February 13, 2008

NEWS RELEASE

Drilling at Merger intersects 700ft of anomalous silver

Golconda Resources Ltd. has received assay results on the two diamond drillholes drilled on the Merger silver property in Nevada. The Merger mine, which is situated in the Bellehellen district about 50 miles east of Tonopah, produced about 450 000 ounces of silver before 1927.

A large soil geochemical anomaly, which also covers the Merger mine, runs east-west for 1.5km (4500ft) and is consistently 250m (800ft) wide. The westernmost 500m (1500ft) of the anomaly are covered by a silica stockwerk zone in welded tuff and shows, in addition to the silver, increased gold values. The eastern 1km (3000ft) of the anomaly is argillic-altered tuff and shows no gold values. Silver values at the eastern end of the anomaly however reach up to 20g Ag per tonne (0.60 oz Ag per ton).

In 1981 a diamond drillhole - KM-1 – was drilled at the transition between the silica and argillic alteration. This is also the area of the old workings. The hole, drilled to 756ft depth, averaged 1oz silver per ton from 395ft to the end of the hole.

Golconda drilled one hole, M-1, 30m (100ft) to the east of KM-1 and another hole, M-2, 10m (30ft) to the west of KM-1. Both holes failed to confirm the silver values reported from KM-1.

Golconda’s hole M-1, which was drilled in the argillic alteration, hit anomalous silver values of up to 13.6g Ag/tonne (0.40oz Ag/ton) from 95m (310ft) to the end of the hole at 308m (1010ft). Sulphides ranged from 1% to 5%. Hole M-2 intersected a silica stockwerk zone from 92m (300ft) to 247m (810ft). Sulphides were much lower and gold-silver values were low and sporadic.

A seven hundred feet thick zone of argillic alteration, high sulphides and anomalous silver values encountered in hole M-1 at the very beginning of the 1km (3000ft) long and 245m (800ft) wide soil geochemical anomaly, is highly prospective. This zone contains the highest silver values in the soil at a distance of 1km (300ft) from the drillhole, giving it the potential to contain a large silver deposit. A new drill program will test the eastern part of the argillic –altered anomalous zone.

Samples were analysed by ALS Chemex Laboratories of Vancouver, B.C. Golconda’s CEO Guenter J. Liedtke, P.Geol. is the designated qualified person for the purposes of National Instrument NI 43-101 Standards of Disclosure.