Anaconda Mining Intersects a VMS System at the Tilt Cove Gold Project

TORONTO, ON / ACCESSWIRE / January 28, 2021 / Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX)(OTCQX:ANXGF) is pleased to announce results from the initial stages of an ongoing 10,000 metre exploration drilling program (the "Drill Program") at its Tilt Cove Gold Project ("Tilt Cove"), located within the Baie Verte Mining District in Newfoundland, approximately 45 kilometres by road from the Company's Pine Cove Mill and long-term tailings facility.

Results have been received for ten (10) holes totaling 1,641 metres from the Scarp Zone targeting surface mineralization and associated geophysical anomalies over approximately one kilometre of strike length (Exhibit A). Drilling consistently encountered strongly altered and mineralized rocks that represent the volcanogenic massive sulphide alteration system ("VMS System") believed to be part of the same geological system that hosts the nearby, past producing Tilt Cove Mine, which mined 8.16 million tonnes of copper ore at grades ranging between 1.25 and 12.0% copper as well as producing 42,425 ounces of gold. The Tilt Cove Mine was active from 1864 to 1917 and again in 1957 to 1967. The extensive VMS System is locally gold-enriched, consistently hosts disseminated, stringer and semi-massive pyrite, chalcopyrite and sphalerite, including an intersection of semi-massive chalcopyrite in hole SZ-20-04.

Highlights of the drilling include intersections of both gold and copper including:

• 4.41% copper over 2.2 metres (64.3 to 66.5 metres) in diamond drill hole SZ-20-04;
• 1.79% copper over 3.0 metres (37.0 to 40.0 metres) in diamond drill hole SZ-20-01; and
• 1.36 grams per tonne ("g/t") gold over 3.0 metres (72.0 to 75.0 metres) and 0.93 g/t gold over 2.7 metres (25.5 to 28.2 metres) in diamond drill hole SZ-20-02.

"Initial drill testing of the Scarp Zone has outlined a kilometre long strike extent of a VMS System including high-grade copper mineralization and elevated levels of gold, proximal to the past-producing Tilt Cove Mine. The results highlight the prospectivity of the area for base metals through the discovery of high-grade copper mineralization in this previously untested area. Our focus remains on the discovery of a high-grade gold deposit similar to the past producing Nugget Pond Mine, but we are pleased with the discovery of base metal mineralization in addition to precious metals, demonstrating the strong potential of the area. Further drilling is anticipated in this area in 2021, targeting other gold prospects both along strike and associated with the VMS alteration system. We continue to execute on the ongoing 10,000 metre Tilt Cove drill program, with drilling completed at West Pond and with two drills currently turning at the Betts Cove and Growler prospects. Results of the drilling will be released upon receipt and evaluation of related assays."

~ Kevin Bullock, President and CEO, Anaconda Mining Inc.

Scarp Zone Drilling

The Scarp Zone is characterized by more than a kilometre of exposed Nugget Pond Horizon coincident with a similar strike length consisting of 107 gold bearing samples over 0.5 g/t gold. The area is also characterized by a strong deformation zone adjacent to the Nugget Pond Horizon which dips shallowly northwest beneath younger Silurian rocks. As part of a larger, ongoing 10,000 metre Drill Program at Tilt Cove, the Scarp Zone was tested with 1,641 metres in 10 holes (SZ-20-01 to 10) over a 1.0 kilometre strike extent, following up on surface gold mineralization indicated by coincident rock grab and float samples as well as IP chargeability anomalies.

Table of Selected Composited Gold Assays

Holes SZ-20-03 to SZ-20-10 did not contain significant composited Gold assays

Table of Selected Composited Copper Grades

Hole SZ-20-03 and holes SZ-20-05 to SZ-20-10 did not contain significant composited Copper grades

This news release has been reviewed and approved by Paul McNeill, P. Geo., VP Exploration with Anaconda Mining Inc., a "Qualified Person", under National Instrument 43-101 Standard for Disclosure for Mineral Projects.

Mineralized intervals referred to in this press release are reported as drill intersections and are apparent widths only. True widths reported in this press release are estimated to be approximately 80-100% of drill intervals.

All samples and the resultant composites referred to in this release were collected using QA/QC protocols including the regular insertion of certified standards and blanks within each sample batch sent for analysis and completion of check assays of select samples. Diamond drill core samples were analyzed for Au at Eastern Analytical Ltd. in Springdale, NL ("Eastern"), using standard fire assay (30 g) pre-concentration and Atomic Absorption finish methods. Copper values were determined by Inductively Coupled Plasma (ICP) analysis along with 33 other elements at Eastern. Eastern is a fully accredited firm within the meaning of NI 43-101 for provision of this service.

Note: "rock grab and float samples" are selected samples and are not necessarily representative of mineralization that may be hosted on the property.

A version of this press release will be available in French on Anaconda's website (www.anacondamining.com) in two to three business days.

ABOUT ANACONDA

Anaconda is a TSX and OTCQX-listed gold mining, development, and exploration company, focused in Atlantic Canada. The company operates mining and milling operations in the prolific Baie Verte Mining District of Newfoundland which includes the fully-permitted Pine Cove Mill, tailings facility and deep-water port, as well as ~15,000 hectares of highly prospective mineral lands including those adjacent to the past producing, high-grade Nugget Pond Mine at its Tilt Cove Gold Project. Anaconda is also developing the Goldboro Gold Project in Nova Scotia, a high-grade resource and the subject of an on-going Feasibility Study.

FORWARD-LOOKING STATEMENTS

This news release contains "forward-looking information" within the meaning of applicable Canadian and United States securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Anaconda to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining such as economic factors as they effect exploration, future commodity prices, changes in foreign exchange and interest rates, actual results of current production, development and exploration activities, government regulation, political or economic developments, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with development activities, employee relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of resources, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in Anaconda's annual information form for the year ended December 31, 2019, available on www.sedar.com. Although Anaconda has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Anaconda does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

FOR ADDITIONAL INFORMATION CONTACT:

Anaconda Mining Inc.
Kevin Bullock
President and CEO
(647) 388-1842
kbullock@anacondamining.com

Reseau ProMarket Inc.
Dany Cenac Robert
Investor Relations
(514) 722-2276 x456
Dany.Cenac-Robert@ReseauProMarket.com

Exhibit A. A map showing the Scarp zone characterized by more than a kilometer of anomalous gold samples greater than 0.5 g/t gold, within a VMS system, as well as the location of drill holes referenced in this press release.

SOURCE: Anaconda Mining Inc.