Sultan Minerals

Thursday, January 08, 2009

TSX Venture Exchange Symbol: SUL
SEC 12g3-2(b): 82-4741
Frankfurt Stock Exchange: RZN

Sultan Minerals - Focusing On Metals Unaffected By The Commodities Crunch

Vancouver, BC - Sultan Minerals Inc. (SUL-TSX-Venture) ("Sultan") is pleased to provide its shareholders with an annual project update and a summary of its plans for 2009.

In 2008 Sultan focused on the exploration of its Jersey-Emerald Tungsten and Kena Gold properties. Both commodities tungsten and gold have been relatively unaffected by the recent commodities crunch.

Jersey-Emerald Property:

The historic Jersey-Emerald tungsten and lead-zinc mine was formerly owned and operated by Placer Dome. The property was Canada's second largest tungsten producer and British Columbia's second largest lead-zinc mine. Subsequent exploration work by Sultan has identified substantial deposits of tungsten, lead-zinc and molybdenum mineralization. A NI 43-101 compliant scoping study was completed in May 2007. Highlights of the study include:

• A measured and indicated tungsten resource of 2.51 million tons averaging 0.37% tungsten (WO3) and an additional inferred resource of 1.21 million tons averaging 0.40% WO3, both at a cut off grade of 0.15% WO3.
• The Jersey-Emerald Tungsten deposits could support a potentially commercial 1,100 t/day mining operation at current prices and current reserves.
• The economics of the operation would be substantially improved by expanding the tungsten resource with additional diamond drilling in order to justify a 2,000 t/day operation.

Since that study, Sultan has completed approximately 20,000 metres of diamond drilling in 87 diamond drill holes and an updated tungsten resource estimate is expected to be available in early January.

In September 2008, Sultan participated with Geoscience BC in a $542,000 Airborne Geophysical Survey centered on Sultan's 93-square kilometre Jersey-Emerald Property. The survey will provide information about the rocks deep underground and is expected to identify new exploration targets well beyond the limits of the seven historic mines on Sultan's extensive property. Results of the survey are expected to be available in the spring of 2009.

In December 2008 Sultan received a report on a 12-month aquatic environmental baseline study of its Jersey-Emerald property completed by Wardrop Engineering. The report notes that:

1. There is no clear indication that the old Jersey--Emerald mine site is affecting the aquatic habitat downstream of the mine workings.
2. Lime Creek, which drains the historic mine site, does not support a fish community and is therefore not a direct fish habitat.

Recent exploration shows there is good potential for additional new discoveries on the Jersey--Emerald property. In November 2008, a program of trenching and surface prospecting was completed over a large tungsten and lead-zinc soil anomaly discovered 3.0 km south of the historic mine. Assays are pending and are expected shortly.

Kena Gold Property:

The 8,000-hectare Kena Gold Property is located in southeastern British Columbia, 60 kilometres northeast of the historic Rossland Mining Camp, BC's second largest gold camp. Some highlights of the property include:

• The Kena Property centres on an 8.0 km long gold-copper soil geochemical anomaly which encompasses the Gold Mountain and Kena Gold Zones.
• The two deposits have been partially tested with 16,500 metres of drilling in 116 diamond drill holes.
• A preliminary, NI 43-101 compliant, resource estimate (June 7, 2004) shows the two zones have a combined measured and indicated resource of 24,860,000 tonnes, containing 541,000 ounces of gold at an average grade of 0.66 g/T gold and an additional inferred resource of 25,800,000 tonnes containing 557,000 ounces of gold at the same grade. (Using a 0.3 g/T cut-off grade for gold.)
• The report recommends additional drilling to expand the gold resources which are open along strike and at depth. Preliminary metallurgical testing shows excellent gold recoveries.

In February 2008 Sultan completed a deep hole on the Gold Mountain Zone showing that gold mineralization extends from surface to a depth of 435.3 metres (1,428 feet), well below any previous drill intersections. The results suggest that the Gold Mountain Zone and presumably also the Kena Gold Zone which were previously drilled to less than 240 metres depth may extend to much greater depths and be much larger than previously believed. A $1.27 million diamond drill program is recommended in order to expand the gold resources.

In September 2008 an excavator trenching program tested a 2.5km long, copper-gold soil geochemical anomaly discovered three kilometres south of Sultan's Gold Mountain and Kena Gold Zones. Results of the program confirmed a broad zone of low-grade, porphyry style copper mineralization that will require further exploration (see news release of November 3, 2008).

Plans for 2009:

In 2009 Sultan will continue to focus on advancing the Kena Gold properties and the Jersey-Emerald properties.

The following programs are proposed:

1. Commence a planned $1.27 million diamond drill program in order to expand the gold resources on the Kena Property.
2. Seek a Joint Venture partner to assist with the exploration and development of the Kena Property.
3. Complete an updated resource estimate for the Jersey-Emerald property and if required update the scoping study.
4. Continue metallurgical testing of the Jersey-Emerald tungsten mineralization in order to produce a marketable concentrate.
5. Complete a diamond drill program over the new tungsten discovery located 3.0 km south of the Emerald Mine.
6. Follow up targets generated by the Geoscience BC Airborne Geophysical Survey.

Outlook for 2009:

In 2009 we foresee a commodities supply shortage leading to a spike in commodity prices.

In 2008 we saw the collapse of the enormous US credit bubble resulting in a credit crunch that has affected the entire world. The result has been a recession in North America and Europe resulting in metals consumption dropping to 58% of 2007 levels (G. Dirome, President AIM BC). Many large producing mines have cut production, high cost producers have been shutting down and most development projects have been shelved. In spite of these drastic measures metal prices have plummeted and metal stockpiles have ballooned. To a large extent this has been due to the release of metals from hedge funds that have been forced to sell their hoard of commodities into an already weakened market.

We believe these measures will result in a supply shortage leading to a recovery in demand and a spike in commodity prices beginning in late 2009. This shortage will come about due to infrastructure rebuilding in the developed countries and the continuation of rapid industrialization of the emerging markets, particularly the BRIC (Brazil, Russia, India and China) coun¬tries. The new US administration has also proposed infrastructure projects as part of their economic stimulus package.

One base metal that has been relatively unaffected by the commodities downturn has been tungsten. Over the past year the price of tungsten has remained relatively stable. As of December 10, 2008 the average price was $246/MTU for APT concentrate as compared with $245/MTU on December 19, 2007 (Metals Bulletin). Tungsten production is controlled by China with only one significant mine, North American Tungsten (with 3% of world production), providing tungsten concentrate for the western market.

Gold prices continue to see strength in recent months, despite the economic crisis, with recent levels at $850/oz. The outlook for gold is positive due to the amount of uncertainty prevalent in today's financial and political environment and the potential inflationary impact of the government planned stimulus packages.

Sultan Well-Positioned For 2009:

With its exceptional Tungsten and Gold projects Sultan's management believes your company is focused on the right commodities at the right time to survive and prosper from the current commodities crunch.

With approximately $2,000,000 in working capital in the treasury, Sultan is well financed to undertake the work programs planned for its projects.

Arthur G. Troup, President and CEO

For further information, please contact:
Marc Lee, Investor & Corporate Communications
Tel: (604) 687-4622 Fax: (604) 687-4212 Toll Free: 1-888-267-1400
Email: mlee@sultanminerals.com or info@sultanminerals.com