Anaconda Gold to use Gekko Processing at Pine Cove Gold Mine.

TORONTO -- Anaconda Gold Corp. (TSX VENTURE:ANX)(FRANKFURT:GJ2) is pleased to announce that it has engaged Gekko Systems PTY Ltd., to manufacture, supply and install a Gekko gravity plant at the company's Pine Cove gold project located near Baie Verte, Newfoundland.

For the past three months Anaconda's management has reviewed a variety of additional processing scenarios including the use of a dense media separation (DMS) plant to preconcentrate the ore, proposed by DRA, a South African engineering company. After careful consideration of all the test work results, Anaconda has decided to utilize the gravity process equipment proposed by Gekko Systems, as defined in the feasibility study and has decided to order this long delivery item.

The Gekko gravity module will contain a feed distributor, a primary Inline Pressure Jig (IPJ1500), a cleaner Inline Pressure Jig (IPJ1000), three pumps, two pump-boxes and a final concentrate hopper. The nominal feed rate will be 27 tph. but the module is designed to receive up to 40 tph of feed. All electrics and piping will be included. The gravity module will cost C$321,000.00 FOB the factory in Australia and delivery is quoted as 18 weeks ex-works.

The IPJ is a movable screen concentrator, which pulses up and down to separate the heavy and light minerals. The IPJ can produce a mass concentrate yield between 0.5 and 40% of feed. The yield is adjusted using the fully integrated control system attached to the side leg of the IPJ.

The module will be skid mounted and ready to install on site at Pine Cove. The concentrate from the cleaner jig will then proceed to further treatment and gold recovery.

"Pending the completion of permitting, we remain on track to bring Pine Cove to production by the fourth quarter of this year," John Cook, Chairman, added.

Submissions have been made to the Government of Newfoundland and Labrador regulatory bodies for the development of the mine and a Mine Development Plan, Environmental Protection Plan and Human Resources Plan have been submitted.

Various responses have been received from the agencies and replies to these are now being prepared. A Closure Plan has been drafted ready for submission when the Development Plan is accepted. Submissions and further information is being prepared for the Federal Department of Fisheries and Oceans and Transport Canada.

Pine Cove hosts probable reserves of 2,332,676 tonnes grading 2.76 grams gold per tonne for 207,000 oz. of gold. Inferred resources total 66,700 tonnes grading 2.43 grams gold per tonne for 5,200 oz. of gold. The above reserves and resources were prepared utilizing a cut-off grade of 0.95 grams gold per tonne.

The reserve estimate was completed by independent mining consultants and Qualified Persons, Eugene Puritch, P.Eng. and Dr. Wayne Ewert, P.Geo. of P&E Mining Consultants Inc. of Brampton, Ontario. (See Anaconda press release dated April 28, 2005 at www.anacondagold.com or at www.sedar.com).

Anaconda Gold has a 30% interest in the Pine Cove project and has the right to earn an additional 30% interest by arranging project financing and bringing the property to commercial production. New Island Resources Inc. (TSX VENTURE:NIS) is Anaconda's partner at Pine Cove.

The terms of the underlying agreement also provide Anaconda with 100% of all project cash flows until capital payback is achieved, recovery of certain sunk costs and project management fees for acting as project operator.

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 resp onsibility for the adequacy or accuracy of this release.

Anaconda Gold Corp. (TSX VENTURE:ANX)