Century Mining reports second quarter net income of $1.6 million and operating profit of $4.8 million



    - Company records fourth consecutive quarterly net income -

    Blaine, WA, Aug. 30 /CNW/ - Century Mining Corporation (CMM: TSX-V) is
pleased to announce its financial and operating results for the second quarter
ended June 30, 2007.

    (This news release contains forward looking information that is subject
    to risk factors and assumptions as set out in our Cautionary Statement on
    Forward-Looking information located at the end of this news release).

    Conference call

    Management will host a conference call on Tuesday, September 4 at 11:00
a.m. Pacific time (2:00 p.m. Eastern time) to discuss 2007 second quarter
results and future developments at its operations in Québec and Peru. Mining
analysts, investors and the media are invited to phone 1-888-469-1059, or
1-773-756-0828 if outside Canada and the U.S.A., followed by the pass code
4580854 approximately 5 minutes before the start of management's presentation.
The presentation will be followed by a question and answer period. A replay of
the conference call can be heard through Tuesday, September 11 by dialing
1-888-566-0613, or from outside North America 1-203-369-3075.

    
    Second Quarter Highlights

    -  Net income totaled $1.6 million or $0.01 per share (diluted), compared
       to a net loss of $1.2 million in the second quarter of 2006.
    -  Operating profit from mining operations was $4.8 million.
    -  Total gold production was 20,014 ounces.
    -  The Company sold a total of 20,740 ounces of gold in the second
       quarter, at an average selling price of US$658.
    -  Combined cash costs for the second quarter were US$384 per ounce.
    -  Revenue increased to $14.7 million, up 23.4% from last year's second
       quarter.
    

    Summary of second quarter operating results

    Revenue in the second quarter ended June 30, 2007, was $14.7 million, up
23.4% from $11.9 million in the same period a year ago. Increased revenue was
mainly due to favorable trends in the price of gold, which the company
believes will continue for the foreseeable future. The Company intends to
leverage favorable trends in metals prices to continually enhance
profitability.

    
    The table below summarizes operating results and financial position in the
last five quarters.

    -------------------------------------------------------------------------
    Canadian
    dollars        Q2-2007     Q1-2007     Q4-2006     Q3-2006     Q2-2006
    -------------------------------------------------------------------------
    Results
    -------------------------------------------------------------------------
    Mine
     revenues     14,656,374  13,124,871  11,059,159  11,045,950  11,878,882
    -------------------------------------------------------------------------
    Operating
     profit from
     mining
     operations    4,770,312   5,379,146   5,080,956   3,671,599   2,911,936
    -------------------------------------------------------------------------
    Net income
     (loss)        1,625,641   1,979,815   2,554,626   1,107,485  (1,198,135)
    -------------------------------------------------------------------------
    Net income
     (loss) per
     share              0.01        0.02        0.02        0.01       (0.01)
    -------------------------------------------------------------------------
    Financial
     position
    -------------------------------------------------------------------------
    Cash and cash
     equivalents   8,231,775     276,111     802,132   3,436,073   8,481,360
    -------------------------------------------------------------------------
    Total
     assets      120,026,675 103,119,278  98,783,040  94,407,128  88,166,375
    -------------------------------------------------------------------------
    Long-term
     debt         12,059,576  12,081,246  11,921,972  11,921,972  11,921,972
    -------------------------------------------------------------------------
    Shareholders'
     equity       79,319,206  64,549,544  60,129,560  56,937,514  55,747,845
    -------------------------------------------------------------------------
    Shares
     issued and
     outstanding 137,825,915 123,147,019 117,859,689 115,762,884 115,574,009
    -------------------------------------------------------------------------
    

    In the second quarter, the Company recorded an operating profit from
mining operations of $4.8 million, an increase from last year's second quarter
total of $2.9 million. The Company also achieved a net profit of $1.6 million,
or $0.01 per share for the period, the fourth consecutive quarter of net
earnings. This compares to a net loss of $1.2 million, or $0.01 per share, in
the comparable period a year ago.

    The following table presents production results for the last five
quarters.

    
               -----------------------------------------------
                           Realized      Ounces
                         Gold Price        Gold   Cash Cost
               Period       (US$/oz)   Produced     (US$/oz)
               -----------------------------------------------
               Q2-07            658      20,014         384
               -----------------------------------------------
               Q1-07            656      16,749         386
               -----------------------------------------------
               Q4-06            621      16,494         330(*)
               -----------------------------------------------
               Q3-06            581      16,952         422
               -----------------------------------------------
               Q2-06            588      18,012         414
               -----------------------------------------------

          (*)  2006 fourth quarter operating costs reflect a change
               in the average life-of-mine stripping ratio
               resulting in additional capitalized deferred
               stripping and are not an indication of the cash cost
               of operations on an ongoing basis.


