Golconda Resources Ltd. - Drilling Update On Lone Peak Gold Prospect.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--May 30, 2002

Golconda Resources Ltd.(CDNX:GA) has completed the first phase of its ongoing drilling program at the Lone Peak Prospect near Cranbrook, B.C.

In 2001 Golconda acquired an option to purchase 90 percent of the property for staged payments of 200,000 shares and 2 percent royalty.

Last year a mapping and prospecting program followed the Spar Lake Horizon, a quartzite which contains large copper - silver mineralized zones in Montana and Idaho.

At Lone Peak the quartzite has a thickness of over 20m and exploration confirmed that for a strike length of about one kilometer, this zone contains not only copper - silver but also an overprint of stockwork quartz veining with visible gold. In order to drill this area Golconda has to build a 1 km drill road. The permit has just been granted and the road construction will start immediately.

Golconda has drilled so far five core holes at distances of 1 km and 2 km from the mineralized outcrops. The drilling in the first four holes showed widespread anomalous copper-lead-gold mineralization in vastly different rocks indicating a large system. A syenite plug with copper-lead and visible gold occurs at a distance of 5km and syenite veins found on the property led to the conclusion that a similar plug at depth is responsible for our gold-copper mineralization.

Hole 5 has been drilled to a depth of 538 m (1,765 ft). It is situated about 1 km (3,000 ft) from the outcropping mineralization and was drilled to intersect the structure which is thought to have channeled the mineralization. After encountering 60m (190 ft) of overburden the hole encountered fine-grained sediments with quartz carbonate veining and thin carbonatite dikes. From 356 m (1,170 ft) to 466m (1,530 ft) the drill hole intersected a massive dike of carbonatitic appearance. This is followed by sediments with thin carbonatite dikes to the end of the hole at 538 m (1,765 ft). Carbonatites are plutonic rocks from great depth and occur with syenitic intrusions and amongst more exotic minerals can also carry copper-silver and gold. Copper and lead sulphides can be observed throughout the hole but are more prominent in the carbonatite. It is assumed that the carbonatite is the source rock for the mineralization encountered in the Spar Lake Horizon. The samples will be sent for assaying. The drilling of the outcropping gold, copper and silver mineralization will start immediately after the road has been built.

On behalf of Golconda Resources Ltd.

Guenter J. Liedtke,

President

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