TORONTO, ON – April 22, 2021 - Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX: ANX) (OTCQX:
ANXGF) is today announcing production results and certain financial information from the three months ended March 31, 2021 (“Q1 2021”), as well as providing an operational update with regards to production based on Q1 2021 results.
All dollar amounts are in Canadian Dollars. The Company expects to file its first quarter financial statements and management discussion and analysis by May 6, 2021.

First Quarter 2021 Highlights
• Anaconda sold 3,119 ounces of gold in Q1 2021, generating metal revenue of $7.4 million at an average realized gold price1 of $2,358 (US$1,862) per ounce sold.
• Point Rousse produced 2,540 ounces of gold in Q1 2021, a 49% decrease compared to Q1 2020, driven mainly by lower mined grade from certain benches of the Argyle Mine and lower mill throughput.
• Mine operations moved 59,157 tonnes of ore during the first quarter from Argyle, lower than the previous year but ahead of plan for 2021, at a strip ratio of 9.3 waste tonnes to ore tonnes. However, the mined grade was 35% lower than the mine plan, due to mining challenges in shallowly dipping areas of the Argyle Deposit.
• Point Rousse has implemented increased production drill sampling to provide better grade definition on each bench, increased ore delineation drilling where drill density is lower, and adopted preferential mining methods for shallowly dipping areas of the Argyle Deposit.
• Based on the 162,714 total ore tonnes mined from Argyle to the end of Q1 2021, Anaconda has also revised its topcut parameter downward to better reflect the actual results from mining and the resulting mill reconciliation.
• As a result of the lower grade mined in Q1 2021 and the top-cut adjustment, the Company is revising its 2021 guidance downward to 16,000 to 17,000 ounces of gold produced. Gold production will be weighted towards the second half of 2021 (and into 2022) as accelerated waste development in Q2 2021 provides increased access to ore.
• The operating cash costs for the remainder of the year (Q2 through Q4) are expected to be between $1,450 and $1,500 (US$1,125 - US$1,175). Operating cash costs per ounce1 for the full year are now expected to be between $1,625 and $1,675 per ounce of gold sold (US$1,225 - US$1,275) (based on an exchange rate of 0.775).
• The Pine Cove Mill processed 92,533 tonnes during Q1 2021 and achieved a recovery rate of 84.9%, a decrease in throughput of 18% compared to Q1 2020, the result of unplanned maintenance relating to the ball mill and the jaw crusher. Throughput is now running at normal levels.
• Ongoing drilling at the Stog’er Tight Deposit continues to provide encouraging results, both from an infill and expansionary perspective. Based on these results, the Company is updating its internal pit designs and resource estimates in anticipation of a potential development scenario at Stog’er Tight.
• As of March 31, 2021, the Company had a cash balance of $14.5 million and preliminary working capital1 of $11.2 million.
1 Refer to Non-IFRS Measures Section below.
“Anaconda had a challenging first quarter at its Point Rousse operation, whereby better than plan ore tonnage was significantly offset by lower than plan mined grade, resulting in gold production of 2,540 ounces of gold and 3,119 ounces of gold sold. The operation in particular experienced mining challenges in shallowly dipping areas of the Argyle Deposit. We have been working hard to update our understanding of the deposit, including an active program of ore delineation and grade control drilling to enable a more preferential mining approach with limited mining dilution. As a result of our Q1 2021 results and our updated understanding of the Argyle Deposit, we are revising our 2021 production guidance to 16,000 to 17,000 ounces of gold. We are confident with our plan going forward and we continue to review near-term opportunities at Point Rousse, including throughput and cost savings, which may provide further upside.”

