Acadian Mining Corporation Proposes Share Consolidation

Trading Symbol: ADA:TSX                                                                  

Shares Outstanding:  541,572,541      

HALIFAX, Oct 4 /CNW/ - Acadian Mining Corporation (the "Corporation") (TSX: ADA) announces that at a special meeting of shareholders scheduled for November 10, 2010 (the "Meeting"), shareholders will be asked to consider a special resolution to approve a consolidation of the Company's common shares on the basis of one (1) post-consolidation share for up to every ten (10) pre-consolidation shares ("Consolidation"). If the resolution is approved by two-thirds of the shareholders voting in person or by proxy at the Meeting, the directors will have the sole discretion to select the final Consolidation ratio (up to no greater than 10:1) and to implement the Consolidation, subject to the approval of the Toronto Stock Exchange.

The Corporation currently has 541,572,541 issued and outstanding common shares. In the event that the Consolidation is conducted on a 10 for 1 basis, the Corporation would have approximately 54,157,254 shares outstanding following the Consolidation. However, the exact number of post-Consolidation shares will vary depending upon the treatment of fractions which will occur when each shareholder's holdings are consolidated. In the event the Consolidation would otherwise result in the issuance of a fractional share, no fractional share will be issued and such fraction will be rounded down to the nearest whole number.  Outstanding stock options will similarly be adjusted by the Consolidation ratio.  Golden River Resources Corporation, which holds approximately 71.5% of the Corporation's issued and outstanding shares, has indicated that it intends to vote in favour of the resolution.

Management of the Corporation believes that further equity financing is required in order for the Corporation to fund its operating and working capital requirements. It is management's opinion that the Corporation's existing issued and outstanding share capital is not conducive to completing such additional equity financing, and that the Consolidation is required in order to facilitate attracting new equity investment in the Corporation.  In addition, management believes that the Consolidation will make investing in the shares of the Corporation more attractive to a broader range of institutional and professional investors and other members of the investing public. The Corporation will not be changing its name or its trading symbol in conjunction with the Consolidation.

Details of the Consolidation are contained in the Corporation's information circular to be mailed to the Corporation's shareholders on or about October 13, 2010, and filed on the SEDAR website (www.sedar.com) under the Company's profile.

About the Corporation

Acadian is a Halifax, Nova Scotia, Canada based company with five advanced gold projects, all of which host National Instrument 43-101 compliant resources.  The Corporation also owns a zinc-lead mine (Scotia Mine) at Gays River, Nova Scotia, which is currently on care and maintenance, and barite properties on Cape Breton Island, Nova Scotia.  Acadian's primary focus is centered on exploration and development of its gold deposits in Atlantic Canada.

No regulatory authority has approved or disapproved the contents of this news release.

For further information:

Additional Information

For additional information on Acadian's properties and activities, please visit our web site at www.acadianmining.com.

FOR FURTHER INFORMATION, PLEASE CONTACT:
Grant Ewing, President and Chief Executive Officer
[phone] Toll Free: [phone]
[email protected]
Halifax, Nova Scotia