Trading Symbol: ADA:TSX; C2Z-Frankfurt

Shares Outstanding: 142,357,907

HALIFAX, Aug. 14 /CNW/ - Acadian Mining Corporation (TSX: ADA) ("Acadian" or the "Company") announced its second quarter financial results for the three months ended June 30, 2008 and information on its Scotia Mine operations, highlights of which are presented in Tables 1 & 2 below. Complete financial statements and management's discussion and analysis of results are available on the regulatory filing site www.sedar.com and the Company's website www.acadianmining.com and should be read in conjunction with this news release.

The Company recorded a loss of $5,762,413 on revenues of $3,688,127 from zinc and lead concentrate sales for the quarter. The loss for the quarter reflects the impact of certain events in the pit operations and negative pricing adjustments on concentrate sales settlement dates. The pit operations are now running smoothly and the Company is initiating a revenue protection program to curtail future negative pricing adjustments.

Table 1 - Financial Highlights

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Quarter ended June 30

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2008 2007

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$ $

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Revenue 3,688,127 nil

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Operating income (loss) (5,658,985) (867,370)

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Net income (loss) (5,762,413) 600,061

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Income (loss) per share (0.04) 0.01

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June 30, December 31,

2008 2007

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Cash and equivalents 137,683 3,022,687

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Working capital (3,826,266) 6,920,319

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Total assets 61,977,699 63,043,437

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The events in the pit operations which negatively impacted results in this

quarter stemmed directly from the previously reported (May 16, 2008) flooding

of the polishing pond in the first quarter. The flooding was due to extreme

run off caused by unusually heavy rainfalls coupled with snow melt, and

necessitated shutting down the pit pumps. While corrective measures were

implemented at the polishing pond to avoid future problems of this nature, the

475 bench in the central section of the pit, which is developed in reserve

grade ore, was lost due to water submersion subsequent to shutting down the

pit pumps. During the period to late April when the 475 bench ore was not

available, the plant processed material from low grade, higher level pit

benches and stock piles.

In mid-May it was apparent that the small foot print of the central

section of the pit would not be capable of providing the flexibility needed to

take advantage of the increased mill capacity at 2,500 tpd and further

incremental throughput planned for late Q3-08.

In order to address this issue, a decision was made to bring the north

section of the pit down to the 475 level as quickly as possible to

significantly expand the footprint of the pit in reserve grade ore. To achieve

this objective necessitated mining materials in excess of plan comprising

865,000 tonnes of waste material and low grade ore typical of higher bench

levels in the back reef portion of the deposit. This resulted in extending the

period of low grade mill feed to 10 June, 2008. Mill head grades in July and

August have improved to 3.17% zinc and 1.48% lead and 3.66% zinc and

1.01% lead respectively, and are expected to remain at mine grade, being a

combined zinc and lead grade of approximately 4.68% through Q-3 and Q-4.

Ore Reserve block model data was reconciled with the blast hole drill data

on the 505 m level bench, and indicated a positive variance for both tonnes

and grade. This is a positive development which provides management with

confidence in the block model grade of benches scheduled to be mined for the

remainder of 2008 and beyond.

A further significant improvement in the pit operations was also

undertaken in Q-2. This entailed the drilling of six, 18-inch wells

immediately peripheral to the planned pit perimeter to depths below the final

planned pit depth. Pumping from these wells has greatly improved pit

operations and productivity which previously was impacted by time lost through

moving submersible pit pumps prior to, and following blasting.

The negative impact to financial results from pricing differentials

between those at shipping dates and settlement dates was significant. Prices

for both zinc and lead declined during Q-2 which resulted in a negative

adjustment of the final prices for concentrates shipped in Q-1. During the

quarter the Company requested hedging proposals from several groups and is

considering various revenue protection programs.

To date, a portion of the Q-2 lead production has been sold forward, with

the settlement date of the contract, coinciding with the date of the

settlement by the concentrate buyer. At the time of this news release, no zinc

production has as yet been sold forward.

Cash cost per pound of payable metal (zinc and lead) sold for the period

was $0.78, which exceeded the cost for the first quarter operating period by

$0.06. The increased cost of production reflects the above described

production issues experienced in Q-2. Cash cost per pound of payable metal

(zinc and lead) for Q-3 is forecast to decrease to approximately $0.55.

Operational highlights for the quarter are presented in Table 2 below.

