CALGARY, ALBERTA--(Marketwire - Oct. 24, 2012) -

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

Golconda Resources Ltd. (the "Corporation" or "Golconda") (News - Market indicators) is pleased to provide the following information regarding the independent reserves assessment and evaluation of Golconda's proposed 25% working interest in approximately 1,600 acres of Cold Lake First Nation lands (the "Lands"), which are the subject of the previously announced joint venture among the Corporation, a Calgary based private oil and gas company ("PrivateCo") and Tri-Rez Ebay Energy Ltd. ("TRE") with respect to oil and gas exploration and development (the "Joint Venture"). The evaluation was conducted by GLJ Petroleum Consultants Ltd. ("GLJ"), effective as at August 31, 2012 and was conducted pursuant to National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook ("COGE") reserves definitions.

Pursuant to the Joint Venture agreement, TRE has agreed with Golconda and PrivateCo (collectively, the "Farmees") to acquire from Indian Oil and Gas Canada ("IOGC") a lease (the "Lease") covering the Lands. The Farmees have agreed to a ten (10) well work program over a period of three (3) years, which shall consist of the Farmees drilling a minimum of three (3) wells prior to the end of the first year of the Lease, a minimum of four (4) wells prior to the end of the second year of the Lease and a minimum of three (3) additional wells prior to the end of the third year of the Lease. The Farmees will each earn a 25% working interest in each successfully drilled or abandoned well.

RESERVES INFORMATION

The following table summarizes Golconda's proposed working interest in the oil reserves on the Lands effective as of August 31, 2012 as evaluated by GLJ.

The following table summarizes the Net Present Value of Golconda's share of oil as reserves effective as at August 31, 2012.

Trading in the shares of Golconda on the TSX Venture Exchange will resume at the opening of market on Friday October 26, 2012.

Forward Looking Statements

Certain statements contained in this press release may constitute forward-looking statements. These statements relate to future events or the Golconda's future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Golconda believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon by investors. These statements speak only as of the date of this press release and are expressly qualified, in their entirety, by this cautionary statement.

In particular, this press release contains forward-looking statements, pertaining to the following: projections of market prices and costs, supply and demand for oil and natural gas, the quantity of reserves, oil and natural gas production levels, capital expenditure programs, treatment under governmental regulatory and taxation regimes, expectations regarding Golconda's ability to raise capital and to continually add to reserves through acquisitions and development, and projections of market prices and costs.

With respect to forward-looking statements contained in this press release, Golconda has made assumptions regarding, among other things: the legislative and regulatory environments of the jurisdiction where Golconda carries on business or has operations, the impact of increasing competition, and Golconda's ability to obtain additional financing on satisfactory terms.

Golconda's actual results could differ materially from those anticipated in these forward-looking statements as a result of risk factors that may include, but are not limited to: volatility in the market prices for oil and natural gas; uncertainties associated with estimating reserves; uncertainties associated with Golconda's ability to obtain additional financing on satisfactory terms; geological, technical, drilling and processing problems; liabilities and risks, including environmental liabilities and risks, inherent in oil and natural gas operations; incorrect assessments of the value of acquisitions; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel.

This forward-looking information represents Golconda's views as of the date of this document and such information should not be relied upon as representing its views as of any date subsequent to the date of this document. Golconda has attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimates expressed or implied by the forward-looking information. However, there may be other factors that cause results, performance or achievements not to be as expected or estimated and that could cause actual results, performance or achievements to differ materially from current expectations. There can be no assurance that forward-looking information will prove to be accurate, as results and future events could differ materially from those expected or estimated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Except as required by law, Golconda undertakes no obligation to publicly update or revise any forward-looking statements.

Information Regarding Disclosure on Oil and Gas Reserves. The reserves data set forth above is based upon an independent reserves assessment and evaluation prepared by GLJ with an effective date of August 31, 2012 (the "GLJ Report"). The presentation summarizes Golconda's crude oil, natural gas liquids and natural gas reserves and the net present values before income tax of future net revenue for Golconda's reserves using forecast prices and costs based on the GLJ Report. The GLJ Report has been prepared in accordance with the standards contained in the COGE and the reserve definitions contained in NI 51-101. All evaluations and reviews of future net cash flows are stated prior to any provisions for interest costs or general and administrative costs and after the deduction of estimated future capital expenditures for wells to which reserves have been assigned. It should not be assumed that the estimates of future net revenues presented in the tables above represent the fair market value of the reserves. There is no assurance that the forecast prices and cost assumptions will be attained and variances could be material. The recovery and reserve estimates of our crude oil, natural gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquids reserves may be greater than or less than the estimates provided herein. The reserve data provided in this release only represents a summary of the disclosure required under NI 51-101.

BOE Presentation. References herein to "boe" mean barrels of oil equivalent derived by converting gas to oil in the ratio of six thousand cubic feet (Mcf) of gas to one barrel (bbl) of oil. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.