July 19, 2005 10:53 ET

AFCAN Grants Eldorado a Movable Hypothec on its Assets

TORONTO, ONTARIO--(CCNMatthews - July 19, 2005) - AFCAN Mining Corporation (TSX:AFK) ("AFCAN, the "Company" or "we") announces, that in order to secure its obligations under a Loan Facility in an amount of US$15 million made available by Eldorado, AFCAN has agreed to grant a movable hypothec and a general security agreement on its assets, to Eldorado.

The Loan Facility, announced on July 11, 2005, forms part of a Compromise Agreement signed July 8, 2005 whereby Eldorado will acquire all of AFCAN'S outstanding securities (the "Transaction").

Advances under the Loan Facility will be used to fund the continuing construction of the Tanjianshan Gold Project in Qinghai Province in Western China (the "TJS Project") and the Company's obligations relating to the acquisition of the TJS Project. Advances under the Loan Facility shall bear interest at a rate of LIBOR plus 3% per annum.

A Special Meeting of Afcan's shareholders and warrantholders called to approve the Transaction between AFCAN and Eldorado, is scheduled to be held on September 8, 2005. The Transaction is expected to close on September 16, 2005 subject to the approval of AFCAN shareholders and warrantholders, court and other regulatory approvals.

It is expected that following the closing of the Transaction, the position of Chief Financial Officer for Afcan will be abolished. In that context, Afcan's Chief Financial Officer, Mr. Frank Chen, has resigned effective immediately.

Afcan's Board of Directors have agreed to an offer from Eldorado Gold Corporation (TSX: ELD, AMEX: EGO) whereby Afcan will become a wholly owned subsidiary of Eldorado.

Afcan owns 85% of the TJS Project. A Bankable Feasibility Study has been completed on the Project and construction of the 150,000 oz/year mine has commenced. There are an additional 23 anomalies on the licence area of 341 km2 that have been identified.


David G Netherway

President and Chief Executive Officer

Afcan Mining Corporation's shares trade on the Toronto Stock Exchange (TSX:AFK). The TSX has neither approved nor disapproved the form or content of this release.

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