Ashanti and AFCAN Sign a Heads of Agreement in Sierra Leone

MONTREAL, QUEBEC--AFCAN is pleased to announce that it has signed a Heads of Agreement (HOA) with Ashanti Goldfields Company Ltd. ("Ashanti") on the Nimini East and Nimini West Exclusive Prospecting Licences (EPL's) for gold in Sierra Leone, West Africa (the "Properties"). The HOA was signed by Afcan's 75% owned subsidiary Nimini Mining Limited and Ashanti's 100% owned subsidiary Ashanti Goldfields Cayman Ltd.

The Heads of Agreement is such that Ashanti shall earn its interest in the Properties:

(a) by a payment of US$25,000 for the right to explore for four months. Ashanti can withdraw at any time during this period.

(b) by making successive option payments of US$25,000 after 4 months, US$50,000 after 1 year and spending US$500,000 on exploration over a two-year period to acquire a 51% interest in the Properties.

(C) by making successive option payments of US$75,000 after 2 years, US$100,000 after 3 years and US$100,000 after 4 years and spending a further US$1,000,000 on exploration to acquire a further 20 % interest in the Properties (total 71%).

(d) by completing a bankable feasibility study, Ashanti shall acquire an additional 9% interest in the Properties (total 80%).

(e) both parties then contribute on a pro-rata basis.

Other clauses agreed to include:

(a) Ashanti must withdraw if it has not completed a bankable feasibility study within six years.

(b) if Ashanti chooses to withdraw or is required to withdraw, immediately any interest held at the time is halved and Afcan becomes the Manager.

(C) if either party chooses not to commit its prevailing percentage interest at the time in any program undertaken by the Manager normal pro-rata dilution would apply until either party's interest falls below 5% when this automatically reverts to an net profits royalty (NPI) interests of 15%.

(d) while diluting Ashanti will maintain a 30 day first right of refusal until its interest falls below 5%.

/T/

The Properties are contiguous and are located in the Nimini Hills Archean greenstone belt 220 km east of Freetown. The Nimini West 56 square kilometre EPL contains the Komahun gold prospect which was discovered by a core hole drilled in 1967 to follow up encouraging stream sediment and trenching results. This hole intersected an estimated true width of 4.9 meters averaging 8.6 g/t gold. A five-hole core-drilling program in 1982 identified a steeply dipping, gold-bearing vein zone over a strike length of approximately 250 meters. The zone is open at depth and along strike. One hole in this zone cut several gold-bearing intervals, the best of which has an estimated true width of 9.75 meters averaging 4.6 g/t gold.

The Nimini East 42 square kilometre EPL contains the Nimikord gold prospect, a large gold in soil anomaly. EEC funded mapping (1989-92) reported that the belt consists of folded and stacked sheets of greenstone and that thrusting repeated the Banded Iron Formations (BIF's) many times.

Afcan holds these permits through Nimini Mining Ltd. The permits are for gold and are valid for 2 years, renewable once. The HOA is also subject to Government and regulatory approvals.

Ashanti is planning to start an exploration program in early May, 2003 to achieve as much as possible before the wet season in July.

AFCAN is a China focused company and announced on February 27th, 2003, the closing of an Agreement for the acquisition of a gold mine in China. AFCAN also holds 2 gold permits in Mali, both now joint ventured with Ashanti Goldfields Ltd, the Mount Kakoulima nickel-copper-cobalt-platinum project in Guinea and a phosphate project in Burkina Faso.

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FOR FURTHER INFORMATION PLEASE CONTACT:
Canada Mr. David G Netherway President-CEO

(514) 744-4408 ext 312 (514) 744-0235

(FAX) (514) 962 3775/+44 7764 18 96 95 (Cells)

Email: dgnetherway@compuserve.com

or

Mr. Benoit La Salle Chairman (514) 744-4408 (514) 744-2291 (FAX)

Email: blasalle@semafo.com

Website : http://www.afcan-mining.com

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