Anaconda Mining Inc. Announces Private Placement Financing

TORONTO, June 6, 2011 /CNW/ - Anaconda Mining Inc. ("Anaconda" or the "Company) - (TSX: ANX) is pleased to announce that it has closed a non-brokered private placement of 16,999,728 common shares at $0.07 per share. The common shares were issued, in part, to retire $1,049,981 of promissory notes, including accrued interest, that were coming due at the end of June. The remainder of the common shares issued generated gross cash proceeds of $140,000.

In addition, the Company issued on a non-brokered private placement basis 1,394,000 flow through common shares at $0.07 per share for gross proceeds of $97,580. The Company will use the flow through funds for exploration activities at its Pine Cove gold mine.

All of the common shares issued in the private placement are subject to a four-month hold period from the closing date of June 3, 2011.

The Toronto Stock Exchange ("TSX") has conditionally approved the listing of all of the common shares issuable pursuant to the private placement. Listing is subject to the Company fulfilling all of the requirements of the TSX.


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 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 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