    The following table presents 2007 second quarter results by operation.

             --------------------------------------------------
                                    Sigma Mine   San Juan Mine
             --------------------------------------------------
             Tonnes ore milled         360,230          19,030
             --------------------------------------------------
             Head grade (g/t)             1.47            5.56
             --------------------------------------------------
             Recovery (%)                 93.4            87.7
             --------------------------------------------------
             Recovered gold (oz.)       17,132           2,882
             --------------------------------------------------
             Cash costs (US$/oz.)          454             305
             --------------------------------------------------
    

    Century produced a total of 20,014 ounces during the period at a cash
cost of US$384 per ounce. The Company sold 20,740 ounces of gold in the second
quarter at an average selling price of $658 per ounce.
    Cash costs at the Sigma Mine, as expressed in U.S. Dollars, increased in
part due to the recent strengthening of the Canadian Dollar against the U.S.
Dollar.
    In June of 2007 the Company completed the acquisition of Mina Rosario de
Belen, which began operations in February 2007 as an open pit - heap leach
mine. During the second quarter, the Company took over operations at the mine,
which has not yet reached commercial production.
    In the second quarter of 2007 corporate administration expenses of
$508,825 (2006 - $1,137,757) reflected the higher level of head office costs
charged to Tamerlane Ventures, Inc., a company with common officers and
directors, as the Company and Tamerlane reached an agreement to evenly share
corporate administration costs in the future. This change was partially offset
by greater activity associated with operating the Sigma Mine and the San Juan
Mine, including salaries and benefits at higher staffing levels, as well as
increased travel and accommodation expenses.
    In the second quarter of 2007, before net changes to non-cash working
capital balances, cash flows provided by operating activities were $2,115,217
(2006 - $79,659). After the net change to non-cash working capital balances,
cash flows provided by operating activities in the second quarter of 2007 were
$429,503 (2006 - cash flows used of $9,745,540).

    Revised Production Forecast for 2007

    The Company announced today that it has revised its 2007 full-year
production forecast. Century now expects to 2007 total production to be
80,000 - 90,000 ounces of gold, compared to the previous forecast of 100,000
gold ounces.
    This forecast has been reduced from prior estimates because of the
Company's challenges in hiring sufficient numbers of miners for the Lamaque
underground operation and the Company's difficulty in predicting ounces and
grade for future production from the Sigma open pit geologic model. Problems
with the geologic model have been recurring since the opening of the Sigma
open pit operation, and it is the Company's opinion, after extensive work with
outside consultants, that these problems will continue.
    In light of increasing costs and falling production levels of the Sigma
open pit operation, the Company is reviewing its strategic direction for the
mine. This review is expected to be completed during the third quarter of
2007, and may result in material changes to the mine's operating plans,
including an acceleration of the transition to underground mining.
    The Company expects, as it transitions to complete reopening of the Sigma
and Lamaque underground mines, that it will be able to more accurately predict
production on an annual basis. Century's work to date with the reopening of
the Lamaque underground mine and planning for the reopening of the Sigma
underground mine have produced better-than-expected results with respect to
ore grade, ore predictability and ground conditions. As it finalizes plans to
ramp up the Sigma and Lamaque Underground Mines, the Company believes that
combined production of approximately 100,000 ounces of gold per year will be
reached when full production capacity is achieved.

    Peruvian Operations

    With the startup of commercial production at the San Juan Mine in 2007,
this operation now provides positive cash flow, which is used as capital for
further expansion. Also in Peru, a mining contractor has been hired to
transition the Rosario de Belen Mine from the startup phase to commercial
production. The Company has completed drilling at San Juan, having drilled
approximately 11,000 meters, and is now in the review/data compilation phase.
Century will continue the exploration program at San Juan on the surrounding
deposits and plans to provide an update in a subsequent disclosure.
    The Company has also commenced drilling at the recently acquired
Huancacancha property in Peru. By continuing to add to the Company's land
position in Peru, and increasing production at current operations, Century is
positioning itself to fully benefit from favorable metals prices and become a
formidable mining company in South America.

    Shahuindo Project

    The Company has purchased the companies that own and control the
Shahuindo property with the intent of exploiting this gold asset as quickly as
possible. It is well known that there has been litigation surrounding this
property since 2003, and the Company is committed to the vigorous pursuit of
the Shahuindo litigation. The recent favorable ruling of the Peruvian court
(see August 15, 2007 press release), while not a final determination of the
litigation, represents a major step forward for the Company toward achievement
of its goal of development of mining operations at this prime resource
property.

