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TSX Venture Exchange Symbol: SUL

SEC 12g3-2(b): 82-4741

Frankfurt Stock Exchange: RZN

Vancouver, BC - January 16, 2013: Sultan Minerals Inc. (TSX-V: SUL; "Sultan") is pleased to announce that Sultan's Joint Venture Partner, Altair Gold Inc. (TSX-V: AVX; "Altair") has released final results of the 2012 drilling program at its Kena Property, located in southeastern British Columbia. The two phase diamond drilling program comprised 7,527 metres in 41 drill holes. Results of the program have successfully expanded the original Kena Gold Zone (KGZ) and better defined the Gold Mountain Zone (GMZ).

Drilling focused on the Kena Gold Zone, the Gold Mountain Zone, the High Grade Corridor (HGC) and other property scale targets. In all, the 2012 drilling spanned a north-northwest length of 3.68 kilometres. Drill hole spacing ranged from 35 to 100 metres in and around the aforementioned zones and 250 metres and more in areas of little or no previous drilling.

The Kena Gold Zone was further drill tested in Phase 2 with nine drill holes. These were directed at the "down-dip" westerly projection of the zone as well as testing to the north and south of the zone.

The Gold Mountain Zone was tested by five additional holes directed to fill in information gaps within the zone.

The High Grade Corridor contains rock and drill core samples that historically returned extremely high gold values over widths of one or more metres (see Sultan News Release dated December 11, 2012). Six drill holes tested the HGC in Phase 2.

Phase 2 drilling was concluded by two holes located several hundred metres northwest of the Gold Mountain Zone. These holes were drilled to test geology as well as geochemical and geophysical anomalies identified during prior work programs.

RESULTS

Phase 1 drilling at the Kena Property comprised 19 holes at the KGZ and the GMZ and demonstrated strong continuity of gold mineralization within the two zones (See Sultan News Release October 25, 2012).

The drill core samples taken from the 21-hole Phase 2 drilling have been analyzed and the results have been tabulated. The results of Phase 1 and Phase 2 drilling are summarized below.

Kena Gold Zone

Altair previously released the results of the first 9 drill holes completed in Phase 1 at the Kena Gold Zone (see Sultan News Release October 25, 2012). Drilling returned long intercepts of significant gold mineralization containing shorter intervals of 'bonanza' grades, including 32.9g/t Au over 2.95 metres (47.55m to 50.5m) in 12KG02. Significant results from the Phase 1 Kena Gold Zone drill holes are tabled below:

Significant Results from the Kena Gold Zone 2012 - Phase 1 Drilling

 ------------------------------------------------
 |Hole ID  |From (m)|To (m)|Length* (m)|Au (g/t)|
 |----------------------------------------------|
 |12KG01** |10.31   |128.05|117.74     |1.15    |
 |----------------------------------------------|
 |includes:|11.75   |29.26 |17.51      |0.97    |
 |----------------------------------------------|
 |includes:|71.93   |114.60|42.67      |2.15    |
 |----------------------------------------------|
 |includes:|71.93   |94.06 |22.13      |2.94    |
 |----------------------------------------------|
 |includes:|73.97   |85.23 |11.26      |4.54    |
 |----------------------------------------------|
 |12KG02** |15.20   |100.30|85.10      |2.50    |
 |----------------------------------------------|
 |includes:|44.50   |86.15 |41.65      |4.64    |
 |----------------------------------------------|
 |Includes:|44.50   |58.30 |13.80      |12.29   |
 |----------------------------------------------|
 |12KG-03  |6.09    |77.97 |71.88      |0.53    |
 |----------------------------------------------|
 |12KG-04  |4.88    |137.47|132.59     |0.42    |
 |----------------------------------------------|
 |includes:|82.85   |90.87 |8.02       |1.52    |
 |----------------------------------------------|
 |12KG-05  |3.05    |154.53|151.48     |0.61    |
 |----------------------------------------------|
 |includes:|14.33   |42.68 |28.35      |1.06    |
 |----------------------------------------------|
 |12KG-07  |20.15   |95.47 |75.32      |0.64    |
 |----------------------------------------------|
 |12KG-08  |3.00    |154.84|151.84     |0.58    |
 |----------------------------------------------|
 |includes:|32.2    |55.58 |23.38      |0.89    |
 |----------------------------------------------|
 |includes:|78.59   |81.69 |3.10       |5.54    |
 |----------------------------------------------|
 |includes:|135.90  |154.84|18.94      |0.59    |
 ------------------------------------------------

*True width of intercept not known, and may be less than the interval indicated

** Metallics Assays

The Phase 2 drilling results continue to indicate long intercepts of gold mineralization that include shorter higher-grade intercepts.

