Anaconda Mining Reports Q1 2022 Production Results and Announces Change to the Board of Directors

TORONTO, April 18, 2022 - Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX)(OTCQX:ANXGF) is today announcing production results and certain financial information from the three months ended March 31, 2022 ("Q1 2022"), as well as providing a production update with regards to a water management issue at the Argyle open pit mine ("Argyle") which impacted mining operations. All dollar amounts are in Canadian Dollars. The Company expects to file its first quarter financial statements and management discussion and analysis by April 28, 2022.Previous ItemNext Item

"During the first quarter of 2022, Point Rousse produced 2,813 ounces of gold, an 11% increase compared to the prior year however lower than plan as operational challenges at Argyle required mill throughput to be maintained with low-grade Pine Cove stockpiles. The temperatures at site during the period, fluctuating above and below the freezing point, impacted our ability to drill and blast at times and material handling was impeded due to frozen stockpiles. Moreover, in early March we experienced a water management issue with the detection of ammonia levels in the Argyle pit which exceeded our discharge parameters, thereby impacting our ability to continue mining. The site operations team immediately mobilized a UV water treatment system which achieved an instant improvement in water quality based on independent lab testing. The water quality is now compliant, and the Company has begun discharging water from the pit sump, which should allow for a return to continuous operations this week. The Company is assessing the impact on production for the remainder of the year and will provide further updates accordingly.

The Company confirms that at no time during this incident was any impacted water discharged into the environment, as the Company's robust water management protocols identified the matter in a timely manner. The Company remains committed to the strong environmental management it has demonstrated over the past 10 years of operation in the Baie Verte Peninsula."

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

The Company is also announcing that it has accepted the resignation of its Chairman, Jonathan Fitzgerald, from the Board of Directors to pursue other professional interests. Mary-Lynn Oke has been appointed interim Chair of the Board of Directors while the Company undertakes a search for a new Chair. Furthermore, as a result of his resignation, Mr. Fitzgerald will no longer stand for re-election as a Board member at the Company's annual and special shareholders meeting scheduled for Thursday, May 12, 2022. The remaining five members of the Board will continue to stand for re-election at the shareholder meeting.

"I would like to thank Jonathan for his contributions to the Company's success over the past 5-plus years, particularly in advancing the Goldboro Gold Project. While we fully understand and support his decision to resign and focus his attention on other interests, we appreciate his guidance in setting the Company up for growth and to build significant shareholder value."

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

First Quarter 2022 Highlights

• Anaconda sold 3,491 ounces of gold in Q1 2022, generating metal revenue of $8.0 million at an average realized gold price¹ of $2,296 (US$1,813) per ounce sold.
• Point Rousse produced 2,813 ounces of gold in Q1 2022, an 11% increase compared to Q1 2021, however lower than planned due to operational challenges in the Argyle Pit which required mill throughput to be maintained with low-grade Pine Cove stockpiles.
• Mine operations moved 68,877 tonnes of ore during the first quarter from Argyle, an increase over the previous year but behind plan for 2022, as water management issues impacted the mine's ability to drill and blast in March.
• The Pine Cove Mill processed 104,495 tonnes during Q1 2022, of which 28,301 tonnes were from low-grade Pine Cove stockpiles. The mill achieved a strong average recovery rate of 86.1% despite the lower-grade profile of mill throughput.
• For Stog'er Tight, the Company is finalizing internal pit designs in anticipation of a potential development scenario; the Company has now received tree cutting and Crown Land permits and is in the process of finalizing the Mining Lease.
• Exploration drilling at Point Rousse identified two new mineralized systems within the Goldenville Trend, intersecting 2.09 g/t over 5.7 metres and 1.38 g/t over 5.7 metres (press release dated March 31, 2022).
• As of March 31, 2022, the Company had a cash balance of $3.6 million and an undrawn revolving credit facility of $3.0 million. Preliminary working capital deficit¹ at the end of the quarter was $6.5 million, which includes $3.2 million in deferred revenue associated with a gold prepayment facility which will be delivered into over the next six months. The deficit also reflects the short-term impact of the cessation of mining due to the water management issue.

