Anvil Divests its Interest in the Dikulushi Tenements in the DRC and Updates
Construction Progress at Kinsevere Stage II

    
                                                                TSX, ASX: AVM
                                      Common shares outstanding 150.4 million
    All amounts are expressed in US dollars, unless otherwise stated.
    

MONTREAL, Feb. 26 /CNW Telbec/ - Anvil Mining Limited (TSX, ASX: AVM), ("Anvil" or the "Company") today announced that it has reached agreement with Mawson West Limited ("Mawson West") on the terms and conditions for the sale of the Company's 90% interest in Anvil Mining Congo SARL ("AMC"). AMC is the holder of the Dikulushi Mining Convention and the Dikulushi copper-silver mine in the Democratic Republic of Congo ("DRC") which was placed on care and maintenance in the fourth quarter of 2008.

As Anvil is now focused on significantly larger copper projects in the DRC, with the Kinsevere Stage II project (60,000 tonnes per year of cathode copper) expected to begin commissioning during the first quarter of 2011, the Company has decided to divest itself of the Dikulushi project.

The Company plans to carry out further drilling at Kinsevere during 2010 and is investigating expansion opportunities with attractive synergies for the Kinsevere operation with the possibility also of extending the processing life of the project. In addition, the Company has yet to determine its evaluation and development plans for the Mutoshi project in the Kolwezi region of the DRC, where there are early indications of a large, though lower grade copper resource.

The terms of the agreement with Mawson West

Under the terms of the agreement with Mawson West, the shares in AMC held by Anvil will be transferred to Mawson West, in consideration for which Anvil will receive 83,070,000 shares in Mawson West, representing approximately 28% of the issued and outstanding shares in Mawson West, on an undiluted basis.

The agreement also provides that, so long as Anvil holds at least 15% of the issued and outstanding shares in Mawson West, Anvil will have top-up rights to ensure that it may participate in any future share issues or placements so that it is able to maintain its percentage shareholding in Mawson West and the right to appoint one director to the Mawson West Board of Directors.

The trust in favour of the communities near or most affected by the Dikulushi project that holds 10% of AMC, is being restructured as a foundation based in the DRC, in order to have greater Congolese involvement in the social program implementation process. Anvil will continue to work with authorities in the DRC to complete this restructuring following the disposition of AMC.

The transaction with Mawson West is subject to Mawson West shareholder approval and is expected to be completed during March 2010, at which time Mawson West will assume responsibility for the area covered by the Dikulushi Mining Convention, which includes the Dikulushi mine and the Kapulo Project Area, which is located approximately 130 km north east of the Dikulushi mine.

The Kapulo Project Area

During 2006, Anvil entered into a farm-in agreement with Mawson West for the Kapulo Project Area. Mawson West now holds a 65% interest and is manager of the joint venture.

To date, Mawson West has completed a total of 14,608 metres of diamond drilling and 3,323 metres of reverse circulation drilling at the Shaba and Safari North deposits on the Kapulo Project Area. Because this evaluation work is continuing, no JORC or NI 43-101 compliant resource statement has yet been completed.

About Mawson West

Mawson West Ltd is an Australian based copper and gold explorer, with a focus on the Kapulo high-grade copper project in the DRC and neighbouring areas across the border in Zambia. The company also has gold projects in Western Australia. It is a public unlisted company with approximately 212 million shares currently issued and outstanding. Based upon the share price at which Mawson West recently completed a $9.0 million private placement, its market capitalisation is approximately $31.8 million.

Kinsevere Stage II

The Company continues to make good progress with the construction and fabrication works for the Kinsevere Stage II solvent extraction-electrowinning ("SX-EW") development that is expected to produce 60,000 tonnes per year of LME Grade A copper cathode.

Key areas of progress during the past four weeks have included:

    
    - Ausenco has almost completed its mobilisation, with 20 Ausenco
      personnel now at site.

    - Mobilisation of South African construction subcontractor Group 5 is at
      an advanced stage with over 180 Group 5 personnel now at site.

    - The full Owner's Representative team is expected to be on site by
      March 1, 2010.