Significant Results from the Kena Gold Zone 2012 - Phase 2 Drilling

 ---------------------------------------------------
 |Hole ID   |From (m)|To (m)|Length* ( m)|Au* (g/t)|
 |-------------------------------------------------|
 |12KG-09   |68.86   |236.50|167.64      |0.66     |
 |-------------------------------------------------|
 |includes: |105.30  |209.50|104.20      |0.84     |
 |-------------------------------------------------|
 |includes: |107.26  |150.20|42.94       |0.94     |
 |-------------------------------------------------|
 |includes: |140.45  |150.20|9.75        |1.64     |
 |-------------------------------------------------|
 |includes: |171.50  |209.50|38.00       |0.93     |
 |-------------------------------------------------|
 |12KG-10   |67.14   |202.45|135.31      |0.55     |
 |-------------------------------------------------|
 |includes: |79.10   |84.48 |5.38        |1.14     |
 |-------------------------------------------------|
 |includes: |114.40  |138.45|24.05       |1.00     |
 |-------------------------------------------------|
 |12KG-11   |67.50   |235.16|167.66      |0.77     |
 |-------------------------------------------------|
 |includes: |151.04  |220.37|69.33       |1.40     |
 |-------------------------------------------------|
 |includes: |151.04  |157.35|6.31        |9.45     |
 |-------------------------------------------------|
 |12KG-12   |96.40   |106.55|10.15       |1.13     |
 |-------------------------------------------------|
 |and       |155.43  |243.78|88.35       |0.48     |
 |-------------------------------------------------|
 |includes: |187.80  |225.73|37.93       |0.70     |
 |-------------------------------------------------|
 |includes: |187.80  |208.97|21.17       |1.02     |
 |-------------------------------------------------|
 |12KG-13   |69.56   |76.21 |6.65        |2.08     |
 |-------------------------------------------------|
 | includes:|74.28   |76.21 |1.93        |5.44     |
 |-------------------------------------------------|
 |12KG-14   |188.30  |190.03|1.73        |4.48     |
 |-------------------------------------------------|
 |12KG-15   |116.88  |138.38|21.50       |0.99     |
 |-------------------------------------------------|
 |includes: |135.33  |138.38|3.05        |4.03     |
 |-------------------------------------------------|
 |12KG-15   |164.20  |181.05|16.85       |0.51     |
 |-------------------------------------------------|
 |includes: |169.20  |171.79|2.59        |1.43     |
 |-------------------------------------------------|
 |12KG-16   |25.75   |57.95 |32.20       |0.36     |
 |-------------------------------------------------|
 |includes: |37.43   |42.17 |4.74        |0.87     |
 |-------------------------------------------------|
 |12KG-16   |74.45   |114.60|40.15       |0.63     |
 |-------------------------------------------------|
 |includes: |74.45   |101.41|26.96       |0.81     |
 |-------------------------------------------------|
 |includes: |74.45   |76.75 |2.30        |1.11     |
 |-------------------------------------------------|
 |includes: |98.00   |99.27 |1.27        |5.81     |
 |-------------------------------------------------|
 |12KG-16   |137.75  |146.49|8.74        |0.61     |
 |-------------------------------------------------|
 |12KG-16   |157.68  |203.72|46.04       |0.46     |
 |-------------------------------------------------|
 |includes: |158.38  |161.05|2.67        |1.43     |
 |-------------------------------------------------|
 |includes: |193.24  |195.60|2.36        |2.05     |
 |-------------------------------------------------|
 |includes: |202.94  |203.72|0.78        |4.45     |
 |-------------------------------------------------|
 |12KG-17   |31.22   |48.59 |17.37       |0.55     |
 ---------------------------------------------------

*True width of intercept not known, and may be less than the interval indicated

Drill holes 12KG-09 and 12KG-10 indicate that the gold mineralization at the KGZ extends to depth in areas not previously tested along the zone. Holes 12KG-13 and 12KG-14 were located up to 500 metres to the south of the areas previously drilled by Altair, and indicate that gold mineralization does extend outward in that direction.

