Century Mining Corporation

Century Mining Corporation

July 29, 2011 16:00 ET

Century Announces Convertible Working Capital Financing

VAL D'OR, QUEBEC--(Marketwire - July 29, 2011) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) today announces that it has entered into a loan agreement to borrow $1 million as a working capital loan which will bear interest at a rate of 17% per year. The loan may be converted after three months from the closing date at the option of the lender into 3,703,704 Century common shares at a conversion price of $0.27 per share, which is the closing price of Century common shares on July 28, 2011. Alternatively, the lender may elect after three months from the closing date to receive payment in gold or cash at an effective gold price representing a 10% discount from the current spot gold price. If neither of these options is exercised by the lender, the loan is to be repaid in cash at the maturity date of twelve months after the closing date. As an inducement to the lender, the Company will issue 250,000 common share purchase warrants to the lender. Each warrant will be exercisable for one common share at $0.30 for 12 months from the date of closing. No finder's fees are to be paid in association with this financing.

The agreement is subject to various conditions including approval by the TSX Venture Exchange. All of the securities which may be issued under this financing are subject to a four-month hold period. The proceeds will be used for working capital purposes.

About Century Mining Corporation

Century Mining Corporation is a Canadian gold producer and holds strategic land positions in Canada, the United States and Peru. The Company's strategy is to grow to its gold production through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.

On behalf of Century Mining Corporation,

"Daniel J. Major"

President & CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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