December 16, 2003

News Release: US $44 million dollar mining contract awarded for Samira Hill Gold Mine

Semafo inc. (TSX: SMF) and Etruscan Resources Inc. (TSX: EET) announced today that the Samira Hill Gold Project in Niger continues to move forward on schedule and on budget, with the recent selection of BCM International Limited ('BCM') as the mining contractor for the project. The value of the mining contract is estimated at US$ 44 million to be disbursed over the approximate seven-year mine life. The first gold pour is scheduled for September 2004. BCM has extensive experience in providing contract-mining services in West Africa and presently carries out contract mining for the Semafo Kiniero Gold Mine in Guinea. BCM has begun mobilizing the mining fleet from Ghana and is scheduled to be on site late December to begin the mine pre-stripping early in 2004. BCM has also been contracted to complete the earthworks on the tailings dam.

On and off site activity is also ramping up. The civil contractor, Sogea- Satom, is fully mobilized and is presently carrying out the concrete work. Mill and crusher refurbishment is nearing completion in South Africa and will be shipped to site later in December. The leach tanks are presently in transit from the United States and are scheduled to arrive on site by December 2003. The elution plant was recently tested at the premises of Como Engineering in Perth Australia and will be disassembled and shipped to Niger within the coming weeks. Local contractors have been hired to implement housing and office upgrades at the mine camp and placement of the raw water pipeline from the main reservoir to the plant. Upgrading of the main access road to the mine site is complete.

Annual production from Samira Hill in the first year is forecast to be 135,000 ounces at a cash cost of US$177 per ounce. With current mineable reserves of 10,073,626 tonnes grading 2.21 grams of gold per tonne the mine is expected to produce an average of 100,000 ounces of gold per year at an average cash cost of US$203 per ounce. The Samira Hill Gold Project currently has a global resource of 1,995,500 ounces in all categories as estimated by Resource Service Group Pty Ltd ('RSG') of Perth, Australia.

Samira Hill will operate under the Nigerien company, Societe des Mines du Liptako ( SML ).SA. SML is a limited liability company governed by the laws of Niger and is owned 80% by African GeoMin Mining Development Corporation Limited ('AGMDC') and 20% by the State of Niger. AGMDC is in turn owned by Semafo (50%) and Etruscan (50%). Semafo, Etruscan and the State of Niger participate to the overall project management through their representation on a joint technical committee. Managem S.A., the mining division of Groupe ONA is providing project management for the Samira Hill Gold Project.

GBM Minerals Engineering Consultants Limited (GBM) of the United Kingdom has been engaged to work with the project manager on all aspects of the project. GBM is an independent firm of engineering consultants specialising in assisting clients with the development, design and construction of new mining projects, and was engaged in 2000 by Ashanti Goldfields as an owner's representative during the development of the 500,000 ounce per year Geita gold mine in Tanzania.

The common shares of SEMAFO are traded on The Toronto Stock Exchange under the symbol 'SMF'. The common shares of Etruscan are traded on The Toronto Stock Exchange under the symbol 'EET'. More extensive information on Semafo can be found on its home page at http://www.semafo.com . More extensive information on Etruscan can be found on its home page at http://www.etruscan.com .

Semafo inc., is a mining company whose mission is to explore and develop gold and base metal deposits in West Africa

NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS RELEASE

For further information: MONTREAL: Benoit La Salle, President,(514) 744-4408, Fax: (514) 744-2291, blasalle(at)semafo.com; RENMARK: TinaCameron or Henri Perron, (514) 939-3989, Fax : (514) 939-3717,tcameron(at)renmarkfinancial.com; CASABLANCA: Mostafa, Hammoud, InternationalDirector, Managem, 212 (-22)-95-65-71, Fax: 212-22-95-64-71,hammoud(at)managem-ona.com; Etruscan contact: WINDSOR, N.S.: Richard Gordon,Investor Relations, (902) 468-9270, Fax: (902) 468-9279,rgordon(at)etruscan.com; TORONTO, ONT.: Tony Hayes, Vice President, (416)368-0882, Fax: (416) 367-3638, 110112.157(at)compuserve.com; More extensiveinformation on Semafo can be found on our home page at http://www.semafo.com;More extensive information on Etruscan can be found athttp://www.etruscan.com

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