Anaconda Gold-Clarification of Prior Feasibility Study and Update of Reserves at Pine Cove.

TORONTO -- At the request of the Ontario Securities Commission, Anaconda Gold Corp. (TSX VENTURE:ANX) issues the following clarification with respect to its press release issued on March 2, 2005 and Feasibility Study filed on February 8, 2005, and an update on its reserves at the Pine Cove project.

The Pine Cove gold project, located 6 km northeast of Baie Verte, Newfoundland, was the subject of a Feasibility Study completed by A.C.A Howe International Limited of Toronto in December 2004 and filed on SEDAR on February 8, 2005 (the "Howe Study"). The Howe Study incorporated an independent report on mineral resources and mineral reserves prepared by P & E Mining Consultants Inc. of Brampton, Ontario. This report also included inferred resources of 392,751 tonnes grading 2.49 grams gold per tonne.

The Howe Study included these inferred resources in their economic cash flow model, which inadvertently contravened NI-43-101 section 2.3 (1) (b) which does not allow the use of any inferred resources in the completion of an economic analysis. The use of inferred resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.

Investors should disregard and not rely on the Howe Study dated December 23, 2004 and filed on SEDAR on February 8, 2005. The Company has revised the Howe Study based on the completion of additional drilling conducted in January and February, 2005 and plans to file a revised Feasibility Study on the Pine Cove project next week.

The additional drilling completed in 2005 at the Pine Cove gold project has resulted in an upgrading of the inferred resources to probable reserves and an improvement in project economics.

These updated mineral reserves and the economic analysis based on these reserves, form part of a revised Feasibility Study now being completed by A.C.A Howe International Limited for Anaconda Gold.

Anaconda completed 943 m of drilling in 12 holes which both in-filled areas of the optimized open pit which contained inferred resources and tested certain zones for extensions.

Revised mineral reserves at Pine Cove based on cut-off grade 0.95 grams gold per tonne and using a 97% mining recovery factor are as follows:

Revised Pine Cove Reserve Estimate
                            March 18, 2005
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                         UNDILUTED
                     PROBABLE RESERVES
Au Price  CUT-OFF  --------------------      WASTE       TOTAL    W/O
  $US/oz  Au (g/t)    TONNES   Au (g/t)     TONNES      TONNES  RATIO
---------------------------------------------------------------------
    $400     0.95  2,091,148      3.08  12,081,290  14,172,438  5.78
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---------------------------------------------------------------------
                         DILUTED
                     PROBABLE RESERVES
Au Price  CUT-OFF  --------------------      WASTE       TOTAL    W/O
  $US/oz  Au (g/t)    TONNES   Au (g/t)     TONNES      TONNES  RATIO
---------------------------------------------------------------------
    $400     0.95  2,332,676      2.76  11,839,762  14,172,438   5.08
---------------------------------------------------------------------

The new drilling completed by Anaconda successfully converted most of the inferred resources into probable reserves. A revised economic analysis, based on the revised mineral reserves, has also been completed and will form part of the revised Feasibility Study.

Highlights of the revised economic analysis are as follows:

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                                        2005 Revised
                    2004 Howe Study        Analysis%     Change (+/-)

LOM gold produced:       181,000             183,497            +1.4
Mine life:                   6.0                 6.7           +11.7
First year
 production:              38,000 oz.          38,946 oz.        +2.5
Pre-production
 Capital:                 $11.39 million      $11.39 million
IRR:                        23.9%               24.5%           +2.5
LOM Cash Cost/Oz:         US$283            US$289.9            +2.4
First Year Cash
 Cost/Oz:                 US$238              US$220            -7.6
Gold Price:               US$400              US$400
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Included in the waste tonnage of 11,839,762 tonnes, are 66,700 tonnes of inferred resources grading 2.43 grams gold per tonne. Under NI 43-101 rules, inferred resources cannot be used in a feasibility study economic analysis and as a result these inferred resources have been classified as waste.

Anaconda also commissioned A.C.A Howe International to examine the potential economic impact of mining and processing the 66,700 tonnes of inferred resources grading 2.43 grams gold per tonne which are currently designated as waste tonnage in the optimized open pit model. These inferred resources represent 2.8% of mineral resources at Pine Cove. This assessment represents additional potential at Pine Cove to the revised base case scenario outlined above.

Highlights of the Potential Economic Scenario including Inferred Resources are as follows:

LOM gold produced:188,434 oz.

IRR:25.8%

LOM cash cost/oz.:US$286

As a result of the inclusion of inferred resources and the preliminary nature of the analysis, the potential quantities of gold in the inferred resources which are included within the open pit cannot be referred to as "ore" or as "mineral reserves". Due to the uncertainty which may attach to inferred resources, there is no assurance that inferred resources will be upgraded to measured and indicated resources or proven and probable reserves, as a result of continued drilling. The economic analysis contained herein is an assessment which is preliminary in nature and is based partly upon inferred resources that are too speculative geologically to have economic considerations applied to them to enable them to be categorized as mineral reserves.

Anaconda Gold has a 30% interest in the 2,816-hectare 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. (TSXV-NIS) is Anaconda's partner at Pine Cove.

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

Anaconda Gold made a formal production decision for the Pine Cove project in late December 2004 (see press release dated January 21, 2005) and is continuing with its permitting, provincial regulatory and mine planning efforts. Anaconda filed an environmental registration and mine plan document with the Newfoundland provincial government on March 7, 2005 as part of its operating permit application.

Pending receipt of governmental approvals and the completion of project financing, Anaconda will commence mine construction in 2005.

Wayne Ewert, PhD, P.Geo., is the lead author of the revised Feasibility Study and is the Qualified Person as defined by NI-43-101, and has reviewed the content of this press release.

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)