ANACONDA MINING INC.

Anaconda Mining Inc. updated its current operations, and commented on its redevelopment plan for the Pine Cove milling infrastructure. As per the news release dated July 2, 2009, Anaconda commenced toll milling ore from its Pine Cove gold mine at Crew Gold’s Nugget Pond mill on June 29. To date, more than 40,000 tonnes of ore with a feed grade averaging approximately 3.2 grams gold per tonne has been milled. Gold recoveries have averaged slightly better than 93%, resulting in 4,000 ounces of gold recovered. The Board of Directors of Anaconda has recently approved an upgrade and expansion of the Pine Cove mill infrastructure. The Company has retained leading mineral processing and project management personnel to assist with the re-design, engineering, implementation and commissioning of the Pine Cove mill as a standalone operation with a minimum nominal throughput rate of 700 tpd. The Pine Cove operation is located in Newfoundland, Canada.