AFCAN Mining Corporation: Announcement of Intention to Seek Admission to the Alternative Investment Market.

TORONTO -- AFCAN Mining Corporation (TSX:AFK), a mining company principally focused on developing its Tanjianshan Gold Project in China, today announces its intention to seek admission to the Alternative Investment Market ("AIM"), a market operated by the London Stock Exchange plc.Afcan's common shares are traded on the Toronto Stock Exchange (symbol: AFK).

Seymour Pierce Limited is acting as Nominated Advisor to the
Admission.

Key point summary

- Opportunity to invest in a company poised to be a foreign gold
  producer in China, with proved resources and significant
  exploration upside

- Strong experienced management team with key strategic cultural
  relationships in China

- Measured and indicated resources in excess of 1 million ounces of
  gold

- Bankable feasibility study completed

- Several key project milestones already achieved

- First gold pour expected mid-2006 with forecast peak production
  rate of 155,000 ounces per year in year two

- Opportunities to pursue other projects in China

David Netherway, President and Chief Executive Officer of Afcan, said:

"China offers many opportunities to become involved in gold projects.With over 1 million ounces of proven gold resources and significant upside potential, the Tanjianshan Gold Project is a particularly exciting opportunity.I believe Afcan's management team has the necessary experience and cultural relationships to successfully develop Tanjianshan and to build a portfolio of gold producing assets within China."

Introduction

Afcan Mining Corporation is a mining company focused on the exploration and development of gold and base metal deposits. The Company's principal property asset, the Tanjianshan Gold Project, is located approximately 80 kilometres northwest of Dachaidan in Qinghai province, northwest China.

The Company also possesses a number of other gold exploration licenses located in Mali and Sierra Leone, one phosphate exploration licence in Burkina Faso and one nickel exploration licence in Guinea. These assets are at a less advanced stage of exploration.

The Company's common shares are traded on the TSX under the trading symbol "AFK".

TANJIANSHAN GOLD PROJECT

Ownership

The Tanjianshan Gold Project is owned by Qinghai Dachaidan Mining Limited ("QDML") in which Afcan has an 85% interest through a wholly owned subsidiary TJS Limited.The remaining 15% is owned by Afcan's Chinese partners.The relationship between TJS and its Chinese partners is governed by a joint venture contract.Afcan's effective equity interest in the Tanjianshan Gold Project increases to 87.5% if its total investment is greater than US$35 million, and 90% if it is greater than $50 million.

QDML has a board of directors of which the Chairman is David G. Netherway, President and Chief Executive of Afcan.

Project Asset and Development

The Tanjianshan Gold Project consists of four contiguous exploration licenses: Jinlonggou, Qingshan, Xijingou and Qinlongtan and two mining permits for the Jinlonggou and Qinlongtan deposits located within the area covered by the related exploration licenses. Sufficient infrastructure consisting of power supplies, water, road and rail transport and communications is already available locally. It is anticipated that the workforce requirements will also be met from the available local population.

The Tanjianshan Gold Project has an estimated measured and indicated resource in excess of 1 million ounces of gold with an average grade of 4.45 grammes per tonne.

Afcan has completed a Bankable Feasibility Study which projects that the Company can develop and operate a gold mine profitably. The development capital cost of the project has been estimated at $50.2 million.The Company has mandated Dominick & Dominick in Canada and Macquarie Bank of Australia to raise the debt finance for the project.

Detailed design of the mine plant has begun and the Company has purchased a SAG mill which is being refurbished and is expected on site in the fall of 2005.Civil works will be completed before the end of 2005 ready for plant construction.

First gold pour is expected in mid-2006 with production projected to reach 155,000 ounces of gold in year two, with an average of 103,000 ounces over the 8 year mine life at an estimated total operating cost, including royalty, of $245 per ounce.

Exploration upside

A key aspect of Afcan's growth strategy will be the continued exploration of the Tanjianshan Gold Project area to delineate additional resources and reserves.Currently, inferred resources on the Qinlongtan and Jinlonggou deposits are estimated at 297,000 ounces.There are 23 known unexplored gold anomalies on the licence. A small amount of additional drilling on two targets within 750 meters of Jinlonggou is expected to confirm continuity of the ore body and increase the resources.Landsat interpretation shows new anomalies and supports geochemical anomalies.

Management

Afcan has an established and experienced management team comprising individuals with considerable experience in mine development and mineral exploration.Key members of the Board include:

Benoit La Salle CA, (Non-Executive Chairman). Mr. La Salle is the Chief Executive Officer and Chairman of Semafo Inc. (a TSX listed gold mining company).He is a chartered accountantand is a member of the Quebec Order of Chartered Accountants, the Canadian Institute of Chartered Accountants and the Order of Chartered Administrators of Quebec.

David Netherway, (President and Chief Executive Officer).Mr. Netherway is an Australian mining engineer with nearly 30 years of experience in the mining industry and has been involved in the development of four mines including the Kiniero Gold Mine in Guinea (which officially opened in April 2002), the Iduapriem Gold Mine in Ghana and the Siguiri Gold Project in Guinea.

Peter Hooper (Chief Operating Officer).Mr. Hooper is a mining engineer and experienced mine manager. Mr. Hooper currently serves on the board of directors of a number of companies including Atlantic Salt Corporation, Sandy K Silver Mines and Canamafrica Platinum Corporation Pty Ltd.

Frank Chen (Chief Financial Officer).Mr. Chen earned a Master of Business Administration from the University of Western Ontario  Richard Ivey School of Business.

Paul Skayman (Manager - China)Mr Skayman is an Australian metallurgical engineer who has extensive experience of constructing gold plants.He has been involved in 4 major gold mines over the last 10 years in West Africa.He was the Project Manager of the Kiniero Gold Mine in Guinea.

In addition to the Chairman, there are four additional non-executive directors.

Corporate Strategy

Utilising the management's extensive knowledge and experience of the
mining industry, and its key strategic cultural relationships in
China, Afcan's plans to:

- Develop and produce the proved gold resources on the
  Tanjianshan Gold Project

- Explore for and bring into production significant additional
  resources on the Tanjianshan Gold    Project

- Identify further gold prospects in China

Financial information

At the present time, Afcan is in an advanced stage of exploration and development and has no revenue generating activities.In the financial year ended 31 December 2004, Afcan reported a net loss of US$1.43 million (2003: US$0.31 million).As at 31 December 2004, the Company had cash and cash equivalents of US$10.16 million (2003: US$6.45 million) and total assets of US$22.62 million (US$13.31 million).

Reasons for the Admission

The Directors believe that Admission will be an important step for the Company.It is anticipated that a listing on AIM will raise the profile of the Company considerably.It is also anticipated that, following Admission, the Company will achieve a broader shareholder base and increase liquidity in the trading of its shares by attracting investors from the UK and Europe.Further, the Directors believe that the Company's growth potential will be significantly enhanced by Admission.

AFCAN is an emerging gold producer in China and owns 85% of the TJS Project at Tanjianshan in Qinghai Province.A Bankable Feasibility Study has been completed on the Project, detailed design has commenced.There are an additional 23 anomalies on the licence area of 341 km2 that are being explored.Afcan growth is focused on exploration and development of its advanced projects.

THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

AFCAN Mining Corporation (TSX:AFK)