Century To Sell $66 Million Gold-Based Financing To Fund Lamaque Mine And Improve Company's Financial Position

    BLAINE, WA, Feb. 2 /CNW/ - Century Mining Corporation (CMM: TSX-V)
announced today that it has chosen to sell a structured gold-based financing,
whereby the Company will raise up to US$66 million from institutional
investors and repay the loan over a period of 5 years with physical gold from
production at the Lamaque underground mine in Quebec. The completion of this
financing will also improve the Company's financial position by eliminating a
significant portion of short-term liabilities.
    The Company has chosen Toronto-based Octagon Capital Corporation as lead
agent to arrange this brokered financing. Century and Octagon will work
closely together to place this structured financing with qualified
institutions. This financing is expected to close by the end of February 2009.
    The Company will sell 15,000 units, each unit consisting of 600 common
shares of the company, 1,000 purchase warrants and 5 troy ounces of gold, each
such ounce deliverable by the Company on November 30 in each of 2011, 2012,
2013, 2014 and 2015. Each unit will be priced at $4,400. The combination of
shares and warrants issued through this financing will result in less than an
additional 15% dilution to current shareholders.
    After evaluating several strategic options and consulting with various
investment banking groups over the past two weeks, the Company has chosen this
solution, which it believes is in the best interests of Century's shareholders
and other stakeholders.
    This financing alternative will allow Century to secure financing by
committing just a small percentage of the gold that will be mined at Lamaque
between 2009 and 2019. The gold-based financing will also eliminate the
significant dilution of the Company's shares and overhang normally associated
with convertible debt and other conventional financing methods. The method
chosen by Century also allows the Company to avoid excessive interest rates
associated with high-yield debt facilities.
    The funds raised through this financing will be used for the Lamaque
project development (74%), working capital and pay down of short- and
long-term liabilities (19%), and various fees and costs associated with the
closing of this transaction (7%).
    Margaret Kent, President and CEO of Century commented, "The Board of
Directors and management consulted financial advisors and reviewed numerous
alternatives for the Lamaque project, including mergers, joint ventures,
high-yield debt and other facilities with senior lending institutions. Based
on these consultations, management determined that in a robust gold market and
with a positive outlook for gold, it is in the best interests of Century's
shareholders to minimize dilution with a gold-based financing alternative.
Octagon Capital Corporation reviewed available information from the Fortis
financing due diligence process and has agreed to be lead agent for the

    About Century Mining Corporation

    Century Mining Corporation is a junior gold producer. The Company owns
and is working towards the restart of the Lamaque mine in Québec that
historically has 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. Total gold production for 2006
and 2007 was 70,401 ounces and 63,124 ounces of gold, respectively.

    "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

    Caution Concerning Forward-Looking Information

    This press release contains forward looking statements within the meaning
of the United States Private Securities Litigation Reform Act of 1995 and
forward-looking information within the meaning of applicable Canadian
securities laws. We use words such as "may", "will", "should", "anticipate",
"plan", "expect", "believe", "estimate" and similar terminology to identify
forward-looking statements and forward-looking information. Such statements
and information are 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 statements and information
involve 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 information and accordingly, readers
should not place undue reliance on such statements and information. 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 commodity 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 included in this
Annual Report, in our Annual Information Form and in other filings made by us
with the Securities and Exchange Commission and with Canadian securities
regulatory authorities and available at www.sedar.com.
    While the Company believes that the expectations expressed by such
forward-looking statements and forward-looking information and the
assumptions, estimates, opinions and analysis underlying such expectations are
reasonable, there can be no assurance that they will prove to be correct. In
evaluating forward-looking statements and information, readers should
carefully consider the various factors which could cause actual results or
events to differ materially from those expressed or implied in the
forward-looking statements and forward-looking information.

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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