SUTTON
RESOURCES LTD.


January 23, 1996
News Release
NASDAQ listed-"STTZF"
VSE listed-"STT"

JIM SINCLAIR PUBLISHES DEFAMATORY LETTER,
RIDDLED WITH FACTUAL MISSTATEMENTS,
TO PRESIDENT OF SUTTON RESOURCES

Richmond, British Columbia - The management of Sutton Resources Ltd. announced today Jim Sinclair, Sutton's former chairman, released to the press yesterday a defamatory letter riddled with factual misstatements.

"We had hoped Jim Sinclair would participate in his wife's proxy contest in a more legitimate manner. At the very least, we had assumed we could rely upon Jim Sinclair to tell our shareholders the true and correct facts", stated Michael Kenyon, Suttons president.

According to the Company, Sinclair misstated the following facts in his January 22 letter to Sutton's president:

HERE IS WHAT REALLY HAPPENED:

Sutton's Management assisted the Company by exercising their existing options to finance the company when Mr. and Mrs. Sinclair placed it in difficult circumstances. Management had the right to do this at any time.

Sutton's president, Michael Kenyon, concluded:

"Our shareholders have once again been treated to Jim Sinclair's re-fashioned version of Sutton's history. The truth always comes out. I am confident our shareholders will support Management rather than the Sinclair's self-interest."


For more information, contact:

Michael Kenyon, President
SUTTON RESOURCES LTD.

205 - 10711 Cambie Road
Richmond, British Columbia
CANADA

Tel: (604) 276-2576
Fax: (604) 278-8837
Internet URL: http://www.info-mine.com/sutton/


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