Acadian Mining Corporation Sells Zinc and Lead Interests

Trading Symbol: ADA:TSX

HALIFAX, Feb. 8 /CNW/ - Acadian Mining Corporation ("Corporation" or "Acadian") (TSX: ADA) is pleased to announce that it has signed a letter of intent with Selwyn Resources Ltd. ("Selwyn") whereby Selwyn would acquire the zinc and lead assets of Acadian for a cash consideration of $10 million.

The sale will be consummated by Selwyn acquiring all of the issued and outstanding shares of ScoZinc Limited ("ScoZinc") which holds all of the assets associated with the Scotia Mine located in Nova Scotia ("Acquisition"). Selwyn and Acadian have agreed to an exclusive period expiring on February 14, 2011 to complete a binding letter agreement for the Acquisition.

The sale price for ScoZinc is $10 million less certain deductions including those related to increased bonding requirements for an amended reclamation and closure plan for the Scotia Mine. Upon completion of the Acquisition, Selwyn will own the mine-mill complex and an extensive mineral claims package.

The Acquisition is subject to completion of formal documentation, regulatory approval and the achievement of certain conditions prior to closing, including Selwyn being satisfied with the results of an environmental audit by an independent consulting group and Selwyn receiving an independent NI 43-101 Technical Report confirming the Mineral Resources reported by ScoZinc.  The parties have agreed to act expeditiously and in good faith in finalizing and executing a binding letter agreement and, thereafter, a more formal agreement of purchase and sale.  Acadian has agreed to the payment of a break fee in the amount of $1.5 million if it receives and accepts an unsolicited superior proposal. During the period Acadian has agreed to negotiate exclusively with Selwyn.

Grant Ewing, President and C.E.O., stated, "Acadian is very pleased to enter into this transaction with Selwyn Resources. Following the sale of the zinc and lead interests, Acadian will be a well-financed and focused gold exploration and development company, with an excellent portfolio of projects in a highly prospective and under-developed gold region. Selwyn has an experienced management team and is committed to the zinc business, and is thus ideally suited to bring the Scotia Mine back into commercial production ".

Gold Exploration Update
Over the last several months, Acadian has been prioritizing and performing detailed planning and budgeting in preparation for an active gold exploration program that is slated to commence in the near future. Acadian has numerous high quality gold exploration projects in Nova Scotia that the Corporation considers highly prospective for new discovery.

Acadian's 2011 exploration activities will focus on its two advanced stage gold projects; Fifteen Mile Stream and Beaver Dam, both of which have excellent potential to be developed as bulk tonnage open-pit mines. Significant resources have been identified at the projects, and the exploration programs are designed to increase both the scale and quality of the resources. Acadian also plans to conduct exploration programs at its Golden Seal and FMS Trend projects, among others, as part of a comprehensive 2011 program.

Current Activities
A regional till sampling program is underway to aid in delineating target areas along the FMS Gold Trend. The till sampling data will be assessed in conjunction with the data from a regional airborne survey conducted last year to fine tune the gold target selection process. The FMS Trend is an extensive and highly under explored region that is viewed as having excellent potential to host new discoveries. Most of the important potentially bulk mineable gold deposits in Nova Scotia occur on this trend, and Acadian is the largest owner of exploration claims in the region.

Qualified Person
Richard Horne, M.Sc., P.Geo., Chief Geologist of Acadian, is a Qualified Person in compliance with National Instrument 43-101 and has reviewed and approved the technical information in this news release.

About the Corporation

Acadian is a Halifax, Nova Scotia, Canada based company with five advanced gold projects, all of which host National Instrument 43-101 compliant resources. The Corporation also owns barite properties on Cape Breton Island, Nova Scotia and the Scotia Mine, which is currently on care and maintenance. Acadian's primary focus is centered on exploration and development of its gold deposits in Atlantic Canada.

For additional information on Acadian's properties and activities, please visit our web site at: www.acadianmining.com.

SOURCE ACADIAN MINING CORPORATION

For further information:

Grant Ewing, President and Chief Executive Officer
(902) 444-7779 Toll Free: (877) 444-7774
mail@acadianmining.com
Halifax, Nova Scotia

No regulatory authority has approved or disapproved the contents of this news release.

Profil de l'entreprise

ACADIAN MINING CORPORATION

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