Anaconda Gold Corp.
TSX VENTURE : ANX

Anaconda Gold Corp.

September 27, 2005 16:32 ET

Anaconda Gold Restates November 30, 2004 and February 28, 2005 Unaudited Financial Statements

TORONTO, ONTARIO--(CCNMatthews - Sept. 27, 2005) -

Prior Bulk Sample Gold Sales Now Capitalized to Project

Anaconda Gold Corp. (TSX VENTURE:ANX) announced that it has today filed restated quarterly financial documents for the periods ended November 30, 2004 and February 28, 2005.

The refiling of these documents was voluntarily undertaken by management.

The following items have been restated in each document:

Changes to the unaudited consolidated financial statements for the six months ended November 30, 2004

The Company previously recorded gold dore sales of $214,967 in the Consolidated Statement of Operations and Deficit. The Company has subsequently changed this presentation by capitalizing the gold dore sales of $214,967 to the Pine Cove property. The effect of this change is (i) a decrease in mineral properties and related deferred costs of $214,967 resulting in a revised balance of $2,880,706 and (ii) decreasing gold dore sales, net of costs from $214,967 to $nil on the Consolidated Statement of Operations and Deficit resulting in a loss for the three months ended November 30, 2004 of $129,931 and a loss for the six months ended November 30, 2004 of $261,942.

Changes to the Management Discussion and Analysis for the six months ended November 30, 2004

This MD&A, filed originally on January 28, 2005, has been restated at September 20, 2005 voluntarily. The Company previously recorded gold dore sales of $214,967 in the Consolidated Statement of Operations and Deficit. The Company has subsequently changed this presentation by capitalizing the gold dore sales of $214,967 to the Pine Cove property for the six months ended November 30, 2004. The effect of this change is (i) a decrease in mineral properties and related deferred costs of $214,967 resulting in a revised balance of $2,880,706 and (ii) decreasing gold dore sales, net of costs from $214,967 to $nil on the Consolidated Statement of Operations and Deficit resulting in a loss for the three months ended November 30, 2004 of $129,931 and a loss for the six months ended November 30, 2004 of $261,942.

Management of the Company have the opinion that these changes will not affect decisions of users of the consolidated financial statements.

Amendments to this document as originally filed include changes to the Quarterly results table for the three months ended November 30, 2004 and the discussion of Results of Operations for the three months ended November 30, 2004.

RESULTS OF OPERATIONS

Original MD&A

During the three months ended November 30, 2004 the Company generated net income of $85,036 as compared to a loss of $$93,563 in the corresponding period in 2003. Revenues increased to $222,846, primarily from the sale of 1,045 ounces of gold, which came from the processing of a bulk sample from the Pine Cove project. Operating expenses were $137,810 compared to operating expenses of $96,483 in the corresponding period in 2003. This reflected increased financing and exploration activities in 2004 compared to 2003 and included $24,100 in management services (2003 - $6,900).

Restated MD&A

During the three months ended November 30, 2004 the Company had a net loss of $129,931 as compared to a loss of $$93,563 in the corresponding period in 2003. Expenses increased to $137,810, primarily from an increase in compensation expenses from the issuance of stock option, an increase in legal, audit and regulatory costs and an increase in management services expenses that was partially offset by a decrease in office, administration and rent expenses compared to operating expenses of $96,483 in the corresponding period in 2003. This reflected increased financing and exploration activities in 2004 compared to 2003 and included $24,100 in management services (2003 - $6,900).



