press release from proactive investors

http://www.proactiveinvestors.com.au/companies/news/19750/sultan-corporation-acquires-highly-prospective-bogdan-base-metals-project-in-poland-19750.html



Sultan Corporation (ASX: SSC) has acquired the highly prospective Bogdan base metals exploration project in Poland, located adjacent to one of the world?s biggest copper producers.

The 42 square kilometres tenement sits along a massive fault system where over 25 million tonnes of copper metal has been mined to date and adds significant weight to the company's growth and consolidation strategy in Eastern Europe.

The project is located immediately adjacent to a series of mines and associated infrastructure owned and operated by KGHM Polska Miedz S.A. (KGHM), the largest producer of copper in Europe and the third largest producer of silver in the world.

KGHM is listed on the Warsaw Stock Exchange, with a US$11 billion market capitalisation.

Historical drilling has confirmed significant base metal mineralisation on Sultan?s new tenement and Sultan is planning to undertake deep drilling program to test its copper potential.

The acquisition of the Bogdan Project represents a major milestone for the company.

Mike Ralston, Sultan?s managing director, said "we have previously stated that we intend to build on our competitive advantage to locate and secure additional quality base metal projects throughout this region as part of a consolidation strategy designed to build a genuine mid-tier mining house in the medium term."

KGHM has produced over 25 million tonnes of copper metal from this area over the past 40 years. It produced 507,000 tonnes of copper last year and its 2011 copper production will be nearly three times the output of BHP?s Olympic Dam Project in South Australia, with a targeted operating profit for 2011 of US$3 billion.

Sultan has previously examined results of a single historic drill hole in the Bogdan tenement from coal drilling. This hole intersected very encouraging base metal mineralization including 2.9 metres at 2.70% Pb, 81 ppm Ag and 0.16% Cu from 298.1m beneath the upper layers of coal mineralisation, suggesting that the base metal mineralisation present on at the neighbouring KGHM tenement extends onto Sultan's ground.


Acquisition Terms

Sultan has acquired 85% of the local Polish company (Polmetal) that owns the Bogdan tenement on the following terms:

- An upfront payment of $100,000 as a 12 month Option Fee, payable upon signing the legal agreement and delivery of a valid permit to drill at Bogdan.
- A committed exploration program for a minimum 2,500 metres for $300,000 within the first 12 month period.
- A cash payment of $400,000 ? at Sultan?s discretion, payable within 12 months.
- A one-off payment of $800,000 at any stage over the three years after payment for the initial $100,000 fee, purely at Sultan?s discretion.

Sultan intends to drill up to 2,500 metres in its initial exploration programme over the next 3 months, which will cover the full commitment within the acquisition terms above.

Sultan also intends to consider other prospective tenements within the region near to Bogdan to add to this initial landholding, on the basis of the significant exploration potential that exists within the Bogdan Project.

With a low entry cost and extensive infrastructure already developed in close proximity, Bogdan already has numerous advantages in place, and any success in its exploration program could ultimately lead to the development of a significant mining operation in a relatively short period of time.