Little Squaw Gold Mining Company: Independent Technical Report Verifies Chandalar Gold Potential.

Business Editors

SPOKANE, Wash.--(BUSINESS WIRE)--May 3, 2004

State Starts Chandalar Road Action

Independent Director Appointed

Little Squaw Gold Mining Company (the "Company") (OTCBB:LITS) has received the Independent Technical Report on its Chandalar, Alaska mining property (see January 26, 2004 Press Release 1-04). The report is titled "Gold Deposits of the Chandalar Mining district, Northern Alaska: An Information Review and Recommendations". The Company commissioned Pacific Rim Geological Consultants, Inc. of Fairbanks, Alaska earlier this year to analyze its extensive database on the property and to produce a scientific report on their independent findings.

The report is co-authored by Thomas K. Bundtzen and James C. Barker. Mr. Bundtzen previously served 22 years as Senior Economic Geologist for the Alaska Department of Natural Resources, and in that position he mapped and sampled some of the underground mine workings at Chandalar. He is currently president of the Alaska Miners Association. Mr. Barker previously served 17 years as Supervisor of the Fairbanks office of the U.S. Bureau of Mines, and became familiar with the Chandalar property through that position. He is an Alaska licensed Certified Professional Geologist. Together they studied data from more than 145 public sector and private industry reports and documents that describe the geology and mineral deposits of the Chandalar Mining district, making the following principal conclusions and recommendations:

Key conclusion on Lodes -- "After reviewing available geological, mineralogical, structural, tectonic, isotopic, fluid inclusion, and geochemical criteria, the authors conclude that lode gold mineralization in the Chandalar Mining district is orogenic, mesothermal, low-sulfide deposits hosted in shear zones that have strike lengths of at least four miles, widths of up to 400 feet, and vertical extents of at least 1,600 feet. The orogenic, mesothermal, low-sulfide gold deposits of the Chandalar district compare with worldwide examples that carry grades of 0.07-to-0.25 oz/ton gold over large widths, and strike lengths. Individual mesothermal gold deposits worldwide range from 1,500 tons to greater than 100 million tons of ore and many deposits contain resources of one million ounces or more of gold. In the Chandalar Mining district, there are at least four, parallel, quartz-sulfide-vein-and-shear zone structures that control the past productive Mikado, Eneveloe, Summit, and Little Squaw gold deposits, and more than 20 additional lode gold prospects, the latter of which have received very little exploration work."

Main recommendation for Lodes -- "Explore the potential for bulk mineable tonnage deposit(s), based on including lenses of multi-ounce gold quartz veins with auriferous splays and sub-parallel, sheeted quartz vein systems."

Primary conclusion on Placers -- "The geological setting of several of the Chandalar Mining district placer deposits can be compared to the glaciofluvial deposits in the Valdez Creek (south-central Alaska), Porcupine (southeast Alaska), Koyukuk-Nolan (northern Alaska) and the Bolotny-Ravkosky (Russian Far East) placer gold districts. Three out of four of these district examples have cumulative reserve and past production totals exceeding 500,000 ounces of gold."

Leading recommendation for Placers -- "Explore and develop as warranted a gold placer operation capable of producing 15,000 to 25,000 ounces of gold per year. A target in Lower Big and Little Squaw Creek valleys may contain 300,000 ounces of gold."

The Company believes this Independent Technical Report offers a scientific basis that verifies the high quality of its Chandalar property as an exploratory gold prospect that could well contain a major gold deposit. It also intends to raise capital needed to accomplish the detailed recommendations contained in the report. The authors recommend an initial 1.5 million dollar work program that would jointly target a first phase appraisal of both the placer and lode gold deposits. The entire report will soon be available to the public via the company's web site, currently under construction.

In other related news, on March 17th the State of Alaska filed notice of its intent with the U.S. Secretary of the Interior to bring a quiet title action for the purpose of determining the State's asserted right to turn the historic winter trail leading into Chandalar into an access road. The federal government has until October to agree to a right-of-way disclaimer. If the federal government does not respond or agree to the disclaimer, then the State has the right to file a lawsuit to gain clear right-of-way title. Conversion of this winter trail, known as RST 009, into an all weather road linked to the rest of Alaska's highway system would have a substantial positive economic impact on development of the Company's gold property.

The Company is also pleased to announce that Kenneth Eickerman has been appointed to its Board of Directors, and welcomes him and the talents he brings to Little Squaw. Mr. Eickerman is an independent director who now also chairs the Audit Committee of the Board, and acts as its financial expert. He is a Certified Public Accountant with substantial experience as a Controller, Treasurer and Manager of Operations Accounting for producing gold mining companies. He is currently Vice President and Controller Mustang Line Contractors, Inc., a company that builds electric transmission lines.