Anaconda Mining Intersects 11.4 Metres of 2.19 g/t Gold Near Surface in New Mineralized Zone West of Pine Cove Deposit

TORONTO, ONTARIO--(Marketwire - Feb. 28, 2013) - Anaconda Mining Inc. ("Anaconda" or "the Company") - (TSX:ANX) is pleased to report it has completed phase one of the 2013 diamond drilling program at its Pine Cove mine on the Baie Verte Peninsula, Newfoundland. The ten-hole, 1919-metre program successfully explored the area immediately west and down-dip of the Pine Cove deposit.

Highlights:

Western Extension Area

• Hole PC-13-196 intersected 11.4 metres of 2.19 grams per tonne ("g/t") gold from a depth of 26.6 meters;
• Additional mineralization in hole PC-13-196 was intersected at 63.9 metres and again at 96.0 metres;
• PC-13-196 and PC-13-201 encountered new mineralization adjacent to the ultimate open pit boundary; and
• 1,000-metre follow-up drill program is scheduled for the end of March to expand this new zone and assess potential for open pit extension and mining cost reductions.

Down-dip Extension Area

• Hole PC-13-195 intersected 12.06 metres of 3.32 g/t gold from a depth of 168.66 metres;
• Hole PC-13-199 intersected 3.06 metres of 7.69 g/t gold from a depth of 147.2 metres:
• Four, widely spaced drill holes all intersected mineralization up dip from PC-11-181, which assayed 2.50 g/t gold over a core length of 40.8 metres (Anaconda Press Release, July 27, 2011); and
• The drilling continues to demonstrate the potential continuity of mineralization within the down-dip zone.

President and CEO, Dustin Angelo, stated, "Phase one of the 2013 diamond drilling program has been a success. In the ten-hole program, Anaconda discovered a potential, new gold zone adjacent to the western part of our current pit. Mineralization in hole PC-13-196 is shallow and similar grade to what we are mining in our pit. A new, near surface gold zone could have a significant, positive impact on our mine plan. Just as important, we've made progress on demonstrating the potential continuity of gold mineralization in the down-dip area, anchored by hole PC-11-181. Four more holes drilled between the pit and PC-11-181 returned mineralization. As a result of our successful phase one 2013 diamond drilling program, we will do an additional 1,000 metres in March."

Table 1:

Drill Hole	Dip	Depth	From	To	Width	Gold grams/tonne
Down-Dip Extension
PC-13-195	90	188	168.66	180.72	12.06	3.32
Including			168.66	176.58	7.92	4.67
Including			171.66	172.62	0.96	12.30
PC-13-198	90	231.4	119.00	120.80	1.08	2.33
			171.04	177.98	6.94	1.74
Including			171.04	173.13	2.09	3.51
Including			176.00	177.98	1.98	1.89
			193.86	197.07	3.21	1.26
PC-13-199	90	289.3	147.20	150.26	3.06	7.69
Including			147.20	148.17	0.97	20.22
PC-13-200	90	163.1	49.00	50.00	1.00	1.56
			94.88	95.88	1.00	1.36
			142.65	144.50	1.85	3.12
Western Extension
PC-13-196	90	146.9	26.60	38.00	11.40	2.19
			49.00	54.25	5.25	1.28
			58.05	60.35	2.67	1.39
			63.86	68.00	4.14	3.41
			96.02	102.20	6.18	2.16
Including			99.00	99.97	0.97	8.78
			111.00	112.00	1.00	6.13
			116.97	126.00	9.03	0.83
PC-13-197	90	160.9	138.50	139.51	1.01	2.61
PC-13-201	90	169.5	16.63	18.86	2.23	1.60
			95.22	96.23	1.01	1.23
			138.50	146.27	7.77	3.93
Including			142.20	143.20	1.00	17.74
PC-13-202	90	191	Assays Pending
PC-13-203	90	208.9	Assays Pending
PC-13-204	90	170.1	Assays Pending

Western Extension Area:

Drilling along the western margin of the Pine Cove deposit, adjacent to the ultimate open pit boundary, in an area with no previous drilling, has intersected a zone of gold mineralization referred to as the Western Extension. Four of six diamond-drill holes (PC-196, 201, 202 and 203; Figure 1; Table 1) have intersected zones of pyritized wallrock developed marginal to structurally-controlled brecciated quartz and quartz veining. Hole PC-13-196 returned multiple zones of gold mineralization including: 2.19 g/t gold over a core length of 11.4 metres from a vertical depth of 26.6 to 38.0 metres; and 1.28 g/t gold over a core length 5.25 metres from a vertical depth of 49.0 to 54.25 metres (Figure 2). Hole PC-13-201, which was collared 25 metres west of PC-13-196 intersected 3.93 g/t gold over a core length of 7.77 metres (Figure 1). Drill holes PC-13-197 and PC-13-204 both appear to have cut the mineralization off to the southeast, while the zone remains completely open to the northwest. Assay results are pending for holes PC-13-202, PC-13-203 and PC-13-204.

Down-dip Extension Area:

Four diamond drill holes (PC-13-195, 198, 199 and 200; Figure 1) successfully tested the down- dip area up dip from PC-11-181 (Anaconda Press Release July 27, 2011) which assayed 2.50 g/t gold over a core length of 40.8 metres. PC-11-181 occurs approximately 200 metres north of the ultimate open pit boundary (Figure 3). The widely spaced drill holes all intersected gold mineralization. PC-13-195, which was collared on section 295550E 145 metres south of PC-11- 181, assayed 3.32 g/t gold over a core length of 12.06 metres (Table 1). PC-13-198 was collared 25 metres east of PC-13-195 and it intersected 1.74 g/t gold over a core length of 6.94 metres. Hole PC-13-199 was drilled to test the area 25 metres east of the PC-11-181 intersection. It assayed 7.69 g/t gold over a core length of 3.06 meters, which included 20.22 g/t gold over 0.97 meters. Drill hole PC-13-200 tested the mineralized zone 25 metres south and up dip of PC-13- 195. It returned 3.12 grams g/t over a core length of 1.85 metres. The drilling demonstrates potential continuity of mineralization within the down-dip zone. The zone remains open to the north and northeast and additional infill drilling will be required.

Note: All assay intervals refer to core length and at present true thicknesses of mineralized zones are not known. The diamond drilling was carried out by New Valley Drilling of Springdale, Newfoundland and was supervised by Silvertip Exploration Consultants Inc. The NQ core was logged and sampled at the Pine Cove mine site. Samples selected for analyses were sawn and half the sample was tagged and placed in a sealed plastic bag. Samples generally comprised one metre core intervals. Samples were transported by Silvertip personnel to the Eastern Analytical Laboratory in Springdale, Newfoundland for fire assay. As part of the QA-QC protocol, standards and blanks were randomly inserted during the sampling process. The remaining core is 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.

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: Diamond Drill Holes Plan View, please visit the following link: http://media3.marketwire.com/docs/856606fig1.pdf.

To view Figure 2: Diamond Drill Section 295425E Looking West, please visit the following link: http://media3.marketwire.com/docs/856606fig2.pdf.

To view Figure 3: Diamond Drill Section 295550E Looking West, please visit the following link: http://media3.marketwire.com/docs/856606fig3.pdf.