortly. All mining concessions were subsequently registered, and remain registered, in Sulliden's name. Sulliden pursued this appeal only to maintain the priority of its original registration.

Sulliden is gratified that the appeal on the Arbitration nullity has been resolved by the Supreme Court in Sulliden's favour. This continues the pattern where almost all of the issues on the merits and bona fides of the case, and most of the procedural issues, on the Shahuindo litigation, have to date been decided in Sulliden's favour.

Sulliden remains confident that the outcome of all processes and other parts of the Shahuindo litigation will be favorable to Sulliden. However, against the background of the most recent court rulings, Sulliden will seek to continue in negotiations with Algamarca on a possible settlement of the Shahuindo litigation and dispute. These negotiations have not yet resulted in a resolution and there can be no assurance that the negotiations will reach a satisfactory conclusion. As in any litigation where there is a dispute, Sulliden cannot predict with certainty the outcome of the negotiations or of the final resolution of the Shahuindo litigation.

A more detailed review of the background to the dispute and ongoing litigation may be found in Sulliden's Annual Information Form for the year ended April 30th, 2008, and in Management's Discussion and Analysis for the quarter ended October 30, 2008, and in Sulliden's Press Releases dated October 24, November 14, 2008 and December 2, 2008 are available on www.sedar.com.

For further information please contact Sulliden Exploration Inc. at (416) 703-8287 or via email at This email address is being protected from spambots. You need JavaScript enabled to view it..

Sulliden Exploration Inc. is a mineral exploration company focused on the development of its Shahuindo gold and silver Project. The Shahuindo project is located in northern Peru, in one of the world's most prospective gold and silver regions, sitting approximately 25 km north of Barrick's Laguanas Norte-Alto Chicama 1,100,000 oz/gold per year mine; 70 km south of Newmont's multi-million oz/gold Yanacocha district and 200 km north of Barrick's Pierina 650,000 oz/gold per year mine.

The Shahuindo resource stands at 38 million tonnes grading 0.95 g/t Au and 22.99 g/t Ag, containing 1.2 million oz of gold and 28 million oz of silver (equivalent to 1.6 million oz of gold at a gold to silver ratio of 1:60) in the Indicated Category; and 17.2 million tonnes grading 0.62 g/t Au and 12.83 g/t Ag, containing 342,000 oz of gold and 7 million oz of silver (equivalent to 460,000 oz of gold at a gold to silver ratio of 1:60) in the Inferred Category - (Resource Estimation - Met-Chem Canada Inc. April 2005 filed on www.sedar.com).

Sulliden's rights to the Shahuindo property are in dispute and are the subject of extensive litigation in Peru.

Caution regarding forward-looking information:

Statements contained in this document which are not historical facts are forward-looking statements that involve risk, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. This forward-looking information includes, or may be based upon, estimates, forecasts, and statements as to management's expectations with respect to, among other things, the outcome of legal proceedings, the issue of permits, the size and quality of the company's mineral resources, progress in development of mineral properties, future production and sales volumes, capital and mine production costs, demand and market outlook for metals, future metal prices and treatment and refining charges, and the financial results of the company. Factors that could cause such differences, without limiting the generality of the following, include: volatility and sensitivity to market metal prices; impact of change in foreign currency exchange rates and interest rates; imprecision in reserves estimates; environmental risks including increased regulatory burdens; unexpected geological conditions; adverse mining conditions; political risks arising from operating in developing countries; legal title to properties, outcome of litigation, changes in government regulations and policies, including laws and policies; and failure to obtain necessary permits and approvals from government authorities; and other development and operating risks.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that mineral resources will be converted into mineral reserves.

Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this document. The Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

SOURCE: Sulliden Exploration Inc.

John F. Kearney, President, Tel: (416) 703-8287, E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.; Craig Geier, VP & Chief Financial Officer, Tel: (416) 703-8287, E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.