Anaconda Gold Corp.

Anaconda Gold Corp.

August 10, 2005 15:38 ET

Drilling Update Report for Anaconda Gold's Horse Mountain Project On the Carlin Trend, Nevada

TORONTO, ONTARIO--(CCNMatthews - Aug. 10, 2005) - Anaconda Gold Corp. (TSX VENTURE:ANX) is pleased to provide an update on drilling at its Horse Mountain gold project in Nevada.

Anaconda's partner, Keegan Resources Inc. (TSX VENTURE:KGN) has collared its hole 1,500 feet from the surface expression of the Rock Creek fault and expects to encounter the Rock Creek fault at a depth of approximately 1,800 feet. The top of the lower plate, Carlin-style, carbonate host rocks are anticipated beneath the fault at a depth of 1,700 feet to 2,800 feet.

The first 830 feet of drill core, consists of strongly altered Eocene Carlin-age volcanic rocks with sections of sulphide mineralization, according to Keegan.

Keegan is in the process of logging the core in preparation for select sampling and assaying. Jim Oliver, PhD, PGeo, is Keegan's qualified person at the Horse Mountain project.

Located in Elko County, Nevada, approximately 40 km north of Barrick Gold's Meikle gold mine, the Horse Mountain project is found along the northwest extension of the Carlin Trend.

Drilling is testing a stratigraphic, structural, alteration and mineralization model for a buried Meikle or Ren-like Carlin-type deposit in the northern portion of the property. The stratigraphic model (gleaned from recent mapping and core logging by Great Basin Gold Ltd. at the Ivanhoe Project and the USGS and Nevada Bureau of Mines) suggest lower plate carbonate rocks may be encountered 1,700-2,800 feet below surface.

The structural model suggests that the NE trending strongly altered and mineralized Rock Creek fault dips steeply to the NW. The alteration and mineralization model suggests that silicification and mineralization encountered on the Rock Creek Fault (up to 10,000 ppm arsenic and 1000 ppb gold), will increase in strength and size at the intersection of the Rock Creek Fault and the Lower Plate carbonate rocks.

Anaconda Gold optioned the Horse Mountain project to Keegan, which has the right to earn a 51% interest in the Horse Mountain project by spending US$1.5 million on exploration and maintaining the claims in good standing. Keegan can earn an additional 19% interest by completing a feasibility study.

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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