Anaconda Mining Reports Record Gold Production at Pine Cove: 344.2 Troy Ounces in A Single Pour

TORONTO, May 19 /CNW/ - Anaconda Mining Inc. (“Anaconda“) - (TSX: ANX) is pleased to announce that, on May 4, 2011, it shipped a record amount of gold, 344.2 troy ounces, in a single pour at its Pine Cove gold mine (“Pine Cove“). The production was during an approximately 7-day period from April 25th through May 1st. In addition, overall recovery rates at the Pine Cove mill continue to improve. In the press release dated May 2, 2011, Anaconda reported that overall recovery had reached the low to mid 70% range. During the period from May 1st through May 15th, overall mill recovery was approximately 80%.

President and CEO, Dustin Angelo, stated, “Following up the record shipments in April with our largest single gold pour in the first week of May demonstrates the continued progress at Pine Cove. Ore throughput capacity has been very consistent at 950 to 1,000 tonnes per day for several weeks and now the overall mill recovery rate is reaching anticipated levels. At this rate, we expect May's shipments to exceed April's volume.“


ABOUT ANACONDA

Headquartered in Toronto, Canada, Anaconda is a mining and exploration company focused on operating the Pine Cove gold mine located on the Baie Verte Peninsula in Newfoundland, Canada and advancing the exploration and development of its iron ore portfolio in Chile with its joint venture partner, Inversiones SBX Limitada.



FORWARD LOOKING STATEMENTS

This document contains or refers to forward-looking information. Such forward-looking information includes, among other things, statements regarding the proposed amendment to the expiry date of warrants, 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 approval of the amendment to the expiry date of warrants 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.



For further information:

Anaconda Mining Inc.
Dustin Angelo
President and CEO
(647) 260-1248
Email: dangelo@anacondamining.com

or

Terre Partners
Joanna Longo
Investor Relations
(416) 775-8771
Email: jlongo@terrepartners.com

Company website: www.anacondamining.com