Acadian Mining

Investors

Dear Shareholders,

I am pleased to report to you that Acadian is now positioned to prosper with the increase in the gold price to unprecedented levels following the restructuring that has occurred over the past 12 months.

The 2009 year presented its fair share of challenges for the Company. As a result of the Global Financial Crisis and collapse of zinc and lead prices in 2008, mining operations at the Company’s wholly-owned subsidiary, ScoZinc Limited ("ScoZinc"), ceased on March 24, 2009 and the mine was placed on care and maintenance. ScoZinc was granted protection under the Companies' Creditors Arrangement Act ("CCAA"). Following creditors’ endorsement of ScoZinc's proposed plan of arrangement ("Plan"), the Supreme Court of Nova Scotia ratified the Plan. ScoZinc completed the Plan in accordance with its terms on July 9, 2009. The settlement of the CCAA and the restructuring of the Company were made possible through the $10 million investment in Acadian by Golden River Resources Corporation ("Golden River"), which was endorsed by shareholders in June 2009.

Subsequent to completion of the investment by Golden River, the Board and management of Acadian was restructured, and our focus is now primarily on developing the Company’s gold assets. A restart study of the Company’s Scotia zinc lead mine was undertaken, with management currently considering the various options available.

In Q3 and Q4 2009, the Company embarked on an exploration and development program focused primarily on the Company’s open pit deposits - Beaver Dam and Fifteen Mile Stream. Both of these programs generated encouraging results. Assaying of unsampled historical drill core from Fifteen Mile Stream significantly improved the grades of these drill holes including for example DDH 85-12 which shows an approximate true width of 134.5 metres grading 1.88g/t gold, a 28% improvement over historical results. A metallurgical study completed for Beaver Dam yielded excellent results, demonstrating that gold recoveries should exceed 97% in a conventional milling operation. In December 2009, the Company acquired from Tangier Limited Partnership the Environmental Assessment Approval (“EA”) issued by the Nova Scotia Department of Natural Resources in connection with the Tangier gold project. The EA provides for a 400 tpd underground mine and processing facility. Further, in early 2010, the Company also concluded an Access Agreement providing for exploration activities including diamond drilling, and entered into an option to lease lands for a mining operation in relation to the Fifteen Mile Stream gold property. In April 2010, the Company completed a high resolution airborne magnetic survey, over seven key gold properties and the 115 kilometre FMS Trend which covers a significant portion of our gold holdings. The program was designed to assist in the identification of potential drill targets for possible bulk tonnage gold deposits. A diamond drilling program to increase gold resources is expected to commence at Fifteen Mile Stream shortly with the objective to expand the Company’s extensive gold portfolio which includes eight past producing gold mines and covers approximately 32,000 hectares prospective for gold.

In April 2010, the Company sold its 29.2% interest in Royal Roads Corp. for $1.96 million, the proceeds of which will be used to fund gold exploration and working capital requirements.

It is important that your shares be represented at the Meeting. Whether or not you are able to attend, we urge you to complete the enclosed proxy (or voting instruction form) and return it in accordance with the instructions that are on it. If you receive more than one proxy (or voting instruction form) it is because your shares are registered in more than one name. You should submit all proxies or voting instruction forms that you receive in order to ensure that all of your shares are voted.

The Board and management would like to thank all stakeholders for their support over the past 12 months whilst we have restructured our operations and look forward to your continuing support as we move forward.

On Behalf of the Board of Directors

PETER LEE
President and Chief Executive Officer
May 12, 2010

• 16 July 2010 Acadian Mining and Golden River Complete Private Placement > Read more

• 8 July 2010 Acadian Mining Announces Private Placement > Read more

• 30 June 2010 Acadian Mining Corporation 2nd Quarter Financial Statement > Read more

• 30 June 2010 Acadian Mining Corporation 2nd Quarter Management Discussion & Analysis > Read more

• 25 June 2010 Acadian Mining Announces Highlights Of AGM, Appointment Of New Director And Grant Of Options > Read more

• 24 June 2010 Acadian Mining Announces the Appointment of a New President And Chief Executive Officer > Read more

• 3 May 2010 Acadian Mining Announces Sale of its 29.18% Interest in Royal Roads Corporation > Read more

• 20 April 2010 Acadian Mining Enters into an Agreement for the Sale of its 29.18% Interest in Royal Roads Corp. > Read more

• 14 April 2010 Acadian Mining Concludes Access Agreement For Drilling And An Option To Lease Lands At Its Fifteen Mile Stream Gold Property > Read more

• 5 April 2010 Acadian Mining Commences Airborne Survey Over Its Large Gold Claim Holdings > Read more