Etruscan Reports Second Quarter Results.

WINDSOR, Nova Scotia -- Etruscan Resources Inc. (TSX:EET) has reported its financial and operating results for the six months ended May 31, 2004. The Q2 2004 Financial Report is available on the Company's website at www.etruscan.com. Operational highlights for the second quarter include:

- The Samira Hill Gold Mine in Niger continued on schedule for a September 2004 start-up. Commissioning of the CIL plant is now in progress;

- The drilling campaign at the Youga Gold Project located in Burkina Faso provided outstanding results and an updated feasibility study is scheduled to be available to secure project financing requirements in the fourth quarter of 2004;

- A significant gold anomaly was delineated on the Djelimangara Permit located in Mali. This gold anomaly is approximately 20 kilometers south of the 10 million ounce Sadiola Gold Mine and is a priority drill target for the fall; and

- Etruscan's 51% owned subsidiary, Etruscan Diamonds (Pty) Ltd. entered into a strategic alliance with Mvelaphanda Exploration (Pty) Ltd., (50% owned by each of Trans Hex Group Limited and Mvelaphanda Resources Limited) whereby Mvelaphanda Exploration has the right to earn a 50% interest in the Tirisano Diamond Mine operation as well as two adjacent properties by making a financial commitment to the properties expected to exceed CDN $46 million

Gold

The Samira Hill Gold Mine is now in the commissioning phase. The plant infrastructure is complete with the power and water supply systems operational. Over the next weeks individual components will be brought on-line as the plant gears up for full commercial production in September of this year. Mining is progressing well with the first full bench of the ore body exposed. Initial commissioning of the plant will utilize waste material from the pit. Once all circuits are verified, lower grade ore will be introduced and gold extraction rates optimized before run of mine ore is processed. Planning is underway for the official opening of the Samira Hill Gold Mine, which is scheduled for October 5, 2004.

Mineable ore reserves from the Samira Hill and Libiri pits as estimated by Resource Service Group Pty Ltd. of Perth, Australia (RSG) total 10.1 million tonnes grading 2.21 grams of gold per tonne from which 618,000 ounces will be recovered over a 6.3 year mine life. Gold production of 135,000 ounces is scheduled for the first year of production at a cash operating cost of US$177 per ounce. The mine is expected to produce an average of 100,000 ounces of gold per year at an average cash operating cost of US$203 per ounce. The Company believes there is good potential to extend the mine life beyond the initial 6.3 year mine life with the exploration and development of additional satellite gold deposits along the Samira Horizon.

A 10,000 meter core drilling program at the Youga Gold Project in Burkina Faso was completed in June. The program focused on improving the geological model and in particular the continuity of the higher grade zones in the A2 Main and A2 West deposits. An updated resource and reserve estimate incorporating this new data is now being prepared by RSG . Metallurgical Design Management of South Africa has been retained to prepare the updated feasibility study by October at which time project financing negotiations can be undertaken. RMB Resources Limited has been mandated to arrange up to US$30 million in project debt financing. Youga is targeted to be in production in early 2006. Etruscan is also evaluating other greenstone belts in Burkina Faso for possible permit applications.

In Mali, the Company recently announced that a significant gold anomaly has been confirmed by an auger drilling program on the Djelimangara Permit. The anomaly has been traced for 2,300 meters with assay values up to 11.6 grams per tonne gold. This is a high priority drill target for Etruscan as the anomaly is situated in the same geologic setting as Sadiola Gold Mine operated by Anglo American Corporation of South Africa. The area was initially investigated because of anomalous gold in soils and the auger samples have now confirmed the location of gold mineralization in saprolite beneath the laterite cap. Mali continues to attract a high level of exploration activity and Etruscan continues to seek new opportunities in this country

Diamonds

In South Africa, Etruscan made the strategic decision to bring in an experienced operating partner at the Tirisano Diamond Mine to accelerate development and to fulfill the significant and pressing requirements of Black Economic Empowerment legislation. Etruscan's 51% owned subsidiary, Etruscan Diamonds (Pty) Limited reached an agreement with Mvelaphanda Exploration (Pty) Ltd. whereby Mvelaphanda Exploration will fund a major capital expansion of the Tirisano Diamond plant to earn a 50% interest in the mine and property. Mvelaphanda Exploration can also earn a 50% interest in two adjacent properties by funding the construction of a plant for the nearby Blue Gum Diamond Deposit. Mvelaphanda Exploration is owned 50% by Trans Hex Group Limited, the second largest diamond producer in South Africa, and 50% by Mvelaphanda Resources Limited, a broadly based black empowerment company focused on the South African mineral sector. Trans Hex has proven expertise in the development and mining of alluvial diamond deposits in southern Africa and will be the operator of the Tirisano Diamond Mine. Mvelaphanda will earn a 50% interest in the three properties through an anticipated financial commitment in excess of CDN$46,000,000 to complete the plant expansion at Tirisano and to construct a new plant at Blue Gum. The agreement is restricted to three properties and does not encompass any other properties held by Etruscan Diamonds in South Africa.

Etruscan also entered into an option agreement during the second quarter with Anglo Operations Limited (Anglo) a division of Anglo American Corporation of South Africa, covering 17 properties in the Lichtenburg and Ventersdorp alluvial diamond districts. Three of the Anglo properties will add to the Etruscan Diamonds' holdings in the Ventersdorp District and the remaining 14 properties are located 100 kilometers to the west situated between two historic alluvial diamond districts: the Lichtenburg District to the north and the Schweizer-Renke District to the south. Recorded diamond production for the period 1904-1984 from these two districts was 11.8 million carats - 9.8 million carats from Lichtenburg and 2.0 million carats from Schweizer-Reneke. Historic drill records indicate that gravels are present throughout the properties and geological interpretations indicate that the ancient river systems responsible for the deposition of the diamondiferous gravels flowed from north to south - from the Lichtenburg District to the Schweizer-Renke District. Etruscan Diamonds believes that the gravel runs may therefore be continuous between the two proven districts and that the Anglo properties have a high potential to host significant volumes of diamondiferous gravels.

Etruscan recently received the results of the 5,000 km2 airborne geophysical survey flown by Bell Geospace over the Ventersdorp District. The survey has delineated a profusion of targets on a scale similar to or larger than the Tirisano and Blue Gum deposits. As mining operations and developments are accelerated by Trans Hex at Tirisano and Blue Gum, Etruscan will conduct exploration on its portfolio of prospective diamond properties with a focus on delineating new reserves.

Etruscan Resources Inc. is a diversified Canadian junior mining company that is focused on the exploration and development of gold properties in West Africa and diamond properties in South Africa. Etruscan's common shares are listed on The Toronto Stock Exchange under the symbol "EET".

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