Drill holes 12KG-15, 16, and 17 were all drilled to the north in areas previously not tested at the KGZ. Gold mineralization is shown to extend in this direction. Intercepts of 4.03 grams per tonne over 3.05 metres in hole 12KG-15 (135.33-138.38m) and 5.81 grams per tonne over 1.27 metres in hole 12KG-16 (98.00-99.27m) indicate the potential for continuation of higher grades in this direction.

Gold Mountain Zone

Altair also previously released the results of Phase 1 drilling at the Gold Mountain Zone (see Sultan News Release October 25, 2012). Significant results from the Phase 1 drilling are summarized below:

Significant Results from the Gold Mountain Zone 2012 - Phase 1 Drilling

 ------------------------------------------------
 |Hole ID  |From (m)|To (m)|Length* (m)|Au (g/t)|
 |----------------------------------------------|
 |12GM-01  |10.97   |106.32|95.35      |1.37    |
 |----------------------------------------------|
 |includes:|21.25   |44.34 |23.09      |2.66    |
 |----------------------------------------------|
 |includes:|89.05   |104.12|15.07      |2.40    |
 |----------------------------------------------|
 |includes:|91.93   |94.16 |2.23       |4.01    |
 |----------------------------------------------|
 |includes:|96.39   |98.39 |2.00       |4.52    |
 |----------------------------------------------|
 |12GM-02  |100.80  |156.97|56.17      |0.55    |
 |----------------------------------------------|
 |includes:|137.50  |150.88|13.38      |0.74    |
 |----------------------------------------------|
 |includes:|149.55  |150.88|1.33       |3.05    |
 |----------------------------------------------|
 |and      |210.80  |221.20|10.40      |0.75    |
 |----------------------------------------------|
 |12GM-03  |111.25  |156.97|45.72      |0.45    |
 |----------------------------------------------|
 |12GM-04  |3.05    |56.69 |53.64      |0.59    |
 |----------------------------------------------|
 |includes:|3.05    |23.16 |20.11      |1.03    |
 |----------------------------------------------|
 |12GM-07  |73.81   |96.52 |22.71      |1.12    |
 |----------------------------------------------|
 |12GM-10  |135.94  |168.00|32.06      |0.56    |
 |----------------------------------------------|
 |and:     |198.37  |202.36|3.99       |1.05    |
 ------------------------------------------------

*True width of intercept not known, and may be less than the interval indicated

These holes were interspersed over a distance of approximately 1,000 metres, from the main area of the GMZ outward, with an average 110 metre interval between holes. Results of the Phase 1 drilling were encouraging in that elevated gold values were returned from areas not previously tested by drilling. Holes 12GM-05, 12GM-06, 12GM-08, 12GM-09 and 12GM-11 did not intersect significant mineralization.

Four additional drill holes further tested the GMZ in Phase 2. These widely spaced holes were designed to test outward to the east and south from the areas previously tested. Results from the Phase 2 drilling at the GMZ are provided below:

Significant Results from the Gold Mountain Zone 2012 - Phase 2 Drilling

 ------------------------------------------------
 |Hole ID  |From (m)|To (m)|Length* (m)|Au (g/t)|
 |----------------------------------------------|
 |12GM-12  |44.25   |48.31 |4.06       |0.98    |
 |----------------------------------------------|
 |includes:|47.66   |48.31 |0.65       |3.05    |
 |----------------------------------------------|
 |12GM-13A |68.28   |87.48 |19.20      |0.67    |
 |----------------------------------------------|
 |includes:|83.52   |86.56 |3.04       |1.18    |
 |----------------------------------------------|
 |12GM-13B |62.18   |134.05|71.87      |0.45    |
 |----------------------------------------------|
 |includes:|74.37   |86.56 |12.19      |0.79    |
 ------------------------------------------------

Drill hole 12GM-12 was located approximately 900 metres south from the main area of the GMZ. The location of 12GM-12 is within 400 metres of the northern extent of the KGZ. This drill hole, along with drill hole 12KG-17, was designed to test the gap between the Gold Mountain and Kena Gold zones. The results from sampling of core from 12GM-12 indicate the potential for continued gold mineralization between the two zones.

