AFCAN MINING CORPORATION
TSX : AFK

AFCAN MINING CORPORATION

August 10, 2005 14:20 ET

AFCAN: Results for the Period Ended June 30, 2005

MONTREAL, QUEBEC--(CCNMatthews - Aug. 10, 2005) - AFCAN (TSX:AFK) is pleased to announce its results for the period ended June 30, 2005:



Highlights

- Compromise Agreement signed with Eldorado Gold Corporation
("Eldorado") for the acquisition of all of the issued and
outstanding shares of the Company.
- Loan Facility Term Sheet signed with Eldorado for Afcan to borrow
from Eldorado an amount of up to US$15 million.
- Commencement of the construction of the TJS Gold Project in May
2005.


Financial results

The following is a brief summary of Afcan's financial results for the six-month period ended June 30, 2005. Complete details of these financial statements and the accompanying MD&A are available on the Afcan web site at www.afcan-mining.com as well as on SEDAR at www.sedar.com.

For the period ended June 30, 2005, the net loss amounted to $2,384,209 ($0.02 per share) compared to a net loss of $795,628 ($0.01 per share) for the same period in 2004. Cash used for operating activities, before net changes in non-cash working capital items, amounted to $1,825,352 mainly due to the costs for research of financing and administrative expenses. Exercise of warrants and options generated $2,100,329 and reimbursement of long-term debt used cash for $125,785. Investment activities used cash in an amount of $5,714,113 from which $5,342,417 was spent on development and exploration costs for the TJS Gold Project and $197,209 in new vehicles, computers and furniture.

Afcan has 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 Gold Project at Tanjianshan in Qinghai Province.

THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

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