Anaconda Mining Inc.
TSX : ANX
FRANKFURT : GJ2

Anaconda Mining Inc.

September 28, 2007 13:41 ET

Anaconda Mining Receives Initial Payment From Penoles

TORONTO, ONTARIO--(Marketwire - Sept. 28, 2007) - Anaconda Mining Inc. ("Anaconda" or "the Company") (TSX:ANX)(FRANKFURT:GJ2), is pleased to announce that it has received the initial payment of US$2,050,000 as per the Definitive Exploration Earn-in Agreement recently signed with Industrias Penoles, S.A. de C.V. ("Penoles"). The payment is in respect of Anaconda's Carmen copper-gold project in the Inca de Oro District, Chile. (See Anaconda press release dated Sept 12, 2007 at www.anacondamining.com.)

Under the terms of the agreement, Penoles has the right to earn a 65% interest in the project over a 48-month period by spending a total of US$22 million. Of this amount, US$12 million will comprise cash payments to Anaconda and Inversiones EM DOS Limitada, ("EM DOS"), a private Chilean company, and US$10 million will comprise direct exploration expenditures on the project.

As per the agreement, Penoles has made the initial US$3 million cash payment, of which US$2,050,000 has been paid to Anaconda and US$950,000 has been paid to EM DOS. As well, per the agreement, Anaconda has issued 400,000 treasury shares to EM DOS.

Penoles has started its year 1 exploration expenditure commitment of US$3 million which includes but is not limited to 12,000 metres of drilling.

In the event that Penoles earns its 65% interest in the Carmen project, Anaconda will hold a 24.5% interest and EM DOS will retain a 10.5% interest.

If Penoles elects to finance the preparation of a bankable feasibility study, then Penoles will increase its project interest to 70% with Anaconda and EM DOS reducing their interests to 21% and 9% respectively.

The Carmen project, located 100 km north of Copiapo, is an advanced stage copper-gold project in Chile's historic Inca de Oro District. (A NI 43-101 Technical Report is available at www.sedar.com and on www.anacondamining.com).

"We are delighted to partner with Penoles on the Carmen project and this initial cash payment further solidifies our working capital position and contributes significantly to funding the annual exploration and operating budgets for the balance of our diversified Chilean project portfolio" said Lew Lawrick, Chairman and CEO of Anaconda.

Penoles is Mexico's largest mining company with integrated operations in smelting and refining non-ferrous metals, and chemical production. Penoles is the world's top producer of refined silver, metallic bismuth and sodium sulfate, as well as the leading Latin American producer of refined gold, lead and zinc.

Anaconda Mining is an emerging gold producer with a portfolio of advanced stage exploration and development projects in Canada and Chile.

Certain statements contained herein constitute "forward-looking statements". These forward-looking statements are based on current expectations. The nature, timing and extent of the exploration programs may materially change from current intentions for a number of reasons. 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 the Company's beliefs in the potential mineralization, are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations as more information regarding the property is gathered or if known and unknown risks or uncertainties affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. The Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.

Contact Information