Drill holes 12GM-13A and 13B were drilled from the same collar. Drill hole 12GM-13A had to be abandoned at 87 metres depth due to bad ground conditions, and was re-drilled by 12GM13-B to a depth of 202 metres. Drill holes 12GM-14 and 15 were drilled approximately 250 metres to the east of the main GMZ trend. No significant gold values were returned from these two drill holes.

High Grade Corridor

The Phase 2 drilling program also tested one area along the High Grade Corridor. This corridor has been described as a linear zone of rock and drill core samples that returned extremely high gold values (up to 240.07g/t Au in drill core) over widths of a metre or more (see Sultan News Release dated December 11, 2012). The table below lists a number of drill intercepts within this High Grade Corridor:

Selected Drill Hole Samples over 15g/t Au within the High Grade Corridor

 -------------------------------------
 |HOLE ID|FROM  |TO    |WIDTH*|Au g/t|
 |-----------------------------------|
 |01GM-03|48.77 |50.00 |1.23  |240.07|
 |-----------------------------------|
 |and    |74.00 |76.00 |2.00  |29.84 |
 |-----------------------------------|
 |and    |84.00 |86.00 |2.00  |16.34 |
 |-----------------------------------|
 |01GM-06|130.00|132.00|2.00  |18.86 |
 |-----------------------------------|
 |and    |204.00|206.00|2.00  |172.10|
 |-----------------------------------|
 |and    |257.00|258.00|1.00  |32.36 |
 |-----------------------------------|
 |01GM-20|64.00 |66.00 |2.00  |15.56 |
 |-----------------------------------|
 |and    |48.00 |49.83 |1.83  |18.72 |
 |-----------------------------------|
 |and    |11.00 |12.00 |1.00  |22.06 |
 |-----------------------------------|
 |and    |12.00 |13.00 |1.00  |33.87 |
 |-----------------------------------|
 |02GM-35|117.00|119.00|2.00  |15.03 |
 |-----------------------------------|
 |02GM-39|30.00 |32.00 |2.00  |16.69 |
 |-----------------------------------|
 |and    |83.00 |85.00 |2.00  |18.21 |
 |-----------------------------------|
 |02GM-62|80.97 |83.00 |2.03  |34.44 |
 |-----------------------------------|
 |and    |43.00 |44.00 |1.00  |40.66 |
 |-----------------------------------|
 |TK87-46|53.89 |54.89 |1.00  |34.29 |
 |-----------------------------------|
 |and    |79.43 |79.73 |0.30  |15.13 |
 |-----------------------------------|
 |LK86-30|83.44 |85.56 |2.12  |23.10 |
 |-----------------------------------|
 |LK85-08|12.42 |12.65 |0.23  |50.66 |
 |-----------------------------------|
 |and    |48.80 |49.89 |1.09  |27.88 |
 |-----------------------------------|
 |02SL-01|14.81 |15.09 |0.28  |30.37 |
 |-----------------------------------|
 |and    |232.73|234.73|2.00  |21.51 |
 -------------------------------------

*True width of intercept not known, and may be less than the interval indicated

Altair selected three drill pad locations to test the HGC trend, all located close to the area tested previously by hole 01GM-20. The Phase 2 drill holes 12HGZ-01 and -02 were fan drilled from a single pad designed to intersect to the direct north and south of the higher grade intercept of hole 01GM-20. Holes 12HGZ-03, -04, and -05 were fan drilled from a single pad located approximately 50 metres south of the 12HGZ-03 pad, and 12HGZ-06 was located approximately 70 metres northwest 12HGZ-03. Results of the HGC drilling are summarized below:

 ------------------------------------
 |HOLE ID |FROM |TO   |WIDTH*|Au g/t|
 |----------------------------------|
 |12HGZ-01|46.50|52.05|5.55  |2.34  |
 |and     |50.80|52.05|1.25  |7.89  |
 |----------------------------------|
 |12HGZ-02|31.35|53.93|22.58 |0.34  |
 |----------------------------------|
 |12HGZ-04|64.30|77.11|12.81 |0.73  |
 ------------------------------------

The Phase 2 drilling of the HGC returned a single intercept with elevated gold values. Hole 12HGZ-01 returned 7.89 grams per tonne gold over 1.25 metres (50.8-52.05m). Lower gold values returned from samples taken from holes 12HGZ-02 and -04 indicate that gold mineralization continues through this part of the property. No significant values were returned from samples of core taken from 12HGZ-04, 12KGZ-05 and 12KGZ-06.

