May 23, 2007

NEWS RELEASE

Golconda Resources Ltd. announces that it intends to make a private placement of 1, 500,000 units at a price of $0.20 per unit, for proceeds of $300,000. Each unit consists of one common share of Golconda and one non-transferrable common share purchase warrant.

Each warrant will allow the subscriber to purchase one common share of Golconda at $0.25 for a period of twelve (12) months from issuance.

The proceeds from this private placement, which is subject to regulatory approval, will be used for working capital and for drilling on Golconda’s Nevada Gold and Silver Projects.

Insiders may subscribe for up to 25% in the private placement.

On behalf of Golconda Resources Ltd.,

Guenter J. Liedtke,

President