Gold Exploration in West Africa

[FL]

Etruscan (EET.TO): GOLD TARGET CONFIRMED SOUTH OF SADIOLA

http://www.etruscan.com/lsiwebsite/news/HNR080704.htm

Windsor, Nova Scotia, July 7, 2004 -- Etruscan Resources Inc. (EET.TSX) announced today that a significant gold anomaly has been confirmed by an auger drilling program being carried out on the Djelimangara Permit in Mali, West Africa. The anomaly has been traced for 2,300 meters with values up to 11.6 grams per tonne gold.

The gold anomaly is located immediately south of IAMGOLD and Anglogold's Sadiola property boundary, within the Kofi Formation on the east side of the Mali West Shear Zone. The 10 million ounce Sadiola Gold Mine is situated 18 kilometers north of Djelimangara and is similarly situated within the Kofi Formation on the eastern side of the Mali West Shear Zone. Etruscan acquired the Djelimangara Permit in 2001 because of the strong similarities in the geologic setting and geochemical responses between Sadiola and Djelimangara.

The Djeimangara Permit was initially acquired by Barrick Gold following the discovery of the Sadiola Hill gold deposit. The structural setting of the property is dominated by the regional Mali West Shear Zone that crosses through the heart of the permit. Barrick conducted detailed soil geochemical surveys over Djelimangara that outlined a profusion of gold anomalies in a variety of geological environments. Over 900 soil samples carried in excess of 50 ppb gold and 65 sites exceeded 250 ppb. Barrick carried out limited drilling (3,000 meters in 23 holes) and tested only 9 of the anomalous zones with the best intercept reported at 3.7 meters averaging 13.44 grams per tonne gold. The distribution of gold anomalies on Djelimangara is very similar to the situation on the Sadiola property where at least 16 exploration targets have been identified outside of the main deposit at Sadiola Hill (see accompanying map).

Etruscan's current auger program has focused on selecting the most favorable areas for detailed follow-up. Detailed auger drilling on a 50 x 200 meter grid and closing to 50 x 100 meters has allowed better definition of the gold distribution in the underlying saprolite. The auger samples are also being tested for multi-element concentrations and the zone is clearly anomalous in typical pathfinder elements such as arsenic with values up to 1,000 ppm. It is anticipated that an additional 150 auger samples will be completed as part of the current program. These samples are expected to provide confirmation on the continuity and shape of the anomaly, and assist in planning for a reverse circulation (RC) drilling campaign in September 2004.

Don Burton, Chief Operating Officer for Etruscan stated:
"This is a very exciting development for Etruscan and confirms that our strategy of acquiring and exploring properties located in the prolific gold belts of Mali is working. Mali is ranked as the third largest gold producing country in Africa. Etruscan has already made a significant gold discovery in southern Mali this year at Finkolo, with an RC drill intercept of 38 meters of 6.4 gram per tonne gold, and this could well be the second. Etruscan is extremely keen to drill this target which has all the earmarks of a Sadiola-type setting.

Gold production is scheduled this fall from the Samira Hill Gold Mine in Niger to be followed by a production decision later this year for the Youga Gold Project in Burkina Faso. This imminent production coupled with a portfolio of high quality gold properties in West Africa, has Etruscan well-positioned to become a mid-tier gold producer within the next three years."

Auger drilling at Djelimangara penetrates the lateritic cover to obtain a single 1 meter sample of saprolitic material per drill hole for analysis. All sample preparations including low detection limit aqua regia gold analyses and multi-element ICP analyses were performed by Abilab of Bamako, Mali. Etruscan consistently employs a rigorous quality control and assurance program comprising regular insertion of certified reference standards, blanks and duplicates. The Djelimangara drilling and exploration program is being carried out under the supervision of David Duncan, P.Geo. and Qualified Person acting for Etruscan.

Etruscan Resources Inc. is a diversified Canadian junior mining company that is focused on the exploration and development of gold properties in West Africa and diamond properties in South Africa. The common shares of Etruscan are traded on The TSX under the symbol "EET". More extensive information on Etruscan can be found on its home page at http://www.etruscan.com.


For more information from Etruscan contact:
Richard Gordon, Investor Relations Tel: [phone] / Fax: [phone]
Tony Hayes, Vice President Tel: [phone] / Fax: [phone]
Cathy Malins, Park Green Communications, UK Tel: [phone]

NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS RELEASE

[ MAP of SADIOLA and DJELIMANGARA licenses ]