Anvil Reaches Agreement with Gécamines and the DRC Government for the Kinsevere and the Dikulushi Properties



    TSX, ASX: AVM
    Common shares outstanding 71.2 million
    All amounts are expressed in US dollars, unless otherwise stated.

    MONTREAL, Jan. 21 /CNW Telbec/ - Anvil Mining Limited (TSX, ASX: AVM),
("Anvil" or the "Company"), today announced that it had reached agreement with
La Générale des Carrières et des Mines ("Gécamines") and the Government of the
Democratic Republic of Congo ("DRC") on the terms of its Kinsevere "Contrat
d'Amodiation" (Lease Agreement) and the Dikulushi Mining Convention. The
Company is in possession of an amendment agreement for the Kinsevere Lease
Agreement, which has been signed by Anvil and Gécamines. In addition, the
Company has been formally notified by Gécamines and the DRC Government that
the Dikulushi Mining Convention (the "Convention") remains unchanged.
    Bill Turner, President and Chief Executive Officer of Anvil, commented,
"We are satisfied with the outcome and believe that the amended agreement for
Kinsevere and terms therein provide a solid base from which to further develop
this project and to move forward with our partner Gécamines. Importantly,
finalization of the agreement enables us to proceed with funding for the Stage
II expansion of our flagship project at Kinsevere; a significant, high-grade
copper resource with potential to increase in size."
    "Paul Fortin, Managing Director of Gécamines commented, "We are pleased
to have been able to reach a satisfactory outcome with Anvil with respect to
the Mining Review and this should now clear the way for Anvil to proceed with
its Stage II development of Kinsevere. Anvil has been one of the pioneers in
the DRC Copperbelt and we are keen to see our projects develop to their full
potential with the help of this company."

    Kinsevere Lease Agreement

    The Kinsevere mine is located in the Katanga Province in the south-east
of the DRC, approximately 30 kilometres north of the provincial capital,
Lubumbashi. The mineral rights to Kinsevere are held by Gécamines. AMCK Mining
SPRL ("AMCK"), a special purpose joint venture company between Anvil (95%) and
Mining Company Katanga SPRL (5%), a local, privately owned Congolese company,
have a Lease Agreement with Gécamines to mine and process ore from the
Kinsevere mine until 2024 followed by an automatic 15 year extension. The
Company's 95% interest in the Kinsevere Lease Agreement has not been amended.

    The key details of the amended Lease Agreement are set out below in
    Table 1.

    Table 1. Key amendments to the Kinsevere Lease Agreement

    
    -------------------------------------------------------------------------
    Term                Original Agreement           Amended Agreement
    -------------------------------------------------------------------------
    Rent payments       Rent paid to Gécamines       Rent paid to Gécamines
                        on a sliding scale, from     based on 2.5% of gross
                        a floor price of $35 per     turnover.
                        tonne of copper at a LME
                        copper price of $2,200 per
                        tonne (or $1.00/lb copper)
                        to a ceiling price of
                        $70 per tonne of copper at
                        an LME copper price of
                        $4,000 per tonne (or
                        $1.80/lb copper) on each
                        tonne of commercially
                        viable copper metal
                        extracted at Kinsevere.
    -------------------------------------------------------------------------
    Cash payments       A "pas de porte" (entry      An additional "pas de
                        premium) payment of          porte" (entry premium)
                        $5 million of which          payment of $15 million
                        $1 million was paid in       is to be made, of which
                        December 2005 and            $10 million is to be
                        $4 million was paid in       paid within six months
                        January 2007.                of the amended agreement
                                                     coming into effect and
                                                     the balance within
                                                     12 months.(1)
    -------------------------------------------------------------------------
    Advisory committee  Nil.                         An Advisory Committee,
                                                     comprised of three
                                                     members from Gécamines
                                                     and three from AMCK,
                                                     will be responsible for
                                                     following the progress
                                                     of the Kinsevere mine.
    -------------------------------------------------------------------------
    AMCK management     Nil.                         Gécamines to have one
                                                     member in the management
                                                     of AMCK to fill such
                                                     position as may be
                                                     determined by AMCK.
    -------------------------------------------------------------------------
    Social development  Nil.                         AMCK will continue the
                                                     implementation of
                                                     economic and social
                                                     development programs for
                                                     the benefit of the
                                                     communities surrounding
                                                     the Kinsevere mine.
    -------------------------------------------------------------------------
    Employment          Nil.                         AMCK has agreed to
                                                     provide former Gécamines
                                                     employees priority
                                                     opportunities for
                                                     employment provided they
                                                     possess equivalent
                                                     qualifications and
                                                     capabilities.
    -------------------------------------------------------------------------
    Provision of        Nil.                         AMCK has agreed to
    services and                                     provide Gécamines with
    materials                                        a preferential
                                                     opportunity to supply
                                                     AMCK with services
                                                     and materials on
                                                     commercially competitive
                                                     terms.
    -------------------------------------------------------------------------

