Century Mining Corporation

Century Mining Corporation

March 02, 2005 20:04 ET

Century Mining Announces up to C$3.85 Million Financings


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CENTURY MINING CORPORATION

TSX VENTURE SYMBOL: CMM

MARCH 2, 2005 - 20:04 ET

Century Mining Announces up to C$3.85 Million
Financings

BLAINE, WASHINGTON--(CCNMatthews - March 2, 2005) - Century Mining
Corporation (TSX VENTURE:CMM) announces today it has arranged up to
C$3.85 million in financings as follows: Working Capital and Cost
Overrun Convertible Debenture Facilities for C$2.85 million, and up to a
C$1.0 million Flow-Through Share Offering.

As a result of the success of the reverse circulation (RC) drilling
program at the Sigma Mine, the Company intends to continue the RC
drilling program to the end of the second quarter of this year, at which
time it expects to upgrade the open pit resources into reserves. This
drilling, as well as exploration on the Sigma - Lamaque properties that
host an additional resource of approximately three million ounces of
gold, will be funded by the proceeds of the Flow-Through Share Offering.
Flow-Through Shares will be issued at C$0.40 per share.

In addition to the Flow-Through Share Offering, the Company intends to
issue additional Convertible Debentures arranged by Endeavour Mining
Capital Corp. These Convertible Debentures would be issued in two series
to fund working capital requirements, as follows:

- A Working Capital Debenture for up to C$2.25 million to fund working
capital requirements during the pre-production start-up of the Sigma
Mine.

- A Cost Overrun Debenture in the amount of C$600,000 which will be
drawn at the Company's option to fund any cost overruns during the
start-up of the Sigma Mine.

Interest on the Debentures at a rate of 10% per annum will be payable
quarterly in arrears at the Company's option in cash or in shares.
Debenture Holders will be able to convert any or all outstanding amounts
to shares of Century at C$0.44 per share at any time. Century may force
conversion of both these new debentures and Century's existing
debentures if Century's shares trade at or above C$1.00 for 30
consecutive days.

The Company will pay an annual fee equal to 6% of the then outstanding
balance of the Working Capital Debenture, and will pay an annual fee
equal to 12% of the then outstanding balance of the Cost Overrun
Debenture. The fees are payable in cash or shares at the Company's
option. Century will issue five million Share Purchase Warrants to the
Debenture Holders, with each warrant exercisable for one common share of
Century at a price of C$0.44 for a period of two years.

Unless specifically referred to in this press release, all other terms
and conditions of the Debentures, including security, are the same as
the Company's existing debentures issued in September 2004 and maturing
on December 31, 2006, and as announced by the Company in press releases
on July 19, 2004 and September 20, 2004. Each Debenture Holder will be
restricted from increasing the number of shares it holds in Century
above 19.9%.

Closing of the Convertible Debenture transactions will be in the form of
an amendment to the indenture for the existing 2006 10% Convertible
Debentures. Closing on all financings is expected to take place in the
week of March 7.

These financings are subject to approval by the TSX Venture Exchange and
conditions precedent customary of transactions of this nature, including
the completion of all documentation.

Margaret Kent, President and CEO, states: "We are making excellent
progress at the Sigma Mine and have arranged these financings to ensure
that the Company has the necessary working capital for a successful
start-up."

On behalf of the Board of Directors,

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

This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Exchange Act of 1933 and as
amended in Section 27E of the 1934 Act.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Century Mining Corporation
    Graham Eacott
    Vice President, Investor Relations
    (360) 332-4653
    (360) 332-4652 (FAX)
    geacott@centurymining.com
    or
    Century Mining Corporation
    Michael Wood
    Communications Director
    (360) 332-4653
    (360) 332-4652 (FAX)
    mwood@centurymining.com
    www.centurymining.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.