The high grade zones intercepted in previous drilling appear to be contained within late stage structures that may have orientations that differ from the regional trend. These zones are poorly defined and may be restricted in size. Altair plans to continue investigation of the higher grade intercepts in all of the drilling to date to further establish continuity of the HGC. Computer modeling will assist in directing further exploration of these bonanza shoots.

Altair is currently working on the construction of a new geologic model for the Kena Property resource utilizing new information gained from the 2012 drill program and a review of renewed interpretation of historic work.

Altair is also undergoing permit application for a 2013 work program on the Kena Property. Areas of proposed work include further testing of the High Grade Corridor and expansion of the Kena Gold and Gold Mountain Zones. As well, Altair will continue to test other areas on the property, including the historic Euphrates, Gold Cup and Three Friends mine areas, where no drilling has previously been done.

The Gold Cup and Three Friends showings lie within the favourable Silver King structure that hosts the Kena Gold and Gold Mountain zones. The structure has been traced by geologic mapping and geophysical surveys for a distance of six kilometres south from the Kena Gold Zone to the Euphrates Mine. These historic showings, together with the KGZ and GMZ define a 12 kilometre long gold and copper enriched belt.

The Euphrates Mine had a reported 307 tonnes mined recovering 14,401 grams of gold (average grades of 47 g/t Au) and 76,543 grams of silver (average grades of 249 g/t Ag) as calculated from BC Ministry of Mines Minfile Number 082FSW186. The Euphrates showing lies along an altered shear structure within the Elise Volcanic rocks adjacent to the Silver King porphyry, similar to the Kena Gold zone geologic setting. The three historic mine showings, together with the Kena Gold and Gold Mountain zones, define a 12 kilometre long gold and copper enriched belt.

Compilation of all airborne and ground geophysical data collected on the property is currently being processed and compiled by DMT Geosciences Ltd, with results expected shortly. These results, combined with geological and geochemical information will be utilized to identify areas for infill or expansion during the 2013 work program.

The current Measured & Indicated Mineral Resource for the Kena Property (NI 43-101 Compliant Technical Report, May 2012) is 549,000 ounces of gold and the Inferred Mineral Resource is 513,000 ounces of gold, all based upon a 0.30g/t Au cutoff as summarized below:

 --------------------------------------------
 |GOLD MOUNTAIN ZONE                        |
 |------------------------------------------|
 |         |Tonnes    |Grade (g/t)|Ounces Au|
 |------------------------------------------|
 |MEASURED |          |           |         |
 |         |1,840,000 | 0.87      | 51,000  |
 |------------------------------------------|
 |INDICATED|          |           |         |
 |         |9,010,000 | 0.68      | 198,000 |
 |------------------------------------------|
 |TOTAL M&I|10,850,000|           |         |
 |         |          | 0.71      | 249,000 |
 |------------------------------------------|
 |INFERRED |22,110,000|           |         |
 |         |          | 0.60      | 428,000 |
 --------------------------------------------

 --------------------------------------------
 |KENA GOLD ZONE                            |
 |------------------------------------------|
 |         |Tonnes    |Grade (g/t)|Ounces Au|
 |------------------------------------------|
 |MEASURED |          |           |         |
 |         |2,910,000 | 0.77      | 72,000  |
 |------------------------------------------|
 |INDICATED|11,773,973|           |         |
 |         |          | 0.60      | 228,000 |
 |------------------------------------------|
 |TOTAL M&I|14,683,973|           |         |
 |         |          | 0.64      | 300,000 |
 |------------------------------------------|
 |INFERRED |          |           |         |
 |         |3,800,000 | 0.70      | 85,000  |
 --------------------------------------------

The Qualified Person for the Kena Property is Mr. Warner Gruenwald, P.Geo. and VP Exploration for Altair Gold Inc.

Arthur G. Troup, P.Eng., Geological

President and CEO

For further information please contact:
Marc Lee, Investor and Corporate Communications
Tel: (604) 628-0519 Fax: (604) 628-0446
Email: [email protected] or [email protected]

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

This release was prepared by Sultan's management. Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that Sultan expects are forward-looking statements. Although Sultan believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Sultan, investors should review Sultan's filings that are available at www.sedar.com or Sultan's website at www.sultanminerals.com.

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