ANACONDA'S PINE COVE GOLD MINE GENERATES OVER $900,000 IN EBITDA IN APRIL AND MAY 2011

TORONTO, June 27, 2011 /CNW/ --
TORONTO, June 27, 2011 /CNW/ - Anaconda Mining Inc. ('Anaconda' or 'the
Company') - (TSX: ANX) is pleased to provide an update on the
performance of the Pine Cove mine, located on the Baie Verte Peninsula,
Newfoundland. Since terminating the concentrate processing agreement at
Nugget Pond with Rambler Metals and Mining Canada Limited on April 13,
2011, Anaconda has been operating its entire gold processing circuit at
the Pine Cove mill. Overall gold recovery from the mill has improved to
nearly 80% due, primarily, to the production of a higher grade
concentrate. In addition, the mill has maintained ore throughput at 950
to 1,000 tonnes per day.

As a result of the enhanced performance from the mill and the processing
performed at Nugget Pond, Anaconda generated positive earnings before
interest, taxes, depreciation and amortization ('EBITDA'), before
inventory adjustment, at the Pine Cove operating level and the
corporate level for both April and May.  The following table summarizes
selected operating and financial results for these two months.

 _________________________________________________________________
|                                           | April '11|   May '11|
|___________________________________________|__________|__________|
|OPERATING STATISTICS:                      |          |          |
|___________________________________________|__________|__________|
|Calendar days                              |        30|        31|
|___________________________________________|__________|__________|
|Operating days                             |        28|        29|
|___________________________________________|__________|__________|
|Availability                               |       93%|       92%|
|___________________________________________|__________|__________|
|Dry tonnes processed                       |    26,997|    27,735|
|___________________________________________|__________|__________|
|Tonnes per 24-hour day                     |       968|       972|
|___________________________________________|__________|__________|
|Grade                                      |      1.85|      1.72|
|___________________________________________|__________|__________|
|Pine Cove only plant recovery              |       70%|       78%|
|___________________________________________|__________|__________|
|                                           |          |          |
|___________________________________________|__________|__________|
|Gold sales volume (troy oz.)               |       950|     1,081|
|___________________________________________|__________|__________|
|                                           |          |          |
|___________________________________________|__________|__________|
|FINANCIAL RESULTS:                         |          |          |
|___________________________________________|__________|__________|
|Revenue                                    |$1,366,617|$1,584,730|
|___________________________________________|__________|__________|
|Pine Cove EBITDA (before inv. adj.)        |  $416,754|  $506,641|
|___________________________________________|__________|__________|
|Pine Cove   Corp. EBITDA (before inv. adj.)|  $274,809|  $341,998|
|___________________________________________|__________|__________|
|                                           |          |          |
|___________________________________________|__________|__________|
|UNIT ECONOMICS:                            |          |          |
|___________________________________________|__________|__________|
|Revenue per oz. sold                       |    $1,438|    $1,466|
|___________________________________________|__________|__________|
|Pine Cove cash cost per oz. sold           |    $1,000|      $998|
|___________________________________________|__________|__________|
|Pine Cove   Corp. cash cost per oz. sold   |    $1,149|    $1,150|
|___________________________________________|__________|__________|

May marked the first full month of operations using the entire Pine Cove
mill circuit at the improved operating levels. Pine Cove generated
approximately $500,000 in EBITDA, before inventory adjustment, and had
a cash cost per ounce sold of $998 despite an average grade of 1.72
grams per tonne.  Year-to-date May 2011 grade has been approximately 2
grams per tonne and Anaconda expects the grade to steadily increase,
from the May levels, through fiscal 2012, which began June 1, 2011. In
addition, during fiscal 2012, the Company expects to drive down unit
costs from current levels as Pine Cove's gold output increases. Given
the renewed confidence in the performance of the mill, the Company has
discontinued any discussions with third parties regarding shipping a
gold concentrate product off-site.

As a result of continuing progress at the Pine Cove mill, the Company
generated sales volume of 1,081 troy ounces in May and had record sales
volume for the fiscal fourth quarter 2011 of 2,363 troy ounces.
Un-hedged gold sales also allowed the Company to capitalize on rising
gold prices.  The table below summarizes the strong upward trend in
quarterly sales volume for fiscal year 2011.

 _____________________________________________________________________
|               |FY Q1 '11| FY Q2 '11| FY Q3 '11| FY Q4 '11|   FY 2011|
|_______________|_________|__________|__________|__________|__________|
|Sales volume   |      391|       931|     1,659|     2,363|     5,345|
|_______________|_________|__________|__________|__________|__________|
|Quarterly      |       --|      138%|       78%|       42%|        --|
|growth         |         |          |          |          |          |
|_______________|_________|__________|__________|__________|__________|
|               |         |          |          |          |          |
|_______________|_________|__________|__________|__________|__________|
|Revenue        | $496,961|$1,136,082|$2,260,691|$3,415,052|$7,308,785|
|_______________|_________|__________|__________|__________|__________|
|Revenue per oz.|   $1,270|    $1,220|    $1,363|    $1,445|    $1,367|
|_______________|_________|__________|__________|__________|__________|

As stated in the press release dated June 6, 2011, the Company has
recently undertaken exploration activities at the Pine Cove mine. More
specifically, it has drilled three holes totaling approximately 800
linear meters in an area down dip of holes drilled in 2007 (See press
release dated March 19, 2008). The current target holes are designed to
further test the down-dip potential of the existing deposit as well as
a possible strike extension.  Three holes, drilled on 50-meter
sections, have been completed. The Pine Cove exploration team is
currently in the process of core logging and sample cutting for
delivery of samples to a third-party assay lab. The Company expects to
have all assay results back by the end of July or the beginning of
August, depending on lab availability.

President and CEO, Dustin Angelo, stated, 'The Pine Cove mill has
officially completed the commissioning phase and is in a period of
optimization. There is a high level of confidence in the operation and
it is expected that Pine Cove will continue to improve performance in
fiscal 2012, resulting in higher gold output and lower unit costs. In
addition, we look forward to the prospect of extending the mine life
through the exploration of the down dip extension as well as other
anomalous exploration targets within the project area.'

The financial results above are not presented on a consolidated basis to
include activities in the subsidiaries associated with the Chilean iron
ore assets. The amounts only represent activities accounted for at the
Pine Cove and corporate level.  All amounts are in Canadian dollars
unless stated otherwise.  The financial and operating results are
unaudited and subject to adjustment.

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
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.

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Company website: www.anacondamining.com