CALGARY, ALBERTA--(Marketwire - Nov. 7, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Golconda Resources Ltd. (TSX VENTURE:GA) (the "Corporation" or "Golconda) announces that it intends to complete a non-brokered private placement of up to 10,000,000 units of the Corporation ("Units") at a price of $0.05 per Unit for gross proceeds of up to $500,000. Each Unit issued pursuant to the private placement will consist of one common share of the Corporation and one-half of one warrant, with each whole warrant entitling the holder thereof to purchase one common share at an exercise price of $0.10 per share for a period of five years. The private placement may close in a series of tranches over the next 30 to 60 days. The securities issued pursuant to the private placement will be subject to a four-month hold period. Certain insiders, directors and officers may subscribe for a portion of this private placement.

Proceeds of the private placement will be used for general corporate purposes and to increase the Corporation's working capital. If the private placement is fully subscribed, the Corporation will have 111,076,818 common shares issued and outstanding.

The completion of the private placement is subject to TSX Venture Exchange approval and other regulatory approval.

Golconda is in the business of exploration drilling in western and northern Canada, and mineral property exploration and development in British Columbia and Nevada.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The offered securities mentioned in this press release will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.

This new release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Corporation's disclosure documents on the SEDAR website at [ www.sedar.com ]. The Corporation does not undertake to update any forward-looking information except in accordance with applicable securities laws.

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