Quarterly Results

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Three Months Ended
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Restated Original
November 30 November 30
2004 2004
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Total revenue $ 7,879 $ 222,846
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Earnings (loss) for the period (129,931) 85,036
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Earnings (loss) per share (0.01) 0.00
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Dividends 0 0
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Current assets 1,933,552 1,933,552
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Mineral properties and
related deferred costs 2,880,706 3,095,673
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Total assets 4,814,258 5,029,225
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Current liabilities 201,285 201,285
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Total long term debt 0 0
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Shareholders' equity 4,612,973 4,827,940
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Changes to the unaudited consolidated financial statements for the nine months ended February 28, 2005

The Company previously recorded gold dore sales of $540,925 in the Consolidated Statement of Operations and Deficit. The Company has subsequently changed this presentation by capitalizing the gold dore sales of $540,925 to the Pine Cove property. The effect of this change is (i) a decrease in mineral properties and related deferred costs of $540,925 resulting in a revised balance of $3,507,300 and (ii) decreasing gold dore sales from $540,925 to $nil on the Consolidated Statement of Operations and Deficit resulting in income for the three months ended February 28, 2005 of $742,364 and income for the nine months ended February 28, 2005 of $480,422.

Changes to the Management Discussion and Analysis for the nine months ended February 28, 2005

This MD&A, filed originally on April 29, 2005, has been restated at September 20, 2005 voluntarily. The Company previously recorded gold dore sales of $540,925 in the Consolidated Statement of Operations and Deficit. The Company has subsequently changed this presentation by capitalizing the gold dore sales of $540,925 to the Pine Cove property for the nine months ended February 28, 2005. The effect of this change is (i) a decrease in mineral properties and related deferred costs of $540,925 resulting in a revised balance of $3,507,300 and (ii) decreasing gold dore sales from $540,925 to $nil on the Consolidated Statement of Operations and Deficit resulting in income for the three months ended February 28, 2005 of $742,364 and income for the nine months ended February 28, 2005 of $480,422.

Management of the Company have the opinion that these changes will not affect decisions of users of the consolidated financial statements.

Amendments to this document as originally filed include changes to (i) the Quarterly results table for the three months ended November 30, 2004, (ii) the Quarterly results table for the three months ended February 28, 2005, and (iii) changes to the discussion of Results of Operations for the three months ended February 28, 2005.

RESULTS OF OPERATIONS

Original MD&A

The Company recognized net income of $1,068,322 for the three-month period ended February 28, 2005, in the corresponding period in 2004, the Company generated a loss of $87,067.For the three months ended November 30, 2004, the Company generated net income of $85,036. Revenues increased to $333,534 primarily from the partial sale of 1,045 ounces of gold, which came from the processing of a bulk sample from the Pine Cove project. For the three month period ended February, 28, 2005, the Company had operating expenses of $72,308 before the recovery of accounts payable of $26,911, future income tax recovery of $774,000 and a foreign exchange gain of $6,185. During the corresponding period in 2004, operating expenses totaled $88,067. Operating expenses for the nine-month period ended February 28, 2005 totaled $347,515.

Restated MD&A

The Company recognized net income of $742,364 for the three-month period ended February 28, 2005, in the corresponding period in 2004, the Company generated a loss of $87,067. For the three months ended November 30, 2004, the Company generated a net loss of $129,931. For the three month period ended February, 28, 2005, the Company had operating expenses of $72,308 before the recovery of accounts payable of $26,911, future income tax recovery of $774,000 and a foreign exchange gain of $6,185. During the corresponding period in 2004, operating expenses totaled $88,567. Operating expenses for the nine-month period ended February 28, 2005 totaled $347,515.



Quarterly Results

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Three Months Ended
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Restated Restated Original Original
Nov 30, Feb 28, Nov 30, Feb 28,
2004 2005 2004 2005
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Total revenue $ 7,879 $ 7,576 $ 222,846 $ 333,534
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Earnings (loss)
for the period (129,931) 742,364 85,036 $1,068,322
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Earnings (loss) per share (0.01) $ 0.03 0.00 $ 0.04
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Dividends 0 0 0 0
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Current assets 1,933,552 1,316,514 1,933,552 1,316,514
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Mineral properties and
related deferred costs 2,880,706 3,507,300 3,095,673 4,048,225
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Total assets 4,814,258 4,823,814 5,029,225 5,364,739
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Current liabilities 201,285 224,584 201,285 224,584
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Total long term debt 0 0 0 0
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Shareholders' equity 4,612,973 4,599,230 4,827,940 5,140,155
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The restated documents have been posted on SEDAR and may be viewed at www.sedar.com.

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