Acadian Gold Acquires Tangier Gold Property In Nova Scotia.

Business Editors

TRENTON, Nova Scotia--(BUSINESS WIRE)--Jan. 19, 2004

Acadian Gold Corporation (ADA-TSX-VE) ("Acadian Gold") is pleased to announce that it has entered into a purchase agreement with Erdene Gold Inc. ("Erdene") to acquire a 100% interest in the Tangier Gold Property comprising 77 mineral claims covering 3,080 acres (1,247 ha) located in Halifax County, Nova Scotia. Under the terms of the agreement, Acadian Gold must at closing issue to Erdene 500,000 common shares of Acadian Gold to be released to Erdene in tranches over a three year period. In addition, Acadian Gold will issue to Erdene 100,000 warrants exercisable for a two year period following closing, with one warrant and $0.50 entitling Erdene to one common share of Acadian Gold. Erdene also has the right to back in for a 30% interest in the property for a two year period following closing by paying Acadian Gold the greater of $63,000 cash or 30% of exploration expenditures incurred by Acadian Gold. Erdene is a private Halifax based company focused on gold exploration in Mongolia.

The transaction is subject to due diligence, board and regulatory approvals. Closing is expected to take place on or before February 29, 2004.

The Tangier Gold Property was the site of the first gold discovery in Nova Scotia in 1860 resulting in a gold rush the following year which attracted over 600 miners and prospectors. Reports indicate that in the period up to 1927, over 114 shafts were sunk to an average depth of 22 metres (72 feet) yielding in excess of 29,000 ounces of gold. The property was the target of a major exploration and development program between 1986 and 1989 by Coxheath Gold Holdings Limited ("Coxheath"), including extensive diamond drilling, sinking of a decline and associated underground development, and bulk sampling. Although the bulk sample of 21,800 tonnes resulted in an overall yield of only 1,596 ounces of gold, it is noteworthy that the final three months of this program resulted in a yield of 1,200 ounces of gold from 2,578 tonnes (for an average recovered grade of 14.5 g/t (0.465 oz/t). Subsequent limited programs were completed on the property in the period 1996-1999 by Tangier Ltd. Partnership and in 2000 by Erdene.

The Tangier Gold Property is situated on a tightly folded, domal, anticlinal structure which is host to approximately 70 gold bearing quartz veins over a width of approximately 200 metres. The Tangier anticline has been traced for approximately 7.3 kilometres (4.5 miles) on the property. The gold bearing veins are proven to be remarkably consistent over strike lengths exceeding 2.5 kilometres (1.5 miles) as well as down dip. Exploration efforts to date were focused primarily on three veins in the Blueberry Hill area, the Marker, Whin and Twin Veins, and various veins in the Strawberry Hill area, 2 kilometres (3.2 miles) to the east. Minimal exploration was conducted in the intervening 2 kilometres.

Considerable knowledge was gained from these exploration campaigns with respect to geological controls on the distribution of economic grade gold mineralization at Tangier. Acadian Gold management believes this knowledge base coupled with the recently developed Australian "Ribbon Model", which the Company is successfully applying at its Forest Hill Property, will be the key to unlocking the gold potential at Tangier.

Of note is the Marker Vein's characteristic of yielding large gold nuggets with sizes up to 20 ounces reported in early records. A collection of excellent specimens from this vein with sizes up to six ounces were purchased by the Museum of Natural History in Halifax from Coxheath in 1989.

Management of Acadian Gold is of the opinion that the gold potential of the Tangier Gold Property is comparable to that of its principal property, Forest Hill, and as such represents an important building block in the Company's strategic plan. Initial efforts by Acadian Gold on this new acquisition will entail a detailed review of the existing large database with a focus on designing an exploration/development program to further define and upgrade confidence levels on reported tonnages and grades.

The acquisition of the Tangier Gold Property is an integral part of Acadian Gold's plan of acquiring gold properties amenable to the ribbon model and this acquisition brings to seven the number of such properties.

Peter C. Webster, P. Geo., is responsible for the management and supervision of the Company's exploration programs and has reviewed the technical information reported in this news release. Mr. Webster is an independent third party geologist, President of Mercator Geological Services Limited and a qualified person as defined by National Instrument 43-101.

For additional information on the Company's properties and activities, please visit our web site at www.acadiangold.ca. If you wish to be added to the Company's email or fax distribution list for future news releases and updates, please contact us at the numbers below.

Shares Outstanding: 35,030,462

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.