First Quarter Operating Statistics

Operations Overview for the Three Months Ended March 31, 2022

Anaconda sold 3,491 ounces of gold during the first quarter of 2022, generating gold revenue of $8.0 million at an average realized gold price¹ of $2,296 (US$1,813) per ounce sold. Gold production of 2,813 ounces was an 11% increase compared to Q1 2021, however lower than planned due to water management challenges in the Argyle Pit which required mill throughput to be maintained with low-grade Pine Cove stockpiles.

During Q1 2022, the mine operations moved 68,877 tonnes of ore, however mine production was impeded in March due to a water treatment issue whereby the quantity of water combined with the presence of elevated ammonia levels prevented further mine production. Corrective action was immediately taken with UV water treatment plants mobilized, which demonstrated an instant improvement in water quality based on independent lab testing. While waste mine development continued to be a focus to enable access to the core of the mineral resource, the delayed ore production resulted a higher than plan strip ratio of 11.4 waste tonnes to ore tonnes. The water quality is now compliant, and the Company has begun discharging water from the pit sump, which should allow for a return to continuous operations this week.

The Pine Cove Mill processed 104,495 tonnes during Q1 2022, an increase of 13% compared to the first quarter of 2021 when the Company experienced unplanned maintenance relating to the ball mill and the jaw crusher. The mill however fell short of plan in the most recent quarter due to fluctuating temperatures during the period which impacted material handling due to frozen stockpiles and wet ore also created issues with screening, slowing crushing rates. The average grade milled in Q1 2022 was 0.97 g/t as 27% of mill throughput was from lower grade stockpiles. The mill though was able to achieve an average recovery rate of 86.1%, an increase over the comparative period, despite the lower grade profile compared to Q1 2021.

¹ Refer to Non-IFRS Measures Section below.

Qualified Person

Kevin Bullock, P. Eng., President and CEO, Anaconda Mining Inc., is a "qualified person" as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this press release.

ABOUT ANACONDA

Anaconda Mining is a TSX and OTCQX-listed gold mining, development, and exploration company, focused in the top-tier Canadian mining jurisdictions of Newfoundland and Nova Scotia. The Company is advancing the Goldboro Gold Project in Nova Scotia, a significant growth project subject to a positive Feasibility Study with Probable Mineral Reserves of 1.15 million ounces of gold (15.80 million tonnes at 2.26 g/t gold), Measured and Indicated Mineral Resources inclusive of Mineral Reserves of 2.58 million ounces (21.6 million tonnes at 3.72 g/t gold) and additional Inferred Mineral Resources of 0.48 million ounces (3.18 million tonnes at 4.73 g/t gold) (Please see the 'NI43-101 Technical Report and Feasibility Study for the Goldboro Gold Project, Eastern Goldfields District, Nova Scotia' on January 11, 2022 for further details). Anaconda also 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 ~15,000 hectares of highly prospective mineral property, including those adjacent to the past producing, high-grade Nugget Pond Mine at its Tilt Cove Gold Project.

NON-IFRS MEASURES

Anaconda has included certain non-IFRS performance measures as detailed below. In the gold mining industry, these are common performance measures but may not be comparable to similar measures presented by other issuers. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Average Realized Gold Price per Ounce Sold - In the gold mining industry, average realized gold price per ounce sold is a common performance measure that does not have any standardized meaning. The most directly comparable measure prepared in accordance with IFRS is gold revenue. The measure is intended to assist readers in evaluating the revenue received in a period from each ounce of gold sold.

Average realized gold price per ounce sold is reconciled to the preliminary, unaudited condensed interim consolidated statement of comprehensive income as follows:

Working Capital - Working capital is a common measure of near-term liquidity and is calculated by deducting current liabilities from current assets.

Working capital is reconciled to the preliminary, unaudited condensed interim consolidated statement of financial position as follows:

For further details about non-IFRS measures, please refer to the section "Non-IFRS Measures" in the Company's Management's Discussion and Analysis for the year ended December 31, 2021, which is available on the Company's website and on SEDAR at www.sedar.com.

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, 2021, 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.
Kevin Bullock
President and CEO
(647) 388-1842
kbullock@anacondamining.com

Reseau ProMarket Inc.
Dany Cenac Robert
Investor Relations
(514) 722-2276 x456
Dany.Cenac-Robert@ReseauProMarket.com

SOURCE: Anaconda Mining Inc.