Anaconda Mining Initiates Diamond Drilling to Test Potential Down-Dip Extension of the Pine Cove Deposit

TORONTO, ONTARIO--(Marketwire - Jan. 14, 2013) - Anaconda Mining Inc. ("Anaconda" or "the Company") - (TSX:ANX) is pleased to report that diamond drilling has commenced at its Pine Cove mine on the Baie Verte Peninsula, Newfoundland and Labrador. The ten hole, 2,000-metre program will test the potential down-dip extension of the Pine Cove deposit. Drilling will focus on extending the gold mineralization intersected by previous drilling immediately north of the open pit. This mineralization lies approximately 100 metres down the projected dip of the Pine Cove deposit and has the potential to extend the mine resources.

Potential Down-Dip Extension

Historic, but widely spaced and mostly shallow, diamond drilling immediately north of the Pine Cove open pit has indicated potential for a down-dip extension to the Pine Cove deposit. Drilling carried out by Anaconda in 2011 (Anaconda Press Release, July 2, 2011) intersected significant gold values from a drill hole located less than 100 metres north of the rim of the ultimate open pit (based on the current mine plan and reserves) (Figure1). Drill hole PC-11-181 intersected 2.50 grams per tonne over a core length of 40.8 metres, including 7.18 grams per tonne over 3.2 metres and 11.44 grams per tonne over 4.3 metres. Follow-up diamond drilling completed in 2012 (Anaconda Press Release, Sept. 13, 2012) consisted of two holes collared north and south of PC-11-181. PC-12-188, which was collared 44 metres south of PC-11-181 on section 295550E (Figure 2) at a dip of -75 degrees and an azimuth of 175 degrees, deviated significantly to the east and did not intersect the projected mineralized zone. PC-12-189, which was drilled on the same section 25 metres north of PC-11-181 at an azimuth of 180 degrees and a dip of -75 degrees, intersected several zones of gold mineralization, the widest assaying 0.848 grams per tonne gold over a core length of 32 metres.

Current Diamond Drill Program

This 2013 diamond drilling program will attempt to trace the gold mineralization intersected in PC-11-181 both up dip towards the Pine Cove deposit and to the north and northeast. Initial drilling will focus on the potential up dip area south of PC-11-181 along section 295550E. Infill drilling will also target the immediate area beneath the bottom of the ultimate open pit to help with pit design and tighten ore definition in the deeper levels of the deposit (Figure 1). It is anticipated that the drill program will take six to eight weeks to complete.

President and CEO, Dustin Angelo, stated, "We are excited by the potential of the down-dip area to extend resources at the Pine Cove mine. Drill hole PC-11-181illustrates the potential of this area to host economically significant gold mineralization. Hole 181 intersected gold grades that are substantially higher than Pine Cove's average grade of 2.07 grams per tonne."

The diamond drilling is being carried out by New Valley Drilling of Springdale, Newfoundland. The NQ core will be logged and sampled by Anaconda personnel at the Pine Cove Mine site. Samples selected for analyses will be sawn; half the sample will be tagged and placed in a sealed plastic bag. Samples will be transported by Anaconda personnel to the Eastern Analytical Laboratory in Springdale, Newfoundland for fire assay. As part of the QA-QC protocol standards and blanks will be randomly inserted during the sampling process. The remaining core will be stored at the Pine Cove mine.

This news release has been reviewed and approved by David Evans, P. Geo., with Silvertip Exploration Consultants Inc., a "Qualified Person" under National Instrument 43-101.

Vancouver Resource Investment Conference

Anaconda Mining will be an exhibitor at the Vancouver Resource Investment Conference on January 20^th and 21^st at the Vancouver Convention Centre West. Please visit the Company's booth or come to a lunch presentation in Rooms 116 and 117 of the West Hall of the Convention Centre to learn more about Anaconda's producing gold mine and exploration potential.

ABOUT ANACONDA

Headquartered in Toronto, Canada, Anaconda is a growth oriented, gold mining and exploration company with a producing asset located on the Baie Verte Peninsula in Newfoundland, Canada called the Pine Cove mine.

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.

To view "Figure 1: Pine Cove Diamond Drill Plan – Proposed Drill Holes", please visit the following link: http://media3.marketwire.com/docs/ANAFIG1.jpg.

To view "Figure 2: Pine Cove Diamond Drill Plan – Section 295550E Looking West", please visit the following link: http://media3.marketwire.com/docs/ANAFIG2.jpg.