Anaconda Gold Completes Bulk Sample Program With Excellent Results.

TORONTO -- Milling at Nugget Pond Produces 1,045 oz. of gold

Anaconda Gold Corp. (TSX VENTURE:ANX) is pleased to report that the company has successfully completed its bulk sampling program at the Pine Cove project, profitably producing 1,045.35 oz. of gold of which 914.45 ounces were sold yesterday at US$448 per ounce.

Anaconda has the right to earn a 60% interest in the project from New Island Resources Inc. (TSXV-NIS). The 2,816-hectare Pine Cove project is located 6 km east of BaieVerte, Newfoundland.

Anaconda signed a milling agreement in September with Richmont Mines Inc., for the processing of ore at Richmont's Nugget Pond mill located approximately 50 km from the Pine Cove site. During the program, Anaconda mined and delivered 6,337 dry tonnes of ore from the future Pine Cove open pit of which were processed by Richmont Mines.

The milling generated excellent results, producing 1,045.35 ounces of gold and yielding a recovery of 96.0%. Importantly, the test program allowed Anaconda to test and successfully confirm its resource block model and some of the metallurgical attributes of the Pine Cove ore.

"Our grade reconciliation between that predicted by the block model and that experienced in the blast holes and in the mill was excellent" Phillip Walford, Vice President - Exploration of Anaconda Gold, said.

Block Model Grade (g/t)            Mill Grade (g/t)
        -----------------------            ----------------
                5.4                               5.3

Overall costs, including trucking and loading charges and custom milling charges, resulted in a total cash cost of $US290 per ounce.

"The bulk sample program, which generated a profit from our first gold production, is a milestone for our company," Nick Tintor, President of Anaconda Gold said. "Pine Cove has all the elements of a profitable gold mining operation and we're more committed than ever to bringing our first mine to production in 2005," Tintor added.

Anaconda anticipates completing an independent feasibility study in December at which time a production decision will be made.

Anaconda Gold is an emerging gold producer with advanced stage gold projects in Newfoundland and in the Northwest Territories and exploration projects near Carlin, Nevada and in northwestern Ontario.

John Cook, P.Eng., Chairman of Anaconda Gold, is Anaconda's Qualified Person as defined by NI 43-101.

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.

Anaconda Gold Corporation (TSX VENTURE:ANX)