    - Plant and equipment including prefabricated steel work, some of which
      was previously on the critical path, continues to be transported
      through to site.

    - Accommodation camp refurbishment is now 95% complete and well in
      advance of the contractor personnel build-up which is expected to peak
      at approximately 800 in May 2010.
    

The project benefits from having the engineering and design work now virtually completed, having had both Ausenco and Group 5 working previously on the project, having a large amount of equipment and materials already on site and having many work faces available, all of which provides a great deal of flexibility in terms of the construction program.

In addition, work has commenced on a scoping study of options to heap-leach the low-grade material (0.3-0.7%Cu) which will need to be mined from the currently designed open pit shells, in order to provide additional feed to the SX-EW plant.

Finally, as a point of clarification, the economic analysis of the Kinsevere Stage II development contained in a news release of January 27, 2010 that showed a Net Present Value ("NPV") at 95% equity of $683 million after tax, an Internal Rate of Return ("IRR") of 79% and a payback period of less than 2.5 years after final loan drawdown, was based on the remaining capital cost of approximately $200 million. The total capital cost of Kinsevere Stage II is expected to be $400 million, $200 million of which is sunk cost, and applying this total capital cost generates a corresponding NPV of $473 million; an IRR of 36% and a payback period of 3.6 years.

The shares of Anvil Mining Limited are listed for trading on the Toronto Stock Exchange (as Common Shares) and the Australian Securities Exchange (as CDIs) under the symbol AVM. For further information on Anvil, please refer to the Anvil website at www.anvilmining.com.

Caution Regarding Forward Looking Information: This news release contains "forward-looking information" that is based on assumptions and judgements of management regarding future events and results. Such forward-looking information includes, but is not limited to statements regarding the anticipated sale of AMC to Mawson West, plans for drilling and expansion of the Kinsevere project, the recommencement of construction and fabrication works for the Stage 11 SX-EW development at Kinsevere, including anticipated timing of personnel and equipment delivery to the Kinsevere site, the anticipated production rate of the SX-EW plant, the anticipated date for commissioning of the Kinsevere Stage II project, the availability of immediately available feed to the SX-EW plant and the capital costs, Net Present Value and Internal Rate of Return of Kinsevere Stage II and capital cost payback period after final drawdown under loan facilities for Kinsevere Stage II. The purpose of forward-looking information is to provide the reader with information about management's expectations and plans. Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors, many of which are not in the control of Anvil and which may cause the actual results, performance or achievements of Anvil and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, the actual market price of copper, the actual results of future exploration, mining, processing and development activities, changes in project parameters as plans continue to be evaluated, the possibility of cost overruns, changes in the plans and operations of companies in which Anvil has an interest, as well as those factors disclosed in the Company's filed documents, including under the heading "Risk Factors" in the Company's most recently filed AIF, which is available under the Company's profile on SEDAR at www.sedar.com. Assumptions upon which forward looking information relating to the sale of AMC is based include that Anvil and Mawson West will be able to satisfy the conditions in the agreement regarding the sale of AMC, that all third party, regulatory and governmental approvals to the transaction will be obtained and that all other conditions to completion of the transaction will be satisfied or waived. Many of these assumptions are based on factors and events that are not within the control of Anvil or Mawson West and there is no assurance they will prove to be correct. No assurance can be given that the sale of the Company's interest in AMC will be completed with Mawson West or to another party. Mawson West is a public unlisted company and there is presently no market for its securities. There is no guarantee that Anvil's interest in Mawson West will have a significant or positive impact on the actual results, performance or achievements of Anvil and/or its subsidiaries, or that Anvil will be able to divest its interest in Mawson West if and when desired. Although Anvil has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.

%SEDAR: 00020549E

SOURCE Anvil Mining Limited

For further information: For further information: Craig Munro, Senior Vice President Corporate & CFO, +61 (8) 9481 4700, craigm@anvilmining.com (Perth); Robert La Vallière, Vice President Corporate Affairs, (Office) (514) 448 6664, (Cell) (514) 944 9036, robertl@anvilmining.com (Montréal); www.anvilmining.com

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