Anaconda Gold Corp.
TSX VENTURE : ANX
FRANKFURT : GJ2

Anaconda Gold Corp.

February 19, 2007 09:55 ET

Anaconda Files Preliminary Prospectus

TORONTO, ONTARIO--(CCNMatthews - Feb. 19, 2007) -

Not for distribution to United States newswire services or for dissemination in the United States of America.

Anaconda Gold Corp. (TSX VENTURE:ANX) (FRANKFURT:GJ2) ("Anaconda" or the "Company") is pleased to announce that it has filed a preliminary prospectus dated February 14, 2007 for its proposed public offering of common shares (the "Offering") in each of the provinces of Canada, except Quebec.

The Offering is being led by National Bank Financial Inc. and also includes Haywood Securities Inc. (collectively, the "Agents").

The Offering is conditional upon completion of Anaconda's previously announced acquisition (the "Acquisition") of all of the issued and outstanding common shares of Colorado Minerals Inc. ("Colorado Minerals"), a Canadian private corporation which indirectly holds an interest in certain gold and copper assets in Chile.

Colorado's recently announced US$22 million letter of intent with Industrias Penoles, S.A. de C.V. ("Penoles") to jointly explore and develop the Carmen copper-gold project in the Inca de Oro district validates the Company's strategy of exploring and developing advanced stage opportunities in Chile. Anaconda also recently announced that it has completed a US$2.5 million facility with Auramet Trading, LLC to complete the Pine Cove gold mine in Newfoundland, which is expected to begin production in late 2007.

Anaconda intends to use the net proceeds from the Offering to continue its focus on gold and copper-gold properties in Canada and Chile. Specifically, the net proceeds will be used for operating activities on the Damoti Lake gold project in the Northwest Territories and the Vicuna copper-gold project in Chile, other acquisitions and exploration activity and working capital and general corporate expenses.

In consideration for their services in connection with the Offering, Anaconda has agreed to pay the Agents a cash fee equal to 6.0% of the gross proceeds and to grant to the Agents non-transferable share purchase warrants entitling them to purchase common shares of the Company in an amount equal to 6.0% of the number of common shares sold at an exercise price equal to the issue price at any time until the first anniversary of the closing of the Offering. The Company has also granted to the Agents an over-allotment option exercisable, in whole or in part, for a period of 30 days after closing of the Offering to acquire up to an additional 15% of the number of common shares sold pursuant to the Offering, to cover over-allotments, if any, and for market stabilization purposes.

About Anaconda

Anaconda has agreed to complete the Acquisition immediately prior to completion of the Offering. The Acquisition has been approved by the directors and shareholders of the Company.

Upon completion of the Acquisition, Anaconda will have changed its name to "Anaconda Mining Inc." and will be a mineral resource company concentrated on acquiring and exploring base metal and precious metal properties in Newfoundland, the Northwest Territories, Ontario and Chile with a focus on gold and copper-gold deposits.

Anaconda's strategic focus will be on advanced stage gold and base metal projects with demonstrated potential to be brought to commercial production. Anaconda will have interests in a diverse portfolio of advanced stage exploration and near-term production gold and copper assets in Canada and Chile including:

- the Pine Cove gold mine project in Newfoundland, which is fully financed and expected to be ready for production in late 2007;

- the Damoti Lake gold project in the Northwest Territories, which is partially developed by a decline ramp and includes 11,516 acres of exploration lands;

- the Carmen copper-gold project located near Inca de Oro, Chile. Penoles has entered into a letter of intent with Colorado Minerals to spend up to US$22 million on the exploration and development of Carmen; and

- the Vicuna copper-gold project in Chile, which is believed to cover the western extension of Tenke Mining Corporation's ("Tenke") Filo del Sol copper-gold project in Argentina which trends across the Argentine-Chilean border.

Forward-Looking Statements

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," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "targeting," "suggests," "potential" "interpretation" and similar expressions. These forward-looking statements, including statements regarding the Acquisition, the Offering and the proposed use of proceeds, are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations as more information regarding the properties is gathered or if known and unknown risks or uncertainties affect our business, or if our 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.

This press release is not an offer of the securities described above (the "Securities") for sale in the United States or to "U.S. Persons", as defined in the rules and regulations under the U.S. Securities Act of 1933. The Securities offered have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States or to "U.S. Persons" absent registration or applicable exemption from the registration requirements of that statute.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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