Anaconda Gold Corp.

Anaconda Gold Corp.

December 01, 2006 15:48 ET

Anaconda Gold to Buy Remaining Interest in Damoti Lake Gold Project

TORONTO, ONTARIO--(CCNMatthews - Dec. 1, 2006) - Anaconda Gold Corp. (TSX VENTURE:ANX) is pleased to announce that it has entered into an agreement with Doublestar Resources Inc (TSX VENTURE:DSR) to buy Doublestar's interest in the Damoti Lake gold project located about 200 kilometers north of Yellowknife, Northwest Territories.

Subject to final documentation and TSX Venture Exchange approval, Doublestar has agreed to sell a 100% interest in mining lease DAM 3 which hosts the Horseshoe Zone deposit and an 80% interest in the balance of the Damoti Lake mining leases to Anaconda Gold Corp. for cash of $100,000, short-term notes (60 - 150 days) valued at $1.2 million and 400,000 Anaconda shares.

Anaconda is currently earning a 55% interest in the Damoti project from Doublestar and this transaction will provide Anaconda with a 100% interest in the Horseshoe Zone deposit.

Drilling completed by Anaconda led to the completion of a NI 43-101 compliant resource estimate which outlined high grade gold mineralization in a portion of the Horsehoe Zone.

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 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.

"The acquisition of the remaining interest in Damoti Lake gives us control of an advanced stage mineral project which we intend to advance in 2007," Nick Tintor, President and CEO of Anaconda Gold said.

The Damoti Lake project encompasses 3,258 hectares which controls more than 12 km of banded iron formation striking across the property. Banded iron formations are the primary gold hosting unit on the property.

Anaconda has scheduled an annual and special meeting for January 8, 2007 at which shareholders of Anaconda will be asked to approve the acquisition of Colorado Minerals Inc. and all related matters as previously announced (see the press release issued on September 19, 2006).

All statements regarding the ability of the Company to successfully complete the acquisition of the Horseshoe Zone deposit and the acquisition of Colorado Minerals Inc. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include the successful negotiation of binding agreements, receipt of all applicable regulatory and shareholder consents and approvals, lack of appropriate funding, unpredictable results of exploration activities, and other risk factors, as discussed in the Company's filings with Canadian securities regulatory agencies. The Company expressly disclaims any obligation to update any forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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