    Major Subsequent Events

    In August, 2007 the Company acquired an option to purchase the
Huancacancha gold property in Peru. The Huancacancha prospect is an advanced
stage exploration property comprising 1,900 hectares in the Department of
Ancash in north-central Peru, 45 km south of Huaraz City and 55 km south of
Barrick's Pierina mine. The purchase price is US$24,500,000 and is being
financed by the sellers over a 5 year period. An initial installment of
$215,000 was paid by the Company at the closing. The remaining $24,285,000
will be paid in yearly amounts of $2,285,000, $3 million, $4 million,
$5 million and $10 million, each amount payable in 12 monthly installments. At
any time the Company may terminate the agreement and return the concessions to
the vendor without penalty to the Company and without any subsequent payment
obligations to the vendor.
    Margaret Kent, President & CEO commenting on Century's second quarter
results and future prospects said: "In the second quarter, we were not able to
ramp up production at the Lamaque Underground Mine as quickly as we originally
planned. This is mainly due to the severe shortage of underground mining
personnel. Despite such challenges, we are encouraged by the results to date
of our aggressive recruiting campaign, centered in Eastern Canada. We will
continue to increase staff levels in order to reach our stated target of
400-500 tonnes of ore per day from the Lamaque Underground Mine by year end.
Furthermore, we are currently finalizing plans to phase out open pit
operations ahead of schedule, and focus the Company's resources on underground
mining operations, where we expect to produce 100,000 ounces of gold per year
from the two underground operations when they reach full production capacity.
Regarding the lowered production forecast for 2007, we now expect to produce
between 80,000 and 90,000 ounces of gold. We have used a relatively wide range
in our forecast because actual production totals will depend largely on how
quickly underground personnel levels can be increased, and because of the
unpredictable nature of grades at the Sigma Open Pit. Although we are
disappointed in the total production outlook, we maintain our firm belief in
policies that place top priority on cash flow, operating profit and net
income. With all of the aforementioned initiatives and favorable metals
prices, we are very excited about Century's growth prospects in 2007 and
beyond."

    About Century Mining Corporation

    Century Mining Corporation is an emerging mid-tier gold producer that is
aggressively acquiring producing mines and exploration properties in Peru. The
Company owns and produces gold at the Sigma and Lamaque mines in Québec that
historically have produced over 9.4 million ounces of gold. In Peru, Century
wholly-owned subsidiaries own an 82.6% interest in the San Juan Mine where the
Company accounts for 100% of gold production. Century subsidiaries have also
recently acquired Rosario de Belen and Huancacancha where it accounts for 100%
of both gold and silver production. Century's growth strategy is to acquire
gold producing assets in South America that will substantially reduce the
Company's consolidated total cash cost of production and where there is
exceptional exploration potential to expand production at these mines.


    "Margaret M. Kent"

    Chairman, President & CEO


    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of the contents of this press
    release.

    Caution Concerning Forward-Looking Information

    This press release contains forward-looking information within the
meaning of applicable securities laws. We use words such as "may", "will",
"should", "anticipate", "plan", "expect", "believe", "estimate" and similar
terminology to identify forward-looking information. It is based on
assumptions, estimates, opinions and analysis made by management in light of
its experience, current conditions and its expectations of future developments
as well as other factors which it believes to be reasonable and relevant.
Forward-looking information involves known and unknown risks, uncertainties
and other factors that may cause our actual results to differ materially from
those expressed or implied in the forward-looking statements and accordingly,
readers should not place undue reliance on those statements. Risks and
uncertainties that may cause actual results to vary include but are not
limited to the speculative nature of mineral exploration and development,
including the uncertainty of reserve and resource estimates; operational and
technical difficulties; the availability to the Company of suitable financing
alternatives; fluctuations in gold and other resource prices; changes to and
compliance with applicable laws and regulations, including environmental laws
and obtaining requisite permits; political, economic and other risks arising
from our South American activities; fluctuations in foreign exchange rates; as
well as other risks and uncertainties which are more fully described in our
annual and quarterly Management's Discussion and Analysis and in other filings
made by us with Canadian securities regulatory authorities and available at
www.sedar.com.





For further information:

For further information: Brent Jones, Manager of Investor Relations,
E-mail: bjones@centurymining.com, Phone: (877) 284-6535 or (360) 332-4653,
Fax: (360) 332-4652, Website: www.centurymining.com

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CENTURY MINING CORPORATION

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