Anaconda Updates Progress of Commissioning of Re-developed Pine Cove Mill and
Announces Updated Gold Reserves Estimate

TORONTO, July 29 /CNW/ - Anaconda Mining Inc. ("Anaconda") (TSX: ANX) is pleased to provide the following progress update on the commissioning of the re-developed mill at its Pine Cove Gold Mine located in Baie Verte, Newfoundland. Commissioning of the mill began in late June (as per ANX Press Release dated July 13, 2010) and is progressing according to schedule. The primary ball mill has undergone several batch runs (6 to 12 hours in operation) to date. On July 28, milling operations ran at the design tonnage of 700 tonnes per day for 12 continuous hours. During this period mill power draw was quite low, suggesting ample available capacity for increasing ball load and ore tonnage. The grinding mill will undergo several more 12 to 24 hour batch runs over the next week to allow time for the mill bearings to adjust to their seats. Operator training will be completed next week and Management's expectation is that the commissioning team will pass control to Operations on August 6. Plant optimization will continue through the summer as operations personnel work on maximizing throughput and recovery while reducing operating costs.

    
    Updated Pine Cove Reserve Estimate
    ----------------------------------
    

In conjunction with an overall review of the mining activity to date at the Pine Cove operations (which includes the period from June 2008 to present) Anaconda has undertaken and recently completed a review and update of the Probable Reserves for its open pit producing Pine Cove Gold Project. The reserve update was completed by independent consultants P&E Mining Consultants Inc. of Brampton, Ontario.

The updated reserve was based on an updated resource model that took into account two years of production reconciliation history, current two year trailing average gold prices, and recent processing enhancements to the Pine Cove milling infrastructure.

The updated mineral reserves at Pine Cove are based on a cut-off grade of 0.95 grams gold per tonne. See table below:

Updated Pine Cove Reserve Estimate (June 30, 2010)

    
    -------------------------------------------------------------------------
     Au
    Price   CUT-OFF      PROBABLE RESERVES
                    --------------------------
              Au                Au      Au       WASTE       TOTAL      W/O
    $US/oz   (g/t)    TONNES   (g/t)   (oz)     TONNES      TONNES     RATIO
    -------------------------------------------------------------------------
    $983     0.95   2,635,000  2.07  175,000  11,403,000  14,038,000   4.3:1
    -------------------------------------------------------------------------

    (1) The mineral reserves in this press release were estimated using the
        Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM
        Standards on Mineral Resources and Reserves, Definitions and
        Guidelines prepared by the CIM Standing Committee on Reserve
        Definitions and adopted by CIM Council December 11, 2005.
    (2) The gold price used in this estimate was the June 30, 2010 two year
        trailing average of US$983/oz. A gold process recovery of 88% along
        with an exchange rate of US$0.95 = CDN$1.00.
    (3) Mining costs of CDN$3.25/tonne, processing costs of CDN$22.50 and G&A
        costs of CDN$4.35 based on recent production history were utilized to
        develop the 0.95 g/tonne operating cut-off grade.
    (4) Calculated mining dilution of 15% and production losses of 2.5% were
        incorporated along with 50 degree pit slopes in the design criteria
        for the open pit.
    (5) At a production rate of 350,000 tonne per year, the anticipated mine
        life is 7.5 years.
    (6) Life of mine cash costs are expected to be US$715/oz
    

Qualified Person

The calculation of the updated mineral reserve was supervised by Eugene Puritch, P.Eng, President of P&E Mining Consultants Inc., who by NI 43-101 definition is an independent "Qualified Person". Mr. Puritch has reviewed and approved the contents of this press release.

    
    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, or Greg DiTomaso, Investor Relations, Anaconda Mining Inc., (647) 436-2592, Email: info@anacondamining.com; Or visit Anaconda's website at: www.anacondamining.com


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