Table 2 - Operational Highlights - Quarter ended June 30, 2008

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Production Q2 - 2008 Q1 - 2008

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Ore milled Tonnes 189,200 173,433

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Head grade - zinc Percent 2.13 1.99

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Head grade - lead Percent 1.03 1.09

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Recovery - zinc Percent 82.65 75.21

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Recovery - lead Percent 86.04 87.42

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Zinc concentrate Tonnes dry 5,592 4,253

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Zinc concentrate Grade % 56.80 54.64

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Zinc metal Tonnes 3,176 2,324

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Zinc metal Pounds 7,002,374 5,123,862

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Lead concentrate Tonnes dry 2,248 2,116

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Lead concentrate Grade % 70.74 70.15

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Lead metal Tonnes 1,590 1,484

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Lead metal Pounds 3,505,832 3,505,832

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Metals Sold - Cost of Production

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Zinc Tonnes 2,686 2,568

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Zinc Pounds 5,921,156 5,661,589

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Lead Tonnes 1,584 1,895

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Lead Pounds 3,316,783 4,178,026

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Zinc & lead Total pounds 9,237,939 9,839,615

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Cost of production sold $7,189,056 $7,124,843

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Cost of production sold Per pound Zn & Pb $0.78 $0.72

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Cost of production sold Per tonne milled $37.98 $35.06

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The Company's second quarter zinc and lead production was 74% and 77%, respectively, of target, which was due to not having full access to mine benches at and below the 475 m level during the quarter for reasons as described above. This restricted access to reserve grade ore below the 475 m level resulted in lower head grades to the mill. The average zinc head grade for the period was 2.13%, which was 75% of plan for the period and the average lead head grade was 1.03% which was 79% of plan. Zinc and lead recoveries in the mill were 82.65% and 86.04% respectively, which was 101% and 96% of plan. Further improvements in recoveries are anticipated in Q3. Mill throughput for the quarter averaged 2,300 tpd at 90% mill availability. Planned improvement to the crushing circuit in Q3 is expected to increase throughput to 2,600-2,700 tpd.

The company is implementing a cost reduction program at Scotia Mine designed to ensure that every effort is being made to stay globally competitive in a challenging and uncertain metal price environment.

Despite reduced levels of production in the first half of 2008, the Company is confident that with the planned increased mill throughput couple with current head grades, the targeted production of 30,000 tonnes of zinc concentrate and 12,000 tonnes of lead concentrate remains achievable in 2008. The projected production is approximately 33.5 million pounds of payable zinc and 17.7 million pounds of payable lead.

Management Opinion

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Will Felderhof, President & CEO stated: "Obviously we are disappointed with the 2nd quarter performance. However, with the major improvements in pit operations, increased mill throughput to 2,500 tpd and ore grades at mine plan, we are expecting the second half of 2008 to exceed our original production targets for this period."

About the Company

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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 in 2008. See Acadian's News Release No. 16-06 dated July 17, 2006 for further details.

The Company 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. Beaver Dam and Fifteen Mile Stream, located only 18 kilometres apart, are targets for potential bulk tonnage - open deposits.

The Company 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 Company holds a 29.1% equity interest in Royal Roads Corp. ("Royal Roads"). Royal Roads is a Halifax, Nova Scotia, Canada based mineral exploration and development company listed for trade on the TSX-Venture Exchange under the trading symbol RRO, and on the Frankfurt Exchange under the symbol RR91. The Company has two key assets, the Daniels Pond base metal deposit and the former Buchans Mine, both 100% owned. The Company holds additional exploration properties in Newfoundland, several of which are joint ventured with third parties.

The 100% owned Daniels Pond deposit is located in the 16,075 hectare Tulks North mineral property strategically located in the centre of the world-class Buchans base metal region in central Newfoundland, Canada. The 100% owned Buchans Mine property controls the past producing Buchans Mine, and essentially all of the key mineral claims covering the Buchans Formation of rocks which was host to the Lucky Strike base metal-silver deposit mined previously by Asarco. The Lucky strike deposit was one of Canada's richest base metal deposits.

Forward Looking Statement

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Certain information regarding the Company 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 Company 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 Company cautions that actual performance will be affected by a number of factors, many of which are beyond the Company's control, and that future events and results may vary substantially from what the Company currently foresees.

Discussion of the various factors that may affect future results is contained in the Company's 2006 Annual Report which is available at www.sedar.com. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement.

Other

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For additional information on the Company's properties and activities, please visit our web site at www.acadianmining.com. If you wish to be added to the Company'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: [email protected].

No regulatory authority has approved or disapproved the contents of this

release.

Source: Canada NewsWire (August 13, 2008 - 11:05 PM EDT)

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