Anaconda Mining Provides an Update on the Goldboro Gold Project Optimization Process and Mineral Resource

TORONTO, November 26, 2020 - Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX)(OTCQX:ANXGF) is pleased to provide an update on its 100%-owned Goldboro Gold Project ("Goldboro" or the "Project") in Nova Scotia, Canada. The Company, working closely with its external consultant Nordmin Engineering Inc., initiated optimization work on the Project earlier in the year based on opportunities identified in connection with the ongoing definitive feasibility study ("DFS"). This included a 15,000 metre infill drill program to support an updated mineral resource in all three gold systems within the Goldboro deposit (West Goldbrook, Boston Richardson, East Goldbrook), with the objective of upgrading certain Inferred Mineral Resources into Indicated Mineral Resources as well as more detailed metallurgical work to establish recovery profiles on lower grade (< 2.0 grams per tonne ("g/t")) mineralization in an open pit scenario.

Further studies have indicated that the scale and potential of the Goldboro Gold Project is changing significantly, and we have identified certain opportunities which may markedly increase the Project's potential value, including:

• The recognition and confirmation of more low-grade mineralization at shallow levels (less than 175 metres) of the deposit than was previously modelled;
• The confirmation that mineralization within, and between, the three gold systems of the Goldboro deposit are continuous within the updated resource model; and
• The potential for an open-pit dominant, higher-tonnage development scenario.

In light of these opportunities, the Company anticipates that it will issue an updated Mineral Resource in the first quarter of 2021. It has also initiated additional metallurgical, geotechnical, and mine and mill design work, as well as increased baseline environmental studies, to compliment an expanded view of the Project. The Company expects to be in a position to have a completed DFS, based on the expanded scope as outlined above, in the fourth quarter of 2021, well within the timelines for permitting.

"We are extremely excited about the tremendous opportunities that have been identified through ongoing drilling, resource modelling and metallurgical programs as part of the optimization process at the Goldboro Gold Project. The potential impact on the Project's economics and key economic metrics could create significant incremental value. The recognition of lower grade mineralization and improved continuity, particularly at depths amenable to open-pit mining, may contribute to improving those key economic metrics. We believe the updated mineral resource, which we expect to issue in the first quarter of 2021, will demonstrate these opportunities. Consequently, we have expanded the scope of the definitive feasibility study, allowing for additional technical studies to focus on an open-pit dominant scenario, and expect to complete the associated study in the fourth quarter of 2021. Given the permitting timelines, it's a fortuitous opportunity to potentially add significant value to the Goldboro Gold Project as we work towards a production decision."

~ Kevin Bullock, President and CEO, Anaconda Mining Inc.

Working Towards an Updated Mineral Resource in the First Quarter of 2021
Infill drilling and resource modelling in 2020 has focused on refining the geological model and the trends of mineralization within individual modelled solids, giving particular attention to low-grade mineralization both within and outside of modelled solids across the Goldboro deposit. These refinements are anticipated to result in a more representative geological model and grade distribution within the modelled solids, including an improved understanding of the plunge direction of the mineralization, providing more accuracy on continuity around anticlinal fold closures.

In addition, the creation of a background resource model to capture mineralization outside of modelled solids have identified further mineralized material at less than 2.0 g/t gold previously not considered for development. The combination of a more representative geological model and the creation of a separate background model for low-grade mineralization may suggest, among other things, higher tonnage from an expanded open-pit scenario with higher mill throughput.

The infill drill results from the current 15,000 metre program will be incorporated into the refined mineral resource model and is expected to upgrade certain Inferred Mineral Resources to the Measured and Indicated categories across the Goldboro deposit, which will also be incorporated into the ongoing DFS. The updated mineral resource is expected to be announced in the first quarter of 2021.

Continuing Towards a Definitive Feasibility Study
The recognition of the expanded opportunities and potential scale of the Goldboro mineral resource has necessitated an increase in the scope of the DFS, which the Company is now expecting to complete in the fourth quarter of 2021. The Company has already commenced certain activities of this expanded scope, including further metallurgical testing on the lower-grade portions of the mineral resource, geotechnical drilling to support site infrastructure and analysis for pit design purposes, mill design, and all related environmental baseline work required for a potentially expanded project.

This news release has been reviewed and approved by Paul McNeill, P. Geo., VP Exploration with Anaconda Mining Inc., a "Qualified Person", under National Instrument 43-101 Standard for Disclosure for Mineral Projects.

A version of this news release will be available in French on Anaconda's website (www.anacondamining.com) in two to three business days.

ABOUT ANACONDA
Anaconda is a TSX and OTCQX-listed gold mining, development, and exploration company, focused in Atlantic Canada. The company operates mining and milling operations in the prolific Baie Verte Mining District of Newfoundland which includes the fully-permitted Pine Cove Mill, tailings facility and deep-water port, as well as ~11,000 hectares of highly prospective mineral lands including those adjacent to the past-producing, high-grade Nugget Pond Mine at its Tilt Cove Gold Project. Anaconda is also developing the Goldboro Gold Project in Nova Scotia, a high-grade resource and the subject of an on-going feasibility study.

FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking information" within the meaning of applicable Canadian and United States securities legislation, including, but not limited to, the estimated timing of the updated mineral resource and DFS, and results of work completed in connection with the updated mineral resource estimate and DFS. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Anaconda to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining such as economic factors as they effect exploration, future commodity prices, changes in foreign exchange and interest rates, actual results of current production, development and exploration activities, government regulation, political or economic developments, developments and restrictions as a result of the COVID-19 pandemic, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with development activities, employee relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of resources, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in Anaconda's annual information form for the year ended December 31, 2019, available on www.sedar.com. Although Anaconda has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Anaconda does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

FOR ADDITIONAL INFORMATION CONTACT:

Anaconda Mining Inc.
Lynn Hammond
VP, Corporate Affairs
(709) 330-1260
lhammond@anacondamining.com

SOURCE: Anaconda Mining Inc.