Company News – Thu 3 May, 2018

Anaconda Mining Inc. (“Anaconda” or the “Company”) – (TSX:ANX) is pleased to report its financial and operating results for the three months ended March 31, 2018 (“Q1 2018”). The condensed interim consolidated financial statements and management discussion & analysis documents can be found at www.sedar.com and the Company’s website, www.anacondamining.com. All dollar amounts are in Canadian dollars unless otherwise noted.

In 2017, the Company changed its fiscal year-end to December 31, from its previous fiscal year end of May 31. Consequently, Anaconda has now reverted to a customary quarterly reporting calendar based on a December 31 financial year-end, with fiscal quarters ending on the last day in March, June, September, and December each year. For comparative purposes, the results for the three months ended March 31, 2018, have been compared to the three months ended February 28, 2017.

First Quarter 2018 Highlights

• Anaconda sold 4,526 ounces of gold in Q1 2018, a 25.8% increase over the three months ended February 28, 2017, generating gold revenue of $7.6 million at an average realized gold price per ounce sold* of C$1,677.
• Strong revenue and lower costs enabled the Point Rousse Project to generate EBITDA* of $3.3 millionfor the first quarter of 2018, compared with $0.8 million for the three months ended February 28, 2017.
• On a consolidated basis, EBITDA* for the three months ended March 31, 2018 was $2.4 million, an increase of $1.8 million over the comparative period.
• Operating cash costs per ounce sold* at the Point Rousse Project in Q1 2018 was $900 (US$712), well below 2018 annual guidance of around $1,100, and a 32.6% improvement over the comparative fiscal quarter.
• All-in sustaining cash costs per ounce sold*, including corporate administration and sustaining capital expenditures, was $1,377 (US$1,090) for Q1 2018, a 23.5% improvement over the three months ended February 28, 2017.
• The Company invested $1.5 million in its exploration and development projects, including $1.0 millionon the Goldboro Gold Project in Nova Scotia.
• Significant development progress was achieved at Stog’er Tight, achieving 159,927 tonnes of waste development, the dewatering of Fox Pond, and the completion of a settling pond and pit dewatering system.
• The Company has commenced the conversion of the Pine Cove Pit into a fully permitted tailings storage facility, which will provide 15 years of capacity based on throughput rates of 1,350 tonnes per day.
• Net income for the three months ended March 31, 2018 was $149,218, or $0.00 per share, compared to a net loss of $940,032, or $0.02 per share, for the three months ended February 28, 2017.
• As at March 31, 2018, the Company had cash of $2.8 million, net working capital* of $6.6 million, and additional available liquidity of $1,000,000 from an undrawn revolving line of credit facility.

*Refer to Non-IFRS Measures section below. A full reconciliation of Non-IFRS Measures can be found in the Management Discussion and Analysis for the three months ended March 31, 2018.

“Anaconda continues to demonstrate its ability to operate in a safe, responsible, and profitable manner, driving down unit operating costs and generating strong operating cash flows from its Point Rousse Project in the first quarter of 2018, while making significant progress developing the Stog’er Tight Mine. Our established and robust physical infrastructure and experienced workforce, together with the consistent performance at Point Rousse, form the platform for a well-defined growth strategy in Atlantic Canada. Leveraging the Pine Cove Mill and the fully-permitted Pine Cove tailings facility, Anaconda has the ability to accelerate the development of gold projects such as the Hammerdown Mine owned by Maritime Resources Corp, for which Anaconda has made a take-over offer, which will drive long-term shareholder value for both Maritime and Anaconda.”

~Dustin Angelo, President and CEO, Anaconda Mining Inc.

Consolidated Results Summary

First Quarter 2018 Review

Operational Overview

The Pine Cove Mill processing facility remains a cornerstone asset of the Company. Availability during the quarter of 93.4% was lower compared to the 98.6% availability during the final four months of 2017 due to a planned preventative maintenance activities. During Q1 2018, the mill processed 109,219 tonnes of ore at a throughput rate of 1,300 tonnes per day, consistent with the throughput rate maintained during the final months of 2017. Average grade during Q1 2018 was 1.44 g/t, an 11.6% increase over the final four months of 2017. The mill achieved an average recovery rate of 85.2%, consistent with previous periods, resulting in gold production of 4,293 ounces.

The later part of December 2017 saw mining activity focused on development activity at Stog’er Tight and the completion of mining in the main Pine Cove Pit, which continued into the first quarter of 2018. In Q1 2018, the nearby Fox Pond dewatering was completed prior to mining at Stog’er Tight, the operation established a settling pond and dewatering system for the Stog’er Tight …read more