Sunset Cove Collars First Hole in a 6000-Meter Drill Program on its Carolay Property

MONTREAL, Jan. 5 /CNW Telbec/ - (TSX-V: SSM): Lorne Woods, President of Sunset Cove Mining is proud to announce that diamond drilling has commenced on its Silver Polymetallic Carolay Property in the province of La Libertad in Peru. As reported in the news release of December 16th, 2010 Explo Drilling reached the Carolay property on the 17th of December.

Explo Drilling collared the first drill hole on December 18th from the first of five drill pads selected by the company (please see photos and the map on our website

"We are very happy to begin this program," said Lorne Woods, President and CEO of Sunset Cove Mining. "It will help us to better define the structures of the Carolay Vein and allows us to refine future drilling and exploration in 2011."

Drill hole CA-10-01, is being drilled to the north and will be approximately 800 meters in length, into the Carolay 2 Vein. Drill hole CA-10-02 will be drilled in a westerly direction for approximately 300 meters. Both holes will intersect anomalous conductive axis no. 2 detected in recent I.P. work performed during the summer of 2010. This chargeability anomaly is located to the southeast of the Carolay vein. And has been described as having the strongest chargeability anomaly of the current survey. It extends over 600 meters in width and remains open at the southeast end.

Drilling stopped for a Christmas break and was re-started on Dec. 29 and it is expected the first two holes will be completed by the end of January. Assay results are expected shortly after.

Sunset Cove also wishes to announce that Alain Blais, P Geo, has left the company. We wish him well in his future endeavors and thank him for his work with the company.


The Carolay Property Exploration Program is under the supervision of Mr. Alain-Jean Beauregard P. Geol. of Geologica Inc., an independent consultant and qualified person as designated by National Instrument 43-101 who has reviewed the technical content of this release. Mr. Bratzon Salvador, Operations Manager, supervises exploration at Sunset Cove's projects. All technical information for the company's projects is obtained and reported under a formal quality assurance and quality control (QA/QC) program.

About Sunset Cove

Sunset Cove is a mineral exploration company incorporated in Canada that seeks to increase shareholder value through the acquisition, exploration and advancement of potentially large-scale precious metals and copper properties. It has a Peruvian mining portfolio in precious metals and copper, with two properties under contract. One of those properties is the Carolay Polymetallic Silver Property (the "Carolay Property").

Forward-Looking Statements
Some of the statements contained herein may be forward-looking statements that involve known and unknown risks and uncertainties. Results presented in this press release are exploratory in nature. Historical data, if mentioned, should not be relied upon, as they are not admissible under NI 43-101 rules and the Company has not conducted sufficient testing to verify this type of information.

Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward-looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward-looking statements: changes in the world-wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability, and the uncertainty of access to additional capital. Sunset Cove disclaims any obligation to update any such forward-looking statements.


For further information:

Lorne Woods
Sunset Cove Mining
(877) 234-0692; ext 250

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