Anaconda Generates $6.4M in Revenue in FY Q2 2014; Pine Cove Mine Sells Nearly 3,900 Ounces of Gold

TORONTO, ONTARIO--(Marketwired - Dec 16, 2013) - Anaconda Mining Inc. ("Anaconda" or "the Company") - (TSX:ANX) is pleased to announce certain financial and operating results for the fiscal 2014 second quarter ended November 30, 2013 ("Q2"). The Company sold 3,852 ounces of gold and generated $5,299,446 in revenue at Pine Cove at an average sales price of $1,376 per ounce. The Q2 sales volume was 21% greater than Q2 of fiscal 2013; while the Q2 revenue was 2% less than Q2 of fiscal 2013 due to a lower gold price. For the first six months of fiscal 2014, the Company sold 7,948 ounces of gold and generated $11,031,229 in revenue at Pine Cove at an average sales price of $1,388 per ounce. Compared to the first six months of fiscal 2013, sales volume increased 7% while revenue at Pine Cove decreased by 10%, again because of a lower sales price. The Company expects to file its full financial statements on or before January 14, 2014.

During the second quarter, Anaconda received approximately US$1,125,000 in cash related to milestone and royalty payments from the sale of the Company's Chilean iron ore assets. Together with the revenue generated at Pine Cove, the Company grossed approximately $6.4M in cash receipts for Q2. Anaconda expects to receive future quarterly royalty payments of between US$125,000 and US$250,000. The Company is also scheduled to receive US$2million by May 2015. Lastly, Anaconda can earn additional lump sum payments based on the price at which the iron ore is sold for certain volumes of production.

President and CEO, Dustin Angelo, stated, "The Company continues to progress in fiscal 2014 and build upon the success that was achieved during last year when Anaconda had its best financial and operational results despite extremely challenging conditions. Thanks to more consistent, higher mill throughput, we realized greater three and six month sales volume in fiscal 2014 compared to the same period last year. We've also been successful in our short term hedging strategy which has yielded a higher weighted average sales price versus the Canadian spot price during the fiscal year. In addition, we are beginning to receive meaningful and consistent cash from Chile. Just as importantly, we dramatically increased the growth potential of Anaconda by entering into option agreements for Deer Cove and Stog'er Tight, two highly prospective, advanced gold projects on the Ming's Bight Peninsula. With a positive cash flowing mine and 6,000 hectares of contiguous exploration property, the Company has all of the elements to continue increasing production and profits."

FY Q2 2014 Operations Overview:

During Q2, the Pine Cove mill operated for approximately 80 days at an availability rate of 87%. The mill processed 76,114 dry tonnes of ore (956 tonnes per operating day) at an average head grade of 1.80 grams per tonne. During the month of November, the Baie Verte Peninsula experienced a winter storm which caused power outages at the mine site. As a result of the weather and subsequent difficulty in restarting the ball mill, the Pine Cove mill was down for a total of six (6) days during the month. Despite the interruption, the Company processed almost exactly the same amount of tonnes in Q2 as it did in the similar period in fiscal 2013 because of an 8% year-over-year increase in tonnes per operating day. Overall mill recovery averaged 83%, as expected.

During Q2, the mine experienced dewatering issues caused by power outages. The combination of power outages and unusually high precipitation (wind, snow, and rain) delayed access to the newly developed bench at the 5006 level where higher grade ore mining is scheduled. Mining activities were therefore redirected to upper benches to allow dewatering of the lower yet potentially higher grade areas of the mine. All activities have returned to normal after the first week of December.

The following table summarizes the key operating statistics for the three and six months ended November 30, 2013 and November 30, 2012:

NOTE: Operating statistics exclude changes in in-circuit inventory.

ABOUT ANACONDA

Headquartered in Toronto, Canada, Anaconda is a growth oriented, gold mining and exploration company with a producing asset located on the Baie Verte Peninsula in Newfoundland, Canada called the Pine Cove mine.

FORWARD LOOKING STATEMENTS

This document contains or refers to forward-looking information. Such forward-looking information includes, among other things, statements regarding targets, estimates and/or assumptions in respect of future production, mine development costs, unit costs, capital costs, timing of commencement of operations and future economic, market and other conditions, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to: the final approval of the private placement by the Toronto Stock Exchange; the grade and recovery of ore which is mined varying from estimates; capital and operating costs varying significantly from estimates; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of the any project caused by unavailability of equipment, labour or supplies, climatic conditions or otherwise; termination or revision of any debt financing; failure to raise additional funds required to finance the completion of a project; and other factors. Additionally, forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "may," "estimates," "expects," "indicates," "targeting," "potential" and similar expressions. These forward-looking statements, including statements regarding Anaconda's beliefs in the potential mineralization, are based on current expectations and entail various risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no responsibility to update them or revise them to reflect new events or circumstances, except as required by law.