Century Mining Corporation
TSX VENTURE : CMM

Century Mining Corporation

November 05, 2007 17:01 ET

Century Converts Sigma-Lamaque to Full Underground Operation

Company Closes Open Pit

BLAINE, WASHINGTON--(Marketwire - Nov. 5, 2007) - Century Mining Corporation (TSX VENTURE:CMM) Century Mining Corporation announced today that it has discontinued open pit mining operations at its Sigma gold mine at Val d'Or, Quebec as of Monday, November 5, 2007, and will ramp up production from the Lamaque underground mine, which the Company reactivated in April 2007. "The closure of the Sigma open pit was a difficult decision, but deteriorating ore grades in the open pit and increasing costs of operation because of rising fuel prices made the surface mine uneconomic," said Century's President and CEO, Margaret Kent.

"We are extremely enthusiastic about the prospects for the Lamaque mine, where we have had significant success since reopening this historic mining operation," said Kent. "These underground mines have produced over 9.5 million ounces from the 1930's until the 1990's." The contiguous underground properties of both Sigma and Lamaque have been combined and are referred to jointly by the Company as the Lamaque mine.

The Lamaque mine is currently producing 350 to 400 tonnes of ore per day at an average grade of approximately 5.5 grams per tonne. The Company has applied for permits to increase production to over 1,800 tonnes of ore per day. Century expects Lamaque to yield positive cash flows by the end of the first quarter of 2008. The Company also expects that Lamaque will produce upwards of 100,000 ounces of gold per year at a cash cost of approximately $350 per ounce by the end of the first quarter of 2009. As a result of the shutdown of the open pit, the Company's revised production guidance for the full year 2007 is 65,000 ounces.

As a result of the closure of the Sigma open pit, the Company will temporarily reduce its staffing levels at Val d'Or this week by 191 employees, leaving employment of 110 at the site. This temporary workforce reduction, including both salaried and hourly employees, is necessary until these employees can be transitioned over to the Lamaque underground mine. As the Lamaque mine operations are expanded over the next several months, the employment levels will be increased to approximately 350 to 400 employees when the mine achieves full production of 1,800 tonnes of ore per day.

Century has also undertaken a major data compilation and mapping effort for the Lamaque property to demonstrate resources on the property and guide future expansion of mining operations. Use of recently digitized historic information and the application of geological models has resulted in the discovery of several new ore zones at the Lamaque property. Century is currently delineating and quantifying these ore zones in order to prepare and file an NI 43-101 report expanding the reportable reserves and resources at the mine by the end of the year.

On September 27, 2007 the Company announced a non-brokered private placement of up to US$20 million. The Company has chosen to close out that private placement after raising approximately US$7.3 million because of available financing alternatives including a proposed leasing line and adjustments to the Company's senior notes.

To fund the Lamaque underground development and underground exploration and resource definition programs, plus other projects, Century is announcing plans to raise C$6-8 million through a common equity and flow-through offering. The terms of the offering are as follows:

Offering of up to 6.5 million units. Each unit will consist of:

- one flow-through common share

- one common share

- one full share purchase warrant, exercisable for two years from the date of issue at an exercise price of C$0.80

Proceeds of the offering will be used to fund the Lamaque exploration and resource delineation efforts, expansion of the Lamaque mine, and for working capital purposes, as follows:

- C$3-4 million flow-through Lamaque exploration and resource expansion; and

- C$2-3 million Lamaque underground mine development and working capital.

A finder's fee of 6% in cash and 6% in broker warrants will be paid.

About Century Mining Corporation

Century Mining Corporation is an emerging mid-tier gold producer that is aggressively acquiring producing mines and exploration properties in Peru. The Company owns and produces gold at Lamaque mine in Quebec that historically has produced over 9.5 million ounces of gold. In Peru, Century wholly-owned subsidiaries own an 82.6% interest in the San Juan Mine where the Company accounts for 100% of gold production. Century subsidiaries have also recently acquired Rosario de Belen where it accounts for 100% of both gold and silver production. Century's growth strategy is to acquire gold producing assets in South America that will substantially reduce the Company's consolidated total cash cost of production and where there is exceptional exploration potential to expand production at these mines.

On behalf of the Board of Directors,

Margaret M. Kent, Chairman, President and C.E.O.

Caution Concerning Forward-Looking Information

This press release contains forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws. We use words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology to identify forward-looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability to the Company of suitable financing alternatives; fluctuations in gold and other commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks arising from our South American activities; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis included in this Annual Report , in our Annual Information Form and in other filings made by us with the Securities and Exchange Commission and with Canadian securities regulatory authorities and available at www.sedar.com.

While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward-looking statements and forward-looking information.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this press release.

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