    (1). In the event that Anvil arranges financing of $125 million or more,
         the timing of payments will be revised such that $10 million shall
         be paid within 14 days of the receipt of funds of such financing and
         $5 million paid within six months of the date of payment of the
         $10 million.
    

    Dikulushi Mining Convention

    The Company has concluded discussions with Gécamines and the DRC
Government regarding the Convention and the terms and conditions of the
Convention have not changed. Under the Convention, which was signed by the DRC
Minister of Mines, Minister of Finance and Minister of Plan & National
Reconstruction on January 31, 1998, and ratified by Presidential Decree No. 60
on February 27, 1998, Anvil, through its 90% owned subsidiary Anvil Mining
Congo SARL is guaranteed sole and exclusive rights for exploitation of the
area governed by the Convention, for a minimum period of 20 years from the
date of the issue of the tenure. The remaining 10% of the equity in the
Dikulushi mine is held in trust by the Company for the economic, social and
infrastructure development of the Dikulushi region.
    Since commencement of operations in 2004, the Company has invested
approximately $18 million in various social programs and infrastructure
developments in the Dikulushi region.
    While the terms and conditions of the Convention have remained unchanged,
Anvil has agreed to revise the trust structure under which the surrounding
communities' interests in the Dikulushi mine are held, in order to provide for
more direct involvement of DRC authorities and the local communities, in the
implementation of social and economic development programs.
    Bill Turner further commented, "Dikulushi was the Company's first mine in
the DRC. Negotiation of the Dikulushi Mining Convention and development of the
Dikulushi mine were undertaken during an especially difficult period in the
DRC's history and we are pleased that the DRC Government has upheld the terms
and conditions of the Convention."

    Mutoshi Joint Venture Agreement

    Discussions with Gécamines to complete an amended Mutoshi Joint Venture
Agreement continue to progress, using as a basis, the commercial terms agreed
with Gécamines and the DRC Government in October 2008. The Company is
confident that a satisfactory agreement can be reached with its joint venture
partner Gécamines.

    Anvil Mining Limited is an unhedged copper and silver producer whose
shares are listed for trading on the Toronto Stock Exchange (as common shares)
and the Australian Securities Exchange (as CDIs) under the symbol AVM.

    Caution Regarding Forward Looking Statements: The forward-looking
statements made in this news release are based on management's assumptions and
judgments regarding future events and results. Such forward-looking
statements, including but not limited to those with respect to the Company's
plans for expansion of the Kinsevere copper mine involve known and unknown
risks, uncertainties and other factors which may cause the Company's actual
results, performance or achievements to be materially different from any
anticipated future results, performance or achievements expressed or implied
by such forward-looking statements. Such factors include, among others, the
actual market prices of copper, changes in project parameters as plans
continue to be evaluated, and the possibility of cost overruns, as well as
those factors disclosed in the Company's filed documents. There can be no
assurance that the Stage II expansion of the Kinsevere copper mine will
proceed as planned or be successfully completed within expected time limits
and budgets or that, when completed, the expanded facility will operate as
anticipated. In addition, no assurance can be given as to the outcome of any
discussions and negotiations with Gécamines and the DRC Government regarding
the Company's Mutoshi property or that Anvil's security of tenure and its
ability to secure additional financing in the future may not be adversely
affected so as to have a material adverse effect on its business, operating
results and financial position.
    %SEDAR: 00020549E




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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