December 02, 2008

ScoZinc ink MoU for zinc and lead concentrate from Scotia mines

Acadian Gold Corporation announced that its wholly owned subsidiary, ScoZinc Limited has signed MoU with two buyers MRI Trading AG and Trafigura AG for the sale of the zinc and lead concentrate production from Acadian Gold's Scotia Mine in Nova Scotia. Both MRI and Trafigura are headquartered in Zug at Switzerland.

The MoU’ specify the principal commercial terms to be incorporated into definitive legally binding contracts for Scotia Mine production from start up to December 31st 2008. The contracts will also include an opportunity to continue the arrangements for a further two years to December 31st 2010, should the parties agree in late 2008 to principal terms governing production for this period. The definitive contracts are expected to be finalized and executed shortly.

The MoU with Trafigura provides for Trafigura to purchase 9,000 to 10,000 wet tonnes of zinc concentrate in 2007 and 15,000 to 18,000 tonnes in 2008. Trafigura will also purchase 5,000 to 6,000 wet tonnes of lead concentrate in 2007 and 10,000 to 12,000 tonnes in 2008. These sales represent 100% of expected production from the Scotia Mine for these periods.

Mr Will Felderhof president and CEO of Acadian Gold Corporation stated "We are pleased to have reached agreement on the principal sales terms of the Scotia Mine zinc and lead production with Trafigura and MRI and look forward to finalizing the contracts. This is an opportune time to bring a zinc-lead mine into production given the current high prices for these metals. Our anticipated cash flow should result in strong growth of the Corporation going forward."

Scotia Mine produces high grade zinc concentrate low in iron and other contaminants and a high grade lead concentrate. Commissioning of the mine commenced on May 7th 2007 and is expected to be completed and operating at full capacity by mid July 2007.