JANUARY 16, 2006 - 08:00 ET Lundin Mining Purchases Just Under...

JANUARY 16, 2006 - 08:00 ET

Lundin Mining Purchases Just Under 10% of Sunridge Gold Through Strategic Alliance and Financing Arrangement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 16, 2006) - Sunridge Gold Corp. (TSX VENTURE:SGC) is pleased to announce that it has entered into a strategic alliance and financing arrangement with Lundin Mining Corporation (TSX:LUN)(O-List Stockholmsborsen:LUMI) whereby Lundin Mining Corporation will purchase units equal to just under a 10% equity stake in Sunridge Gold. Lundin Mining has subscribed, by way of a non-brokered private placement, for 3,150,000 units of Sunridge Gold Corp. (the Company) at a price of $1.66 per unit for gross proceeds of $5,229,000. Each unit consists of one common share and one common share purchase warrant. Each warrant shall entitle the purchaser to purchase, at any time within twenty-four months from closing, one common share of the Corporation at a price of $2.07. The exercise of these warrants would bring Lundin Mining's interest in Sunridge Gold to approximately 18%. As part of this transaction, Sunridge Gold has agreed to appoint two representatives of Lundin Mining to the Sunridge Board of Directors.

For its role in facilitating this transaction Salman Partners will be paid a finder's fee of 6%, payable in Units and 6% in finder's warrants upon closing. In addition the Company will pay Salman Partners a 6% finders fee if any Lundin warrants are exercised within twelve months of closing. This private placement is subject to all regulatory approvals. The net proceeds of the private placement will be used for the advancement of Sunridge Gold's projects in Eritrea and for general corporate purposes.

Sunridge Gold's President and CEO, Michael Hopley, states, "This is a very meaningful strategic alliance for Sunridge Gold as it allows the Company to access the technical and financial expertise of the Lundin Mining group and assist Sunridge Gold in rapidly advancing our projects into production."

Lundin Mining is a Canadian mining and exploration company with a primary focus in Europe. The main asset is the Zinkgruvan mine, located about 2000 kilometres southwest of Stockholm, Sweden. The mine has been producing zinc, lead and silver on a continuous basis since 1857. Zinkgruvan has consistently ranked in the lowest cost quartile among zinc mines in the world. Lundin Mining also owns the Galmoy zinc mine in Ireland and the Storliden zinc/copper mine in the Skellefte District of northern Sweden. The Company also holds a large copper/gold exploration project in the Norrbotten Mining District of northern Sweden.

Sunridge Gold Corp. is a mineral exploration company focused on the acquisition, exploration, discovery and development of precious and base metal projects. The Company is currently conducting exploration on the high-grade gold/copper/zinc VMS projects of the Asmara Joint Venture in Eritrea. The Company is continuing to be the sole financial contributor to the JV to earn a 70% interest. The Company trades on the TSX Venture Exchange under the symbol SGC. For additional information on the Company and its projects please view the slide show on our website at www.sunridgegold.com (note: A new SGC website will be on line by January 18, 2006) or call Don Halliday at the number listed below.

SUNRIDGE GOLD CORP.

"Michael Hopley"

Michael Hopley, President and Chief Executive Officer