Century Mining Corporation

Century Mining Corporation

January 16, 2007 09:30 ET

Century Mining Announces 2007 Management Guidance

BLAINE, WASHINGTON--(CCNMatthews - Jan. 16, 2007) - Century Mining Corporation (TSX VENTURE:CMM) is pleased to announce its management guidance for 2007. Margaret Kent, President & CEO commented, "We are very excited about Century's initiatives in Canada and Peru, and the opportunities in 2007 to maintain growth, and enhance shareholder value." The following is a review of 2006 and an outline of management guidance for 2007.

2006 highlights

Financial position
- Stronger balance sheet.
- Conversion of all convertible debentures.
- Buyback of Sigma operating royalty.

- First quarterly net income in Century's 3-year history.
- Increased production ounces and reduced cash costs compared to 2005.
- Development of Lamaque Underground Mine for 2007 production start.
- Commencement of drilling/exploration program in Peru.

Expansion and growth
- Acquired San Juan Gold Mines S.A.A.
- Established Century Mining Peru S.A.C.

In 2006, management continued its emphasis on improving the Company's balance sheet and overall financial performance. Through conversion of all convertible debentures, the buyback of the operating royalty for production at the Sigma Mine and various other initiatives, Century recorded its first net income in the third quarter of 2006.

The Company also succeeded in improving operations at the Sigma Mine, which has recorded positive cash flow on a quarterly basis since commencing commercial production in May 2005. Looking to the future, Century acquired San Juan Gold Mines in Peru in May 2006, which will result in a further increase in gold production, while lowering overall cash costs.

To meet Century's needs as an emerging mid-tier gold producer, the Company appointed a Chief Financial Officer in 2006, in addition to retaining a highly-regarded media relations firm, and hiring geologists and other key personnel for the company's Peruvian operations.

Initiatives for 2007

- Continue to enhance profitability by increasing production ounces at
current operations in Canada and Peru, while reducing cash costs.
- Begin mining at the Lamaque Underground Mine.
- Complete waste removal initiative at the Sigma pit.
- Rehabilitate San Juan mill to stated capacity (700 t/d).
- Complete drilling program and NI 43-101 report for the San Juan Mine.
- Commence subsequent drilling/exploration programs on the San Juan
- Continue establishing a strong foundation for future growth.

In 2007, Century will focus management resources into the company's primary operations in Canada and Peru.

At the Sigma Mine, new trucks, drills and other equipment upgrades carried out during 2006 will allow the Company to increase gold production and reduce total cash costs per ounce, while further improving mine planning, ore grade control, and overall mining efficiency. The Company also plans to begin operations at the Lamaque Underground Mine in the second quarter of 2007, which will increase head grade to the mill and further reduce cash costs per ounce. Capital expenditures for the Sigma-Lamaque Complex in 2007 are expected to total C$3.0 million, with a further $8.0 million estimated for deferred stripping and mine development. Regarding exploration in Canada in 2007, the Company has budgeted C$0.5 million, which will focus mainly on the Lamaque Underground Mine.

Century's strategic expansion in Peru is consistent with management's policy of achieving growth through the acquisition of producing mines on attractive terms. In 2007, initiatives in Peru will focus on completing a comprehensive drilling and exploration program with the objective of filing an NI 43-101 technical report by April of 2007. The Company will continue the exploration program throughout the year to expand on NI 43-101 compliant reserves and resources. Century has budgeted C$1.9 million for this program. Concurrently, Century will make necessary upgrades to the mill at the San Juan Mine in order to restore it to a capacity of 700 tons per day, producing at an annual run rate of 35,000 ounces of gold by December 2007. In order to accomplish this goal, the Company expects capital expenditures for the San Juan Mine to total C$2.0 million in 2007.

Production results/forecast

Century has revised its forecast for production in 2007 and 2008, as shown in the table below. Production in 2007 and 2008 is now expected to total 100,000 ounces and 140,000 ounces, respectively (previous forecast: 2007 - 163,000 oz., 2008 - 243,000 oz.). The previous forecasts were based mainly on the assumption that Century would acquire a 38% interest in Compania Minera Poderosa S.A. (CMPSA); however, as announced on November 22, 2006, the CMPSA selling group breached a binding agreement with Century by selling their shares to a third party. Other factors affecting the revised forecasts include equipment and personnel availability in Peru, an increased amount of time and resources required to rehabilitate the San Juan mill, and permitting delays related to the Lamaque Underground Mine. Century's management considers all of these factors to be ordinary in the course of operating gold mines, and does not consider such factors as significant risks to the Company's long-term growth prospects.

Gold (oz/yr) Cash cost (US$/oz)
2005 45,158 415
2006E 77,000 400
2007E 100,000 370
2008E 140,000 360

Further commenting on the Company's plans for 2007, Margaret Kent said, "Century has come a long way since commercial production began in May 2005, and we, as a Company, view the challenges over the next year as an opportunity to strengthen the foundation for long-term growth in Canada and South America."

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 the Sigma and Lamaque mines in Québec that historically have produced over 9.4 million ounces of gold. In Peru this year Century acquired control of the San Juan Mine where the Company accounts for 100% of gold 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.

"Margaret M. Kent", Chairman, President & C.E.O.

Caution Concerning Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable securities laws. We use words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology to identify forward-looking information. It is 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 information involves 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 accordingly, readers should not place undue reliance on those statements. 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 resource 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 and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com.

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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