Alaska Initiates Legal Action to Clear Way for Road Access to Little Squaw Gold's Chandalar Property.

SPOKANE, Wash. -- Little Squaw Gold Mining Company (OTCBB:LITS) is pleased to report the State of Alaska recently announced it has filed a lawsuit against the United States to quiet title to the state's right-of-way for the historic Coldfoot-Chandalar Lake Trail.

In a press release issued on April 11th, Governor Frank H. Murkowski stated, "As far back as 1906 this trail was used to access gold in the Chandalar area. Establishing clear title to the Coldfoot-Chandalar trail is key to preserving our statehood rights and critical to this administration's priority to open access across the state." In a taped news interview the Governor said, "This is a very important event for Alaska, and...the significance of this area is that it is a rich mining area." Audio access to Governor Murkowski's remarks and additional information on this action are available on the internet at: www.gov.state.ak.us/news.php?id=1665.

This action represents a re-assertion of traditional access rights across federal land gained at the time of statehood, and is intended to set a precedence for establishing the state's unrestricted right-of-way to more than 600 other similarly qualified historic trails within Alaska as established by Revised Federal Statute 2477. The Chandalar route was selected for a number of reasons, including:

--well documented historical usage

--current use for mining, hunting, subsistence and recreation purposes

--access to approximately two million acres of State land

--the route does not cross any environmental conservation units

--most of the route crosses State owned land

--it links Chandalar to the state highway road network

Dick Walters, President of Little Squaw Gold, commented, "The action by the State of Alaska to resolve title and right-of-way issues for road access into Chandalar is very good news for our company. If the State prevails, it would clear the way for possible construction of an all weather road to the Company's 15 square mile property in the historic Chandalar gold mining district. Road access to our property would have a dramatic positive impact on the development of any gold deposits we may find on our claims. We consider Alaska to be the most favorable jurisdiction in the United States for the development of mining projects, and this action by Governor Murkowski and the State of Alaska demonstrates the Governor's commitment to responsible resource development and creation of new jobs for Alaskans."

The Chandalar property is located approximately 190 miles north of Fairbanks and 48 miles northwest of Coldfoot, Alaska. It is currently accessible by winter ice road over the Coldfoot-Chandalar Lake Trail and by aircraft to airstrips located on the property. Little Squaw Gold conducted a limited field program on the Chandalar property in 2004 that identified six new gold-bearing quartz veins, bringing the total number of known high-grade gold-bearing veins and vein swarms on the Chandalar property to more than 30. The results of last summer's field exploration program were reported in the Company's press release dated November 15, 2004, and a detailed technical report of field work by an independent certified professional geologist is available on the Company's website at www.littlesquawgold.com.

Little Squaw Gold is planning an aggressive exploration program at Chandalar this coming field season, subject to the Company obtaining adequate financing. The program includes first time application of modern geological techniques as well as a drilling campaign. Exploration will focus on high-grade mesothermal gold-quartz vein targets already defined. Numerous geochemical soil sample anomalies believed to reflect hidden gold veins will also be evaluated. Potentially significant placer gold deposits are also known to exist on the Chandalar property. Additional information on Little Squaw Gold, its property and its plans may be found in the Company's 10-KSB report for 2004 that was recently filed with the SEC, which is available through the Company's website.

James Duff, Chairman of Little Squaw Gold Mining Company, and Richard Walters, President, are the responsible parties for this news release. For further information please contact Richard Walters at [phone], or [e-mail].