Anaconda Increases Holdings In New Island; Encourages Shareholders to
Participate in Only Offer that Can be Completed

TORONTO, Aug. 20 /CNW/ - Anaconda Mining Inc. ("Anaconda") (TSX: ANX) announces that it has extended its offer ("Offer") to purchase all of the outstanding common shares ("New Island Shares") of New Island Resources Inc. ("New Island") until 5:00 p.m. (Toronto time) on Tuesday, August 31, 2010.

This is the final extension of the Offer and Anaconda does not intend to extend it any further. Anaconda is in the process of filing a Notice of Extension for this final extension of the Offer and mailing it to the shareholders of New Island.

An additional 2,663,082 New Island Shares have been validly deposited to the Offer, which Anaconda has taken up and accepted for payment. Together with the New Island Shares that it has previously acquired pursuant to the Offer, Anaconda, New Island's largest shareholder, beneficially owns approximately 41.01% of the issued and outstanding New Island Shares. Payment will be made to New Island shareholders for their newly deposited shares as soon as possible and in any event on or before August 25, 2010 in accordance with the terms of the Offer.

The Offer is for all of the issued and outstanding New Island Shares on the basis of 0.42 of a common share of Anaconda for each New Island Share.

Shareholders of New Island should be aware that various intermediaries impose an earlier deadline in order to tender their New Island Shares to the Offer. Anaconda encourages each shareholder to check with their intermediary to determine when the Offer must be accepted to meet the new expiry time 5:00 p.m. (Toronto time) on Tuesday, August 31, 2010.

Anaconda notes that it continues to hold sufficient New Island Shares to defeat any special resolution of shareholders of New Island to approve a proposed transaction with Mountain Lake Resources Inc. or any other transaction that may be proposed.

As previously announced, Anaconda has requisitioned a meeting of shareholders of New Island for the purpose of electing a new Board of Directors of New Island as soon as possible. Anaconda has also requested two Board seats immediately and forwarded to New Island its full slate of Directors which it expects will be put forward at the shareholders meeting New Island has called for September 30, 2010.

Investors may obtain a free copy of the Offer documents filed by Anaconda with Canadian securities regulators at www.sedar.com. In addition, you may request these documents free of charge, from Anaconda's information agent, Kingsdale Shareholder Services Inc. within North America at 1-888-518-1558 (outside North America at 1-416-867-2272).

DISCLAIMER

This press release does not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any of the securities of New Island. Such an offer can only be made pursuant to an offer to purchase and accompanying an offering circular filed with the securities regulatory authorities in Canada.

ABOUT ANACONDA

Anaconda is a Toronto, Canada-based mining development and exploration company focused on advancing its principal assets, the Pine Cove Gold Mine in Canada and its portfolio of Chilean iron ore assets. Anaconda is committed to bringing the Pine Cove Gold Mine into full Commercial Production, as well as advancing the exploration and near-term production opportunities of its Chilean iron ore assets. Anaconda continues to evaluate strategies to 'unlock' value attributable to its Chilean iron portfolio for the benefit of its shareholders.

FORWARD-LOOKING INFORMATION

This news release contains certain "forward-looking information" under applicable Canadian securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking information. Forward-looking information is often characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Assumptions upon which such forward-looking information is based include Anaconda's ability to acquire 100% of the New Island common shares and the benefits that may be obtained as a result of the business combination of the two companies. Many of these assumptions are based on factors and events that are not within the control of Anaconda and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking information include changes in market conditions, variations in ore grade or recovery rates, risks relating to international operations, fluctuating prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, the business of New Island and Anaconda not being integrated successfully or such integration proving more difficult, time consuming or costly than expected as well as those risk factors discussed or referred to in the Annual Information Form for Anaconda filed with securities regulatory authorities and available at www.sedar.com. Although Anaconda has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Anaconda undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.

%SEDAR: 00007625E

SOURCE Anaconda Mining Inc.

For further information: For further information: Lew Lawrick, President and CEO, Anaconda Mining Inc., (647) 478-5307, Email: llawrick@anacondamining.com; Greg DiTomaso, Investor Relations, Anaconda Mining Inc., (647) 436-2592, Email: info@anacondamining.com; Or visit Anaconda's website: www.anacondamining.com; For a copy of the early warning report, please contact Greg DiTomaso at (647) 436-2592


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890