AFCAN MINING CORPORATION

AFCAN MINING CORPORATION

January 11, 2005 13:08 ET

AFCAN: Mt Kakoulima Nickel Project in Guinea, Details of Updated Drilling Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: AFCAN MINING CORPORATION

TSX SYMBOL: AFK

JANUARY 11, 2005 - 13:08 ET

AFCAN: Mt Kakoulima Nickel Project in Guinea, Details
of Updated Drilling Results

TORONTO, ONTARIO--(CCNMatthews - Jan. 11, 2005) - Further to the Press
Release of December, 16th, 2004, Afcan (TSX:AFK) is pleased to announce
that the results of the drilling program confirm the initial concept of
a basal contact structure with disseminated sulphide zones intersected
in holes AF0007 to AF0012 (see below for details).

Drilling on the north grid of the Mt. Kakoulima property has been
successful in confirming the initial concept that the base of the Kaloum
Igneous complex (KIC) dips to the south (inwardly) along its northern
contact. The intrusion is approximately 60 kilometres long. The basal
contact of the intrusion dips approximately 45 degrees inward, and has
the potential to provide traps for concentrating sulphides. The rock
types encountered in the KIC are consistent with other mineralized
mafic-ultramafic intrusions and the contamination of the intrusion by
gneissic wall rocks is a positive feature. The KIC rocks along its basal
contact host local brecciation associated with disseminated sulphides.

Diamond drill holes AF0007 to AF0012 have intersected disseminated
sulphide mineralization at the base of the intrusion in favourable
magnesian host rocks over a 1.6-kilometre strike length. Assays will
determine the nickel (as well as copper, cobalt and platinum group
elements) content of the sulphides. Initial assays are expected later
this month.

The Project is held by FNX Afcan Guinee S.A.R.L., a Guinea company
which is now 100% owned by Afcan Barbados Limited a wholly-owned
subsidiary of Afcan Mining Corporation - see Press Release of December
16th, 2004.

On February 4th, 2004, Afcan signed an Option Agreement with FNX Mining
Company Inc. (FNX - TSX & AMEX) on the Mt Kakoulima Ni-Cu-Co-PGE
exploration project in Guinea, West Africa. The project area covers
295.5 km2 and is located 30 km from Conakry, the capital of Guinea.

Under the terms of the agreement, Afcan grants FNX the option to acquire
a 100% interest in the licences:

- by incurring a total of US$2,400,000 of exploration expenditures on
the licences over a five year period, and

- by completing a bankable feasibility study or incurring further
exploration or development expenditures in an amount of US$2,000,000.

After FNX has incurred expenditures in the aggregate of US$4,400,000,
the option will be exercised and FNX will have acquired a 100% interest
in the licences, and Afcan's interest shall be replaced by a 3% Net
Smelter Return.

The initial discovery at Mt. Kakoulima was made by Les Mineraux SGVS.A.
in 1997, when drilling intersected a number of narrow, high grade
Ni-Cu-Co-PGE veins in gabbro high in the stratigraphy of the Kaloum
Igneous Complex. The best of these intersections graded 4.72% Ni, 1.51%
Cu, 0.22% Co and 3 g/t PGE over 0.51 meters. Subsequent exploration
concentrated on the gabbro-hosted mineralization and included surface
geochemistry, ground and borehole geophysical surveys and diamond
drilling as a follow-up to the initial discovery

The most productive massive Ni-Cu-Co-PGE sulphide environments commonly
occur at the base of layered mafic-ultramafic intrusions similar to the
KIC. The basal contact of the KIC is not exposed and to date has not
been explored for massive Ni-Cu-Co-PGE sulphide deposits. The FNX
programme will focus on nickel-rich sulphide targets at the basal
contact of the igneous complex.

FNX (through its joint venture partner Maple Minerals Corporation)
undertook initial exploration work on the project area before the wet
season in Guinea and started drilling in November.

Catharine Farrow, PhD, PGeo (Chief Geologist, FNX) is acting as the
Qualified Person for the Mt. Kakoulima project.

AFCAN is a China focused company and owns 85 % of the TJS Project at
Tanjianshan in Qinghai Province, China. A Bankable Feasibility Study
will be completed on the Project by January 2005 with construction
starting shortly after. There are an additional 23 anomalies on the
licence area of 341 km2 that are being explored. Afcan is also looking
at other opportunities in China.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    AFCAN Mining Corporation
    David G Netherway
    President-CEO
    (416) 360-3404
    or
    AFCAN Mining Corporation
    Benoit La Salle
    Chairman
    (514) 744-4408
    info@afcan-mining.com
    Website : http://www.afcan-mining.com
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