2005

Acquisition Update

Mr. Nick DeMare, President, provides this update on the corporate acquisition announced March 17, 2005. Since this date, work has been ongoing on the necessary documentation for both shareholder and regulatory approval.

The Company signed a letter of intent with Magellan Gold Corp. ("Magellan") and the shareholders of Magellan for the acquisition of all the issued and outstanding shares of Magellan. Subsequent to March 17, 2005, Magellan has changed its name to Kola Mining Corp. ("Kola") and it is proposed that the Company, on closing of this acquisition, will change its name to Kola Mining Corp.

The Company has increased the size of its previously announced financing to 4,375,000 units at $0.20 per unit. This financing will close in conjunction with the closing of the acquisition. The Company will also issue 1,900,000 units and 100,000 common shares to settle outstanding indebtedness of Kola. A formal share purchase agreement has been finalized and signed between the Company, Kola, and the shareholders of Kola.

The Company has retained Canaccord Capital Corp. to sponsor this transaction and their work has been
substantially completed.

In conjunction with the closing and subject to shareholder and regulatory approval of the acquisition, the Company will grant 2,335,000 options exercisable at $0.20 per share for a term of 5 years.

A detailed Information Circular describing the proposed transactions has been prepared and will be mailed on or about August 15, 2005 for a shareholders' meeting to be held on September 15, 2005.

A technical report in compliance with National Instrument 43-101 has been prepared by Kola' independent qualified person, Dean Besserer, P. Geo. of Apex Geoscience on Kola's Bulakashu property. Key conclusions and recommendations from the report are as follows: The Bulakashu Property lies within the Northern Tien Shan terrane of northern Kyrgyzstan and falls within a broad band of gold and copper mineral deposits, locally referred to as the Kyrgyz-Kungey mineral belt. A total of 24 gold and gold-copper hard rock and placer gold occurrences exist within the 240 square kilometre Bulakashu property. Based on all of the known gold and copper-gold occurrences, favourable structural settings, alteration and geology, the Bulakashu Property has potential to host large scale, orogenic/structurally hosted gold deposits and possibly porphyry style copper-gold deposits. Therefore, an aggressive comprehensive exploration program is warranted.

Since 2002, all of the exploration on the Bulakashu Property has focussed on the Karabulak prospect. The
Karabulak prospect consists of northeast trending gold bearing zone of highly silicified and veined quartz

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release stockwork hosted within sheared and altered mafic volcanics.

The mineralized quartz stockwork zone at Karabulak outcrops, and has been trenched and sampled along strike for 400 metres and up to 80 metres across strike. Historic exploration by Soviet era workers in the early 1960's yielded rock chip samples from surface trenches, which contained up to 46 g/t Au across 6m and 35.4 g/t Au across 8.2m (See Baradero Press Release, March 15, 2005).

The historic exploration work concentrated primarily on the most intensely veined and silicified portion of what may prove to be a larger zone of mineralization. There is evidence that the mineralization at Karabulak remains open along and across strike. A composite grab sample of sheared, intensely silicified and chloritized mafic volcanic collected by Mr. Besserer contained abundant visible gold and assayed 171 g/t Au, confirming previous chip sampling from the Soviet era work that returned 122 g/t Au over 1 metre (See Baradero Press Release, March 15, 2005).

Four drill holes completed by the Bulakashu Mining Company at the Karabulak prospect during 2004 contain up to 11.45 g/t Au across 1m; 8.14 g/t Au across 1m; 8.09 g/t Au across 4m; 4.61 g/t Au across 5m; and 2.28 g/t across 31m. The mineralization identified on surface was interpreted to have a vertical dip and the drilling was targeted to intersect the vertical downward continuation of the surface mineralization. The drilling did encounter gold mineralization within silicified and sheared mafic volcanic rock, but beyond the vertical downward continuation of the surface mineralization suggesting the zone had a shallower dip to the northwest than anticipated. As a result, all of the 2004 drill holes did not cross the mineralized zone at an optimal high angle and it is questionable whether these holes would have fully penetrated the shallow downdip extension of the mineralized and altered zone exposed on surface.

A two phase exploration program is proposed for the Bulakshu property of which the Phase I program will be completed this fall at an estimated total cost of CDN$200,000. The Phase II program will largely consist of diamond drilling, the scope, timing and cost of which, will be contingent on the results of the Phase I program. The Phase 1 exploration program will include a compilation of all historic data from the Bulakashu property followed by an aggressive surface sampling programat Karabulak in order to define drill targets and evaluation of all other known gold and copper/gold occurrences on the Bulakashu Property. Evaluation of the other gold and copper gold showings on the property will include prospecting, rock grab, continuous channel or rock chip sampling to determine the potential size, grade and mineralizing controls at each occurrence. It is anticipated that the Phase II program will consist of drilling at Karabulak and follow-up exploration at priority gold occurrences discovered and/or advanced during the Phase I program .

One of the items that the Company has been monitoring is the political situation in Kyrgyzstan. On July 10, 2005 Kurmanbek Bakiyev was elected as the country's new president. Mr. Bakiyev has been serving as the interim President of Kyrgyzstan since protests in March of 2005 forced the departure and subsequent resignation of former president Askar Bakiyev in March, 2005. Mr. Bakiyev received 88.9 percent of the popular vote and voter turn out was greater than 50 percent. The Company feels that the strong endorsement of Mr. Bakiyev's leadership by the Kyrgyz people will further facilitate the economic growth of Kyrgyzstan and the continued development of a stable, sustainable mineral exploration and mining industry.

The technical content of this release has been reviewed by Douglas Turnbull, P. Geo., who is a qualified person as defined by National Instrument 43-101.


ON BEHALF OF THE BOARD
BARADERO RESOURCES LIMITED
"Nick DeMare"
Nick DeMare,
President