Anaconda Drills Additional High Grade Intersections At Damoti Lake Gold Project.

TORONTO -- Intersects 13.92 m grading 32.61 grams gold per tonne

Anaconda Gold Corp. (TSX VENTURE:ANX) is pleased to report that drilling at its Damoti Lake gold project, located 200 km north of Yellowknife, N.W.T. continues to generate high grading intersections.

Anaconda has the right to earn a 55% interest in the 4,660-hectare project from Doublestar Resources (TSXV:DSR) by spending $2.5 million over a four-year period.

Hole D04-343 intersected 13.92 m grading 32.61 grams gold per tonne from a shallow depth of 41.12 m to 55.04 m. Included in the intersection was a much higher grading 5.65-m section assaying 50.63 grams gold per tonne. Importantly, the entire intersection was mineralized across each assay sample section.

Full details are included in the table below.

Detailed Hole D04-343

From (m)            To (m)           Intersect (m)       Grade (g/t)
 41.12               41.56               0.44                9.33
 41.56               41.80               0.24               14.00
 41.80               42.30               0.50                2.62
 42.30               42.70               0.40               10.75
 42.70               43.27               0.57                0.25
 43.27               43.56               0.29               38.50
 43.56               44.05               0.49               15.00
 44.05               44.81               0.76               13.60
 44.81               45.41               0.60               25.50
 45.41               46.00               0.59               27.60
 46.00               46.94               0.94               36.90
 46.94               47.10               0.16               30.60
 47.10               47.28               0.18                1.71
 47.28               47.63               0.35                5.52
 47.63               47.79               0.16               22.70
 47.79               48.42               0.63               55.50
 48.42               48.90               0.48               11.90
 48.90               49.39               0.49               16.60
 49.39               49.70               0.31               33.20
 49.70               50.12               0.42               48.60
 50.12               50.64               0.52               89.50
 50.64               51.16               0.52               10.85
 51.16               51.76               0.60               98.11
 51.76               52.29               0.53               21.10
 52.29               53.04               0.75               54.10
 53.04               53.40               0.36               45.30
 53.40               53.64               0.24               43.30
 53.64               54.32               0.68               49.60
 54.32               55.04               0.72               44.60

Anaconda completed 1,421 m of drilling in 20 holes during this first phase program which focused on confirming and better defining resources in the Horseshoe zone deposit.

Following a review of past drill results and recent drill data from Anaconda's current program, management now believes the high grade lenses are sub parallel to the dip of the iron formation and have more down dip and down plunge potential than was previously believed.

The exploration implications are that much more potential now exists for additional mineralization at depth.

"Our new interpretation of the mineralized zones at Horseshoe has positive implications for guiding our property-wide exploration efforts and additional drilling will be required to confirm these new ideas," Philip Walford, Vice President - Exploration, said. Mr. Walford is Anaconda Gold Corp's Qualified Person, as defined by National Instrument 43-101.

From 1992 to 1997, more than 40,000 m of drilling was completed by Quest International Resources and other previous operators on a property-wide exploration program which tested numerous gold showings and targets.

This historic work, completed in 1997, led to the estimate of resources in the Horseshoe zone totaling 455,685 tonnes grading 15.97 grams gold per tonne, according to Quest International Resources, the previous operator. Although these historical resource estimates were not completed in accordance with National Instrument 43-101 standards, management of Anaconda believe these historical results to be relevant.

Other significant high grading intersections from this drill program
are listed below.

Hole              From (m)        To (m)     Intersection       Grade
                                                  (m)           (g/t)
---------------------------------------------------------------------
D04-325              49.1           50.1           1.0           8.05
---------------------------------------------------------------------
D04-335             55.70          56.55          0.95           7.28
---------------------------------------------------------------------
D04-340             24.59          29.58          4.99          25.07
---------------------------------------------------------------------
D04-341             43.52          44.86          1.34           50.0
---------------------------------------------------------------------
                    55.48          59.41          4.45          20.25
---------------------------------------------------------------------
                    62.95           64.1          1.15          20.17
---------------------------------------------------------------------
D04-343             41.12          55.04         13.92          32.61
---------------------------------------------------------------------
including           49.39          55.04          5.65          50.63
---------------------------------------------------------------------

True thicknesses for the holes listed above are difficult to estimate at this time and will require additional drilling before an accurate determination can be made.

Exploration holes 324, 336, 339 and 342 did not intersect results of any significance. Results from the balance of the six remaining holes are pending and will be released on receipt of assays.

The Horseshoe zone is characterized by high grade gold mineralization associated with sulphides and quartz veining hosted in the fold closure of an amphibolite iron formation. This favourable iron formation unit strikes across the Damoti Lake claims for more than 12 km. At least 13 exploration targets outside of the Horseshoe zone have been identified warranting additional exploration work.

In 1996, limited underground development via a decline ramp to the 40-m level was successful in delineating one of the high grade lenses of gold mineralization in the Horseshoe zone. The decline ramp remains in good condition and provides convenient access to the mineralized zones for future underground exploration.

Assays were completed by ALS Chemex, an accredited assay lab which has attained ISO 9002 certification for all of its North American testing facilities.

Anaconda's other advanced stage gold project, Pine Cove located in Newfoundland, is the subject of a new reserve study expected to be completed in the second quarter of this year.

The statements made in this press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX Venture Exchange  has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

The historical resource estimates referred to above were prepared prior to NI 43-101 by or on behalf of previous operators. The relevance, reliability and comparability of these previous estimates to current standards have not yet been determined. In some cases, the primary data no longer exists or is incomplete and some holes may require re-drilling. Anaconda Gold Corp. has not done the work necessary to verify the resource categories and is not treating them as current resources under NI 43-101. As a result, the public should not rely on these estimates.