Anaconda Mining Initiates Drill Program at Lower Seal Harbour in Nova Scotia, Located 1.6 KM From Its Goldboro Gold Project

TORONTO, January 6, 2021 - Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX)(OTCQX:ANXGF) is pleased to announce that it has initiated a 1,000 metre diamond drill program ("Drill Program") at the past producing Lower Seal Harbour Property ("Lower Seal Harbour"), located 1.6 kilometres southeast of the Company's 100%-owned Goldboro Gold Project in Guysborough County, Nova Scotia ("Goldboro") (Exhibit A). As previously announced in July 2019, the Company has entered into an option agreement to acquire a 100% interest in Lower Seal Harbour.

The Drill Program is focused on testing known gold mineralization hosted on the north limb of an anticlinal structure that is parallel to a similar anticline that hosts the Goldboro Deposit, located approximately 3 kilometres to the north (Exhibit A). The Program will include the twinning of two historic drill holes to confirm high-grade intersections and to sample adjacent wall rock for low-grade mineralization, and testing whether the anticlinal structure immediately south of historical mining activity contains gold mineralization at shallow levels, particularly within the center of the anticline. The Company also plans to drill test two geophysical IP chargeability anomalies that have not been previously tested.

Highlights of the Lower Seal Harbour Property include:

• Proximity to Anaconda's Goldboro Gold Project, within a similar geological setting and mineralization characteristics;
• Significant high-grade, historical drill intercepts* reported by previous exploration work conducted in the 1980's consisting of 9,506.9 metres in thirty-nine drill holes, including:
  • 18.91 grams per tonne ("g/t") gold over 1.69 metres including 87.54 g/t over 0.33 metres in hole LSH-88-021;
  • 7.49 g/t gold over 3.65 metres including 106.01 g/t over 0.25 metres in hole LSH-87-011;
  • 9.63 g/t gold over 1.46 metres in hole LSH-87-009; and
  • 5.14 g/t gold over 2.18 metres in hole LSH-88-021;
• History of intermittent past production** from 1904-1949 and reported 34,295 ounces of recovered gold (394,905 tonnes mined); and
• Historic mineralization remains open for expansion along strike and at depth.

" Our focus at Lower Seal Harbour is the discovery of further gold mineralization based on our experience at Goldboro, which is now the single largest gold deposit in Nova Scotia. The current, early-stage work at Lower Seal Harbour is focused on determining the number of geological environments that host gold including previously untested wall rock adjacent to past workings; drill testing the hinge of the anticline, which in the Goldboro Deposit represents one of the key mineralized environments; and drilling previously untested geophysical anomalies that have strong resemblances to anomalies at Goldboro. Should the Lower Seal Harbour Property host another gold deposit, there is the potential to further expand the larger Goldboro Gold Project in the future."

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

Geology and History of Past Production
The Lower Seal Harbour Mine produced 34,295 ounces of gold, after mining 394,905 tonnes intermittently between 1904 and 1949. Gold is hosted in both the quartz veins and anticlinal host greywacke and argillite of the Goldenville Formation, with accessory arsenopyrite, pyrite and galena. Previously recognized mineralization is hosted solely on the limb of the fold with no past exploration undertaken in the hinge of the fold, which represents one of the key mineralized environments in the Goldboro Deposit. Thirty-nine (39) broad-spaced historical drill holes, totaling 9,506.9 metres have tested the Property to date.

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.

* All quoted drill core sample intervals, grades and production statistics have been compiled from historic assessment reports obtained from the Government of Nova Scotia. Representative drill core from drilling in the 1981, stored in Nova Scotia government facilities, have been inspected by Anaconda geologists for Lower Seal Harbour, though no mineralized core remained. The observed core was considered representative of the host rocks as described in terms of rock type and alteration. A 1988 assessment report related to drilling programs for Lower Seal Harbour were completed by Scotia Prime Resources Inc. with metallic screen fire assay analysis completed by Bondar-Clegg and Company Ltd. of Ottawa, Ontario. No QAQC procedures were noted in the Scotia Prime report.

**Historic production statistics for the Lower Seal Harbour are based on information compiled by the Government of Canada, Geological Survey and taken directly from government reports, specifically GEOLOGICAL SURVEY OF CANADA OPEN FILE 7150, Environmental geochemistry of tailings, sediments and surface waters collected from 14 historical gold mining districts in Nova Scotia (2012) by M.B. Parsons, K.W.G. LeBlanc, G.E.M Hall, A.L. Sangster, J.E. Vaive and P. Pelchat as well as Geological Association of Canada, Special Publication No. 5, Mineral Deposits of Canada, "Metallogenic Summary of the Meguma Gold Deposits, Nova Scotia", (2007) by Sangster, A. L. and Smith, P.K.

Readers are cautioned that data quoted in this press release predates the 43-101 instrument and it was not possible for Anaconda representatives to resample historic mineralized intervals. Sufficient work has not been completed by a Qualified Person to verify and validate the specific assay results of historical work.

Widths from drill core intervals reported in this press release are presented as core lengths only. True widths are unknown.

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. 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, 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:

Exhibit A. A map showing the location of the Lower Seal Harbour Property near the Goldboro Gold Project Deposit as well as the trace of the anticlinal structures that host gold mineralization.

SOURCE: Anaconda Mining Inc.