The Scotia Zinc Project is comprised of two key elements: The Scotia Mine at Gays River, Nova Scotia owned 100% through subsidiary ScoZinc Ltd., and a large holding of exploration claims totalling approximately 47,000 hectares predominantly in the Carboniferous age Windsor Group carbonate rocks, the same rock group hosting the Scotia Mine zinc-lead deposits.

Zinc & Lead Reserves & Resources

	Tonnes	% Zinc	% Lead
Scotia Mine
Reserves* Resources (Inf.)*	4,600,000 1,800,000	3.6 3.1	1.7 1.1
* 0.75% Zn Equivalent Cut-Off (Zn Eq%=Zn%+0.43%Pb)
Getty Deposit
Resources (Inf.)**	2,860,000	2.06	1.6
**2.50% Zn Equivalent Cut-Off (Zn Eq%=Zn%+%Pb)
Smithfield Deposit
Resources*** (Uncategorized)	500,000	3.5	2.7
*** This resource estimate is historic in nature, not compliant with NI-43-101 and as such can not be relied upon.

The Scotia Mine was successfully brought into operation in early May, 2007, only ten months after acquisition on July 6, 2006. This extraordinary achievement is a reflection of the dedication and hard work of the staff at Scotia Mine under the direction of Bill Rogers, Acadian’s Chief Operating Officer.

Memorandums of Understanding (“MOUs”) have been entered into with two metal trading companies, Trafigura AG and MRI Trading AG, both of which are head-quartered out of Zug, Switzerland, to purchase all of the planned Scotia Mine production in 2007 and 2008. Trafigura will purchase 50% of the zinc concentrate and 100% of the lead concentrate, and MRI will purchase 50% of the zinc concentrate. Acadian, with the assistance of Mr. Stanley Neamonitis, special marketing consultant, negotiated favourable commercial terms for the sale of production from Scotia Mine.

Production estimates for 2008 are 42-46 million pounds zinc metal in concentrate (recovered) and 19-21 million pounds lead metal in concentrate (recovered).

C-1 cost for zinc in 2008 is currently projected to be CDN$0.39/lb, however, a 10% premium to CDN$0.43/lb is warranted given the price volatility for key commodities - i.e. reagents and petroleum products, and unforseen negative events.  The projected C-1 cost range of $0.39 - $0.43/lb zinc falls in the lower end of the scale with respect to other zinc producer costs in the industry.

The Scotia Mine property is also host to a large, high grade gypsum deposit, a portion of which will be stripped as waste to access the surface zinc-lead mineralization. While the feasibility study completed in July, 2006 treats the gypsum extraction as an operating cost, there is potential to turn this cost centre into a revenue centre.

Acadian Mining Corp. engaged MineTech International Limited on December 21, 2005 to complete a National Instrument 43-101-compliant resource and reserve estimate. The economic analysis of the proposed operation was to include a feasibility study within an accuracy of plus-or-minus ten percent. Mr Douglas Roy, M.A.Sc., P.Eng., who was the Principal Author of this report, is a Qualified Person under Section 1.1 of National Instrument 43-101.

Terence Coughlan, B.Sc., P.Geo., is acting as Qualified Person in compliance with National Instrument 43-101with respect to this website and has reviewed the contents for accuracy.