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 Mon Oct 16, 2006
Sultan Minerals Announces Private Placement Financing

 Sultan Minerals Inc. (SUL-TSX Venture) ("Sultan") is pleased to announce that subject to regulatory approval, it will carry out a non-brokered private placement of up to 1,110,000 units (the "FT Units") at a price of $0.18 per FT Unit, for gross proceeds of up to $199,800. Each FT Unit is comprised of one (1) flow-through common share and one-half of one non-flow-through share purchase warrant. Each whole share purchase warrant will entitle the holder to purchase one additional non-flow-through common share of Sultan for a period of 12 months from closing, at an exercise price of $0.25 per share.

Additionally, and subject to regulatory approval, Sultan will carry out a non-brokered private placement of up to 1,375225 units (the "Units") at a price of $0.16 per Unit, for gross proceeds of up to $220,036. Each Unit is comprised of one (1) non-flow-through common share in the capital of Sultan, and one-half of one non-flow-through share purchase warrant. Each whole share purchase warrant will entitle the holder to purchase one additional non-flow-through common share of Sultan for a period of 24 months from closing, at an exercise price of $0.25 per share.

Sultan may pay a cash finder's fee equal to eight percent (8%) of the gross proceeds received by it from the sale of FT Units and/or Units arranged by an arm's length finder (the "Finder"), and may also grant to such Finder non-transferable warrants (the "Finder's Warrants") to purchase that number of non-flow-through common shares of Sultan (the "Finder's Warrant Shares") as is equal to 10% of the aggregate number of FT Units and/or Units sales to eligible investors arranged by such Finder. Each Finder's Warrant issued in relation to the sale of FT Units is exercisable to acquire a Finder's Warrant Share, at a price of $0.25 per share for a period of one (1) year from the closing date of the flow-through private placement, and each Finder's Warrant issued in relation to the sale of Units is exercisable to acquire a Finder's Warrant Share, at a price of $0.25 per share for a period of two (2) year from the closing date of the non-flow-through private placement.

All shares, warrants and any shares issued upon exercise of the warrants with respect to the above private placements are subject to a hold period and may not be traded for four months plus one day from the date of closing.

Proceeds from the non-brokered private placement will be used to fund Sultan's work programs in British Columbia and for general working capital.

For further information on Sultan's projects, visit www.sultanminerals.com.

Arthur G. Troup, P.Eng., Geological
President and CEO

For further information please contact:
Investor Relations
Tel: (604) 687-4622 Fax: (604) 687-4212
T. J. Malcolm Powell -- Email: IR@langmining.com
Email: info@sultanminerals.com

No regulatory authority has approved or disapproved the information contained in this news release.
 
 

You can view the Next 2006 News Releases item: Mon Oct 23, 2006, Sultan Minerals Inc. Completes Private Placement Financing

You can view the Previous 2006 News Releases item: Mon Oct 2, 2006, Sultan Minerals Receives Report From BHP For Stephens Lake Nickel Property

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