Anaconda Gold Corp.

Incorporated in 1994, Anaconda Gold Corp. is a Canadian mining company focused on exploring for and developing mineral deposits into profitable mines. Anaconda is engaged in the business of acquiring and exploring precious metal properties in Newfoundland, the Northwest Territories, Nevada and Ontario with a focus on gold deposits and exploring and developing such properties independently, or through joint ventures, as appropriate.

Anaconda has the right to earn a 60% interest in the 2,816 hectare Pine Cove project in Newfoundland from New Island Resources (NIS:TSX-V) by spending $500,000 on updating the mine plan, reserve and metallurgical studies and is working towards the development of its first gold mining operation. A new resource study completed at Pine Cove in July 2004 outlined 209,500 ounces of gold in the indicated category in addition to 59,200 ounces of gold in the inferred category. Average grade of the indicated resource is 2.94 grams per tonne gold and 2.20 grams per tonne gold for the inferred resource.

The company signed an agreement with Richmont Mines Inc. (RIC:TSX) in September 2004 for the processing of ore at Richmont’s Nugget Pond mill located approximately 50 km from the Pine Cove site. As part of a bulk sampling program, approximately 6,500 tonnes of Pine Cove ore was shipped to Nugget Pond for processing. During November 2004, Anaconda successfully completed its bulk sampling program at Pine Cove producing 1,045.35 ounces of gold, of which 914.45 ounces were sold at a price of US$448 per ounce. This sale represented a significant achievement as the company generated a profit from its first gold production.

In January 2005, after completion of a positive feasibility study, Anaconda made a production decision on Pine Cove. The company earned a 30% interest in the project by making this assessment by December 31, 2004, and has the right to earn an additional 30% interest by arranging project financing and bringing the property to commercial production. Highlights from the feasibility study include a mine life of six years with total gold production of 180,000 ounces with 38,000 ounces in the first year. Earnings before interest and taxes are anticipated to be approximately $24 million with pre-production capital of $11.4 million and an internal rate of return of 24%. Life of mine cash cost per ounce is expected to be US$283 with the cash cost in the first year estimated at US$238 per ounce at a gold price of US$400 per ounce.

The company’s other principal property is known as the Damoti Lake gold project in which Anaconda is earning a 55% interest from Doublestar Resources Ltd. (DSR:TSX-V) by spending $2.5 million over a four year period. Located 200 km north of Yellowknife, in the N.W.T. and covering 4,660 hectares, Damoti Lake hosts high grade gold mineralization in banded iron formations. During the year ended May 31, 2004, Anaconda completed a first phase drilling program on the Horseshoe zone deposit at Damoti Lake which generated several high grade gold intersections. A second phase drill program is in progress, which upon completion, will allow Anaconda to complete a resource study. Damoti Lake, despite its small land base, hosts very high grading gold resources. Historical resource estimates completed in 1997 by another company outlined 455,685 tonnes grading 15.97 grams gold per tonne. Anaconda’s drilling has confirmed the high grade nature of gold mineralization at Damoti Lake with intersections such as 13.92 metres grading 32.6 grams gold per tonne in one hole. In 2005 the company plans to complete a new resource study for the high grade Horseshoe zone deposit and to initiate and complete environmental permitting leading to a production decision by the fourth quarter of 2005.

During June 2004, Anaconda completed a private placement of flow-through and non-flow-through units. Gross proceeds of $2,562,000 were raised through the sale of 6.6 million flow-through units at a price of $0.32 each and 1.5 million non-flow-through units at price of $0.30 per unit. Each flow-through unit consists of one flow-through common share and one-half of one common share purchase warrant. Each whole flow-through warrant is exercisable into one additional non-flow-through common share at a price of $0.40 on or before June 16, 2005. Each non-flow-through unit consists of one common share and one-half of one common share purchase warrant. Each whole non-flow-through warrant is exercisable into one additional non-flow-through common share at a price of $0.40 per share on or before June 16, 2008.

Also during June 2004, Anaconda acquired an option to purchase a 100% interest in the Dorset gold property in Newfoundland. The company has the right to earn a 100% interest in the property by spending $1.25 million on exploration over a four year period and issuing $350,000 in shares and making cash payments of $275,000. Dorset comprises 277 claims or 6,925 hectares located immediately south of and adjacent to Anaconda’s Pine Cove project.

Anaconda also has the right to earn a 100% interest in the 196 claim Horse Mountain project in the Carlin Trend, Nevada. This property was optioned to the Hunter Dickinson Group Inc., who then assigned it to a new company, Quicksilver Ventures Inc. (QSV:TSX-V) in September 2004. Quicksilver can earn a 55% interest by spending $1.5 million on exploration over a six year option period and making all underlying option payments and holding costs. By taking the project to bankable feasibility, Quicksilver can earn an additional 15% interest. A geology report completed by Hunter Dickinson concluded that the type of carbonate rocks which host giant Carlin-type deposits on the northern Carlin Trend could occur at depths of 575 - 825 metres in the Horse Mountain area. Anaconda believes the Horse Mountain project is one of the best exploration plays in Nevada and provides the company with tremendous exploration leverage in one of the world’s most prospective gold mining camps.

The company also owns a 100% interest in the 1,696- hectare Borthwick Lake project located 200 km north of Red Lake, Ontario. The Borthwick claims include the former producing Berens River gold mine, which operated from 1939 - 1948 and produced 157,696 ounces of gold. A geophysical survey completed by Anaconda last year identified several exploration targets requiring follow up work. Located 325 km north of Red Lake, Ontario, the 448 hectare Lingman Lake project was optioned to Osprey Gold Corp. in September 2004. Osprey can earn a 100% interest in the claim group by paying Anaconda $500,000 cash and issuing 400,000 shares in the company. Anaconda will also retain a 2% net smelter return royalty on the claims.