Collins Litigation Settled

[Lady_Luck]

Littlefield Corporation announced that it has settled the Collins litigation. Littlefield will pay to Collins a total of $2,175,000 with an initial payment of $1,025,000 together with 46 monthly payments of $25,000.

This settlement will require an addition to the Company's reserves for legal expenses of approximately $185,000. This expense will be recognized during Q3-2006.

The Collins matter relates to events which took place during the mid-1990s pertaining to video poker. The Company is no longer engaged in video poker in South Carolina and no member of the Company's then senior management or any employee who was in a decision-making capacity is currently employed by the Company. No member of the current senior management was employed by the Company at that time.

Jeffrey L. Minch, President and Chief Executive Officer of Littlefield Corporation, offered the following comments:

"The Collins litigation has been conclusively settled in a manner acceptable to all parties.

The settlement of this matter is a very, very significant development and one that we have been working to resolve for a long, long time. It really harkens the end of the Company's unresolved legal travails and marks the beginning of a new day in the Company's history."

[Deuces_Wild]

"An initial payment of $1,025,000 together with 46 monthly payments of $25,000."

46 payments of $25,000. Damn. That must be nice.