Ashanti Gold Corp. GULSF

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Gulf Shores Resources Ltd. Quick Quote: GUL 0.24 (-0.01) Enters into an Agreement 2/12/04 Gulf Shores Resources Ltd. has entered into an agreement with a private U.S. company to participate in the drilling and testing of a well in the 250 acre Bounds#2 Upper Wilcox prospect in Liberty County, Texas. Gulf Shores will pay 4% of the acreage and 3-D seismic costs and 5.33% of the drilling costs (total approxima tely US$32,000) to casing point to earn a 4% working interest in the project. 3-D seismic indicates the acreage contains a high fault block and is surrounded by several similar fault blocks containing fields that produced between 3.5BCF and 20BCF. The initial well is expected to commence drilling within 60 days and will have a projected total depth of 9,200 feet. In Waller County, Texas, the David#1 well is awaiting a 500 foot tie-in to a gas sales line. Surface casing has been cemented at Parson's Pond and drilling of the 4000 foot main hole is expected to commence by February 20, 2004. Gulf Shores Resources Ltd. is paying 16.67% (approximately CDN$150,000) of the drilling and testing costs and 16.67% (approximately CDN$40,000) of the completion costs of the well to earn a 10% working interest in this 70,000 acre project in onshore Western Newfoundland. Several potential structural traps have been identified with seismic on the acreage including one which appears to have been tagged at its edge by a well drilled in 1965 without the benefit of modern seismic mapping. That well had a significant hydrocarbon show before it was abandoned due to hole collapse. There are numerous surface oil seeps on the acreage in addition to old shallow wells that produced light sweet crude. If successful, this project may have a total upside target potential of recovering up to 100 million barrels of oil. Seismic data is being re-processed and re-correlated to finalize plans for further exploration of the Alborada block, Colombia including the deeper Caballos formation. The Company owns a 10% working interest in the block. ON BEHALF OF THE BOARD