Anaconda Mining Reports Positive Phase I Open Pit Feasibility Study for the Goldboro Gold Project

2021-12-16

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Pre-tax Net Present Value (5%) of $484M with a pre-tax IRR of 31.2%

After-tax Net Present Value (5%) of $328M with an after-tax IRR of 25.5%

TORONTO, ON / ACCESSWIRE / December 16, 2021 /Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX)(OTCQX:ANXGF) is pleased to report the results of the Phase I Open Pit Feasibility Study ("Feasibility Study" or the "Study") prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") for its 100% owned Goldboro Gold Project ("Goldboro", or the "Project") in Nova Scotia, Canada. All currency is presented in Canadian dollars (C$) and referenced as "C$" or "$", unless otherwise stated. Mineral Resources, Mineral Reserves, and the financial analysis for the Project were completed using base case assumptions of US$1,600 per ounce of gold and an exchange rate of US$1.00 to C$1.25.

Anaconda Mining welcomes investors and analysts to join President & CEO Kevin Bullock for a webinar hosted by Adelaide Capital today, December 16, 2021, at 2PM EST, to discuss the results of the Feasibility Study. Please see registration details below.

Highlights of the Feasibility Study

Total gold recovered of over 1.10 million ounces over an approximately 11-year open pit life of mine ("LOM") with average gold production of 100,000 ounces per annum and an average diluted grade of 2.26 grams per tonne ("g/t") gold; Pre-tax Net Present Value at a 5% discount rate ("NPV 5%") of $484 million and a pre-tax Internal Rate of Return ("IRR") of 31.2%, with a projected pre-tax payback of 2.7 years; After-tax NPV 5% of $328 million and an after-tax IRR of 25.5%, projected after-tax payback of 2.9 years; Maiden Open Pit Probable Mineral Reserves of 1,150,200 ounces of gold (15.8 Mt at 2.26 g/t gold); Open pit Measured and Indicated Mineral Resources of 1,422,000 ounces (15.7 Mt at 2.82 g/t gold) and Underground Measured and Indicated Mineral resources of 1,159,000 ounces (5.9 Mt at 6.09 g/t gold); Open Pit Inferred Mineral Resources of 66,000 (0.98 Mt at 2.11 g/t gold) and Underground Inferred Mineral Resources of 418,000 ounces (2.2 Mt at 5.89 g/t gold); Initial capital cost ("Capex") of $271 million and LOM sustaining capital of $63.1 million; