Anaconda Gold Corp.

Anaconda Gold Corp.

November 17, 2005 16:30 ET

Anaconda Gold Resource Study Outlines High Grade Resources at Damoti Lake Project

TORONTO, ONTARIO--(CCNMatthews - Nov. 17, 2005) - Anaconda Gold Corp. (TSX VENTURE:ANX) is pleased to announce the results from a resource estimate for the Damoti Lake gold project located about 200 kilometers north of Yellowknife, Northwest Territories.

Since acquiring an option on the Damoti Lake project in May, 2003, Anaconda has completed 4,191 m of drilling in 52 holes. These drill results were successful in delineating zones of high-grade gold mineralization within the Horseshoe deposit.

The resources outlined in the Horseshoe zone are accessible via a decline ramp and two underground levels which were established by another company in the early 1990's.

At a cut-off of grade of 8.0 g/t Au, contained gold of 34,200 ounces are reported in the measured and indicated category in addition to 9,400 ounces of gold in the inferred category.

Average grade of the measured and indicated resource is 26.17 g/t gold and 16.38 g/t gold for the inferred resource.

The November 2005 resource estimate below (1) is calculated at a
cut-off grade of 8.0 g/t gold.
Classification Tonnes Au(g/t) Au (Ounces)
Measured 20,300 28.88 18,900
Indicated 20,300 23.46 15,300
Measured & Indicated 40,600 26.17 34,200
Inferred 17,800 16.38 9,400
(1) Mineral resources which are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources
may be materially affected by environmental, permitting, legal,
title, taxation, sociopolitical, marketing, or other relevant issues.

The resource calculation is based on US$400/oz gold, a $US0.80 Canadian dollar exchange rate, C$65/tonne mining cost, C$35/tonne processing and C$20/tonne G&A costs with an overall process recovery of 92%. Grade capping for the purpose of this calculation was performed at 150 g/t gold for all zones. A total of 1,052 assays were constrained for the resource estimate, of which 21 or 2.0% were capped resulting in coefficients of variation for 1.0 metre composites ranging from 1.31 to 1.45.

Search ellipsoid ranges determined from variography were 12m down dip and 10m along strike. Most of the drilling was completed on approximate 5m centres, resulting in a large portion of the resource being classified as measured and indicated.

Tonnages were calculated using a bulk density of 3.20 tonnes per cubic metre which is the average of measurements from representative samples submitted to ALS Chemex. Modeling grade blocks were sized at 2.5m x 2.5m x 2.5m with variable percentage of domain inclusion so as to accurately represent model volumes. Assaying of Anaconda's drill core was completed by ALS Chemex of Vancouver, B.C.

The mineral resource in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council in November, 2004.

The November 2005 resource estimate was completed by independent mining consultants and Qualified Persons, Eugene Puritch, P.Eng. and Dr. Wayne Ewert, P.Geo. of P&E Mining Consultants Inc. of Brampton, Ontario. Phillip Walford, P.Geo., is Anaconda's designated Qualified Person for the project.

"The completion of this new resource estimate will form an integral part of formulating our strategy for moving forward at Damoti Lake with our partner Doublestar Resources," Nick Tintor, President and CEO of Anaconda Gold said. "These results, combined with our on-going work, all point to the possibility of a small tonnage, high grade mining operation," he added.

Anaconda Gold Corp has the right to earn a 55% interest in the 3,258 hectare Damoti Lake project from Doublestar Resources by spending $2.5 million over a four-year period.

The statements made in this press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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