Mountain Lake Resources Inc V.MOA

Anaconda increases bid for New Island

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Anaconda Mining Significantly Increases Bid for New Island and Removes Minimum Tender Condition
TORONTO, July 30/CNW/ - Anaconda Mining Inc. ("Anaconda") (TSX: ANX) announced that itwill today file a Notice of Variation and Extension of the previouslyannounced July 11, 2010 Offer toPurchase all of the outstanding common shares of New Island ResourcesInc. ("the Offer") on the basis of 0.42 common shares of Anaconda foreach common share of New Island Resources Inc. ("New Island"); andAnaconda has waived the Minimum Tender Condition of the Offer that 662/3% of New Island Shares be deposited under the Offer. Under theAmended Offer any and all shares tendered will be accepted subject tothe terms and conditions of the Amended Offer.

The Anaconda Offer expiry date has been extended and will be open for acceptance until 5:00 p.m. (Toronto time) on Monday, August 9, 2010.

Lew Lawrick, President and CEO of Anaconda emphasized that, "Thistransaction will allow New Island shareholders to benefit immediatelyfrom the imminent cash flow and future exploration upside of Pine Cove.Importantly, New Island shareholders will participate in theadvancement of Anaconda's significant and active iron ore explorationand development portfolio in Chile."
Offer Reflects Full Value for New Island's Assets and Best Value for Shareholders
- The amended consideration, in the form of Anaconda common shares,
values New Island at approximately .14 cents per New Island share,
representing a premium of approximately 32% based on today's closing
trading prices for each company; and representing a substantial premium
of approximately 150% over the value of the closing price of New Island
on June 2, 2010, the day before the non binding and highly conditional
letter of intent was executed between Mountain Lake Resources Inc. and
New Island and was disclosed to the public.
- Given the Offer is a share exchange transaction, shareholders of New
Island will, upon the successful completion of the Offer, continue to
benefit from any significant developments from the Pine Cove Gold Mine
near Baie Verte, Newfoundland and will continue to share in any future
increases in value associated with the development and operation of the
existing assets of Anaconda and New Island.
- Today's closing price of the New Island common shares was
.105, and the closing price of the Anaconda common shares was .33.

Benefits of the Offer
Anaconda expects the combination of Anaconda and New Island to produce benefits for New Island shareholders including:
- New Island shareholders will participate immediately in the Pine Cove
Gold Mine cash flow versus waiting 12-18 months until after Anaconda's
capital expenditures are paid back;
- New Island shareholders will not suffer further significant dilution
during the capital payback period as a result of enjoying immediate
access to cash flow from the Pine Cove Gold Mine;
- New Island shareholders will gain exposure to the significant growth
potential of Anaconda's Chilean iron assets and access to a greatly
diversified asset base outside of the province of Newfoundland;
- New Island shareholders will gain exposure to the seasoned Anaconda
management team and independent Board of Directors that include
significant entrepreneurial company building and value creation
successes; accounting and audit committee experience, financial reporting
knowledge, M&A experience, capital markets and fundraising capability,
operations and mineral processing expertise, and industry accredited
corporate governance stewardship;
- New Island shareholders will participate in a growth-oriented company
with a cash flow platform and focused, motivated management team;
- Only the Anaconda Offer can provide New Island Shareholders with
opportunity to maximize the market valuation of the Pine Cove Gold Assets
through 100% ownership under one roof;
- Only the Anaconda Offer will remove the discount markets attribute to
minority non operating mining assets;
- Only the Anaconda Offer can provide New Island Shareholders the
benefits from operating synergies by combining 100% ownership under one roof.

Pursuant to the Offer, each New Island shareholder will receive 0.42 ofan Anaconda common share for each New Island common share tenderedunder the Offer. The takeover bid is subject to customary conditions,receipt of all required regulatory approvals, including the approval ofthe TSX Venture Exchange, the absence of any material adverse changewith respect to New Island, the absence of certain prohibitedactivities on the part of New Island (including security issuances,acquisitions and dispositions) and no untrue statements or omissions inNew Island's public disclosure.

Anaconda has waived the Minimum Tender Condition of the Offer that66 2/3% of New Island Shares be deposited under the Offer such thatunder the Amended Offer any and all shares tendered will be accepted.However, Anaconda intends to take all necessary steps to acquire anyNew Island common shares that remain outstanding following the expiryof the Offer if successful in obtaining over 66 2/3% of New IslandShares.

Full details of the Amended Offer are contained in the Notice ofVariation and Extension filed today with securities regulatoryauthorities and mailed today to New Island Shareholders.

The Offer will remain open until 5:00 p.m. (Toronto time) on August 9, 2010.

Investors may obtain a free copy of the Offer documents filed byAnaconda previously and today with Canadian securities regulators at www.sedar.com.In addition, you may request these documents free of charge, fromAnaconda's information agent, Kingsdale Shareholder Services Inc.within North America at 1-888-518-1558 (outside North America at 1-416-867-2272).
This press release does not constitute an offer to buy or sell, or thesolicitation of an offer to buy or sell, any of the securities of NewIsland. Such an offer can only be made pursuant to an offer to purchaseand accompanying an offering circular filed with the securitiesregulatory authorities in Canada.