AFCAN MINING CORPORATION

AFCAN MINING CORPORATION

March 17, 2005 11:21 ET

AFCAN Closes Purchase of SAG Mill for China


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: AFCAN MINING CORPORATION

TSX SYMBOL: AFK

MARCH 17, 2005 - 11:21 ET

AFCAN Closes Purchase of SAG Mill for China

TORONTO, ONTARIO--(CCNMatthews - March 17, 2005) - AFCAN (TSX:AFK) is
pleased to announce that it now closed the purchase of a second-hand SAG
mill for the TJS Project in China.

Afcan announced on the 17th February that it had an option over the
mill. This option has now been exercised and the balance of the purchase
price of US$783,000 has been paid.

The 16' x 35' mill is located in South Africa and will now be
re-furbished before being shipped to China together with a new variable
speed drive unit. The total cost of the refurbished mill and new drive
will be approximately US$2.0 million.

This represents a saving of approximately US$1.5 million on the price of
a new mill, but more importantly it can be delivered to site by the 3rd
quarter of 2005. A new mill would not reach site until May 2006 which
would seriously delay construction of the project.

The President/CEO David G Netherway said: "The closing of this mill
purchase is another very important milestone for Afcan and shows the
commitment of Afcan to push ahead with the construction of the project."

AFCAN is an emerging gold producer in China and owns 85 % of the TJS
Project at Tanjianshan in Qinghai Province. A Bankable Feasibility Study
has been completed on the Project with construction starting in 2005.
There are an additional 23 anomalies on the licence area of 341 km2 that
are being explored. Afcan growth is focused on exploration and
development of its advanced projects.

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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
    http://www.afcan-mining.com
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