Acadian Mining Corporation halts spin-out of gold assets and proposed private placement by Annapolis Gold Corporation



    Trading Symbol: ADA:TSX; C2Z-Frankfurt
    Shares Outstanding: 142,357,907

    HALIFAX, July 9 /CNW/ - Acadian Mining Corporation (TSX: ADA) ("Acadian"
or the "Corporation") announced today that due to the current unfavourable
conditions in the capital markets for junior gold companies, the proposed
equity financing for Annapolis Gold Corporation ("Annapolis"), and the
distribution of Annapolis common shares to Acadian shareholders as previously
announced in news releases of April 18, May 26, June 11 and June 24, 2008,
will not proceed at the present time. Acadian will review the merits of
proceeding with the spin-out of its gold assets at a future date. Until such
time, Acadian will remain a diversified company with quality assets which
include the Scotia Mine (zinc-lead), operating at a rate of 2,400 - 2,500
tonnes per day, five advanced gold properties which collectively host 626,000
ounces gold in the measured and indicated category and 1,111,000 ounces gold
in the inferred category (see table below for details), the largest in situ
barite deposit in Atlantic Canada, and a large footprint in the Buchans base
metal camp in Newfoundland through its interest in Royal Roads Corp.
(RRO-TSX-V).
    
    Gold Resources

    -------------------------------------------------------------------------
                                                            Cut(xx)
    -------------------------------------------------------------------------

    Property        Lower Cut-off     Category    Tonnes(*)  Grade  Ounces(*)
    -------------------------------------------------------------------------
                                      Measured
    Beaver Dam      0.30 g/t       & Indicated   9,080,000    1.53   446,000
                                   ------------------------------------------
                                      Inferred  10,400,000    1.51   504,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Fifteen Mile
    Stream(xxx)     0.7 g/t           Inferred   3,800,000    1.66   202,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                     Indicated     225,000   14.91   108,000
    Forest Hill     3.50 g/t/1.20m  -----------------------------------------
                                      Inferred     383,000   11.93   147,000

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                     Indicated     134,000    9.67    42,000
    Tangier         3.50 g/t/1.20m  -----------------------------------------
                                      Inferred     271,000   12.08   105,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                     Indicated      63,000   14.72    30,000
    Goldenville     3.50 g/t/1.20m  -----------------------------------------
                                      Inferred     385,000   12.38   153,000
    -------------------------------------------------------------------------
    TOTAL -                      Measured & Indicated                626,000
                                                                   ----------
                                                                   ----------
    5 Properties                 Inferred                          1,111,000
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                             Uncut
    -------------------------------------------------------------------------
    Property                          Category    Tonnes(*)  Grade  Ounces(*)
    -------------------------------------------------------------------------

                                                 9,090,000    2.01   589,000
    Beaver Dam                      -----------------------------------------
                                                10,370,000    2.16   720,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Fifteen Mile
    Stream(xxx)                                  3,800,000    1.66   202,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Forest Hill                                    225,000   24.02   174,000
                                    -----------------------------------------
                                                   383,000   12.42   153,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Tangier                                        134,000    9.67    42,000
                                    -----------------------------------------
                                                   271,000   15.09   130,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Goldenville                                     63,000   16.62    33,000
                                    -----------------------------------------
                                                   385,000   18.78   232,000
    -------------------------------------------------------------------------
    TOTAL -                      Measured & Indicated                838,000
                                                                   ----------
                                                                   ----------
    5 Properties                 Inferred                          1,437,000
    -------------------------------------------------------------------------

    (*)   Rounded
    NR No. 23-07, July 16, 2007; NR No. 13-05, Oct 7, 2005; NR No. 02-05,
    March 2, 2005; NR No. 17-04, Oct 5, 2004; NR No. 08-08, May 29, 2008
    (xx)  See Technical Reports filed on SEDAR by Acadian Mining Corporation
          for details.
    (xxx) 50% owned by Acadian Mining Corporation
    

    Acadian is one of the dominant companies focused on exploring and
developing gold deposits in the Nova Scotia gold fields, a gold district which
is continuing to gain prominence with recognition of its potential to host
bulk tonnage-open pit gold deposits as well as high grade underground deposits
with considerable depth potential. Acadian's two principal bulk tonnage
targets are Beaver Dam and Fifteen Mile Stream located only 18 kilometres
apart on the same geological structure. Fifteen Mile Stream boasts
disseminated gold mineralization in Goldenville Formation mudstones over a
strike length in excess of 3 kilometres and drill intercepts up to
102.9 metres (approximate true width) grading 1.46 g/t gold (news release June
2, 2008). Acadian has recently staked an additional 45 kilometres of strike
length on this structure.
    Acadian is one of the largest mineral claim holders in geological terrane
prospective for carbonate hosted zinc-lead deposits similar to the Scotia Mine
deposits. The extensive holdings adjacent to Scotia Mine are particularly
prospective and have obvious synergies and economic advantages given the
proximity to Acadian's large milling facility.
    The Corporation continues to advance its Nova Scotia barite project with
the objective of marketing 100,000 tonnes per year into the Gulf of Mexico
market, which is approximately 1,000,000 tonnes per year and supplied
principally from Chinese sources. Barite is the principal component in
drilling mud utilized by the petroleum industry to prevent gushers and
blowouts, and drill bit lubrication.
    In addition to the above commodities, Acadian is exploring mineral claims
in Nova Scotia prospective for manganese and molybdenum.

    Management's Opinion
    --------------------

    Will Felderhof, President and CEO, stated, "We are disappointed by the
difficult capital market encountered during Annapolis' financing effort.
However, markets change, and we recognize that choosing a more optimum time
for a potential spin-out at some future date is in the best interests of the
Acadian shareholders. Acadian will continue to advance its key gold
properties, particularly the bulk tonnage-open pit targets - Beaver Dam and
Fifteen Mile Stream."

    About Acadian
    -------------

    Acadian is a Halifax, Nova Scotia, Canada based mining company which
operates a zinc-lead mine (Scotia Mine) at Gays River, Nova Scotia and is
exploring and developing gold, zinc-lead, and barite properties in Atlantic
Canada.
    The Scotia Mine operates as an open pit mine and is expected to produce
30,000 tonnes of high grade zinc concentrate and 12,000 tonnes of high grade
lead concentrate per year. See Acadian's News Release No. 16-06 dated July 17,
2006 for further details.
    The Corporation is also focused on developing five advanced gold
properties. All five of the properties, Beaver Dam, Tangier, Forest Hill,
Goldenville and Fifteen Mile Stream host gold resources described in technical
reports prepared in compliance with National Instrument 43-101 which are
available on www.sedar.com. The Corporation is bringing a new approach to the
development of Nova Scotia gold deposits by pursuing a multiple mine, central
processing, managing and servicing strategy.
    The Corporation holds a 44.42% equity interest in Royal Roads Corp.
("Royal Roads") (RRO-TSX-V). Royal Roads' principal asset is a 16,075 hectare
(approximately 32 km x 5 km) mineral property known as the Tulks North
property which is strategically located in the centre of the world-class
Buchans base metal camp in central Newfoundland, Canada. In addition, Royal
Roads holds a 26.4% equity interest in Buchans River Ltd. ("Buchans River")
(BUV-TSX-V), which also holds a highly prospective property portfolio in the
Buchans camp. Acadian's indirect interest in Buchans River is 11.7%.

    Other
    -----

    Terence Coughlan, B.Sc., P. Geo., is a qualified person as defined by
National Instrument 43-101 and has reviewed the technical information reported
in this news release for accuracy.

    Forward Looking Statement
    -------------------------

    Certain information regarding the Corporation contained herein may
constitute forward-looking statements within the meaning of applicable
securities laws. Forward-looking statements may include estimates, plans,
expectations, opinions, forecasts, projections, guidance or other statements
that are not statements of fact. Although the Corporation believes that the
expectations reflected in such forward-looking statements are reasonable, it
can give no assurance that such expectations will prove to have been correct.
The Corporation cautions that actual performance will be affected by a number
of factors, many of which are beyond the Corporation's control, and that
future events and results may vary substantially from what the Corporation
currently foresees. Discussion of the various factors that may affect future
results is contained in the Corporation's Annual Information Form dated March
26, 2008 which is available at www.sedar.com. The Corporation's
forward-looking statements are expressly qualified in their entirety by this
cautionary statement.
    For additional information on the Corporation's properties and
activities, please visit our web site at www.acadianmining.com. If you wish to
be added to the Corporation's e-mail or fax distribution list for future news
releases and updates, please contact Acadian at phone: (902)444-7779, fax:
(902)444-3296, email: mail@acadianmining.com.

    No regulatory authority has approved or disapproved the contents of this
    release.
    %SEDAR: 00015714E




For further information:

For further information: G. William Felderhof, President & CEO; Terry F.
Coughlan, Vice President; (902) 444-7779, Toll Free: (877) 444-7774,
mail@acadianmining.com

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Acadian Mining Corporation

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