~ Kevin Bullock, President and CEO, Anaconda Mining Inc.
2021 Guidance and Operating Plan Anaconda has revised its 2021 guidance downward to 16,000 to 17,000 ounces of gold, from 18,000 and 19,000 ounces of gold in 2021. Mill feed will continue to be predominantly from mining at Argyle, with accelerated development in Q2 2021 allowing for greater access to ore in the second half of the year. Throughput will be maintained with supplemental ore feed from Pine Cove and marginal stockpiles, although the Company continues to investigate opportunities to defer marginal ore feed. Operating cash costs per ounce1 for the full year are now expected to be between $1,625 and $1,675 per ounce of gold sold (US$1,225 - US$1,275 at an approximate exchange rate of 0.775), up from $1,425 and $1,475 per ounce of gold sold, reflecting the impact of operating cash costs per ounce sold in Q1 2021 and the expected grade profile from Argyle over the remainder of the year. The operating cash costs for the remainder of the year (Q2 through Q4) are expected to be between $1,450 and $1,500 (US$1,125 - US$1,175 at an approximate exchange rate of 0.775).

The Company still anticipates grade to increase towards the end of 2021 at Argyle which, along with a decrease in the stripping ratio, will lead to a marked decrease in operating cash costs per ounce sold.
The Company now expects to incur approximately $5,500,000 of sustaining capital expenditures for the mine and mill operations in 2021, a decrease from $6,600,000, as accelerated development in Q2 2021 results in a lower allocation of mining costs to capital in the second half of the year. Looking further ahead at Point Rousse, the Company continues to see positive results from infill and expansion drilling at the Stog’er Tight extension and has advanced baseline permitting activities, given its strong potential to extend the life of mine of the Point Rousse operation.

First Quarter Operating Statistics
Three months ended March 31, 2021 Three months ended March 31, 2020
Mine Statistics
Ore production (tonnes) 59,157 103,222
Waste production (tonnes) 551,706 561,763
Total material moved (tonnes) 610,863 664,985
Waste: Ore ratio 9.3 5.4
Mill Statistics
Availability (%) 82.7 97.8
Dry tonnes processed 92,533 113,136
Tonnes per day 1,243 1,271
Grade (grams per tonne) 1.01 1.57
Recovery (%) 84.9 87.4
Gold Ounces Produced 2,540 4,997
Gold Ounces Sold 3,119 5,132

Operations Overview for the Three Months Ended March 31, 2021
Anaconda sold 3,119 ounces of gold during the first quarter of 2021, generating gold revenue of $7.4 million at an average realized gold price1 of $2,358 (US$1,862) per ounce sold. Gold production of 2,540 ounces was 49% lower than
Q1 2020, predominantly driven by lower mined grade from the initial benches at Argyle and lower mill throughput. The Company expects to recognize a write-down of certain portions of its metal inventory as of March 31, 2021 to net realizable value in its quarterly financial statements.
During Q1 2021, the mine operations moved 59,157 tonnes of ore which was higher than plan for the quarter, however a decrease of 43% compared to the comparable period of 2020 when Point Rousse was mining in the higher-tonnage Pine Cove Pit. The strip ratio of 9.3 waste tonnes to ore tonnes was lower than planned for the first quarter, due to a combination of earlier development in Q4 2020 and an expected acceleration of mine development in Q2 2021, when the strip ratio will increase to provide increased access to ore in Q3 and Q4 of 2021. However, the impact of a 35% lower mine grade significantly impacted production, particularly in flat lying areas of the Argyle Deposit.
To improve production moving forward, the mine operations have doubled production drill sampling to provide better
grade definition on each bench and increased delineation drilling where drill density is lower. This will enable an optimized preferential mining approach, especially for shallower dipping areas of the Argyle Deposit, to minimize mining dilution. Point Rousse has also revised its top-cut parameter downward to better reflect the actual results from mining and the resulting mill reconciliation to provide a better prediction of grade in the mine plan.
The Pine Cove Mill processed 92,533 tonnes during Q1 2021, a decrease of 18% compared to the first quarter of 2020, due to unplanned maintenance relating to the ball mill and the jaw crusher. Operating risk mitigation plans were executed successfully and while COVID-19 did impact the delivery and timing of certain equipment, throughput has returned to normal levels. The average grade during Q1 2021 of 1.01 g/t reflected the mining challenges noted above, which had an attendant impact on the average recovery rate of 84.9%, reflecting a decrease of 3% compared to the first quarter of 2020.

1 Refer to Non-IFRS Measures Section below.

Qualified Person
Kevin Bullock, P. Eng., President and CEO, Anaconda Mining Inc., is a “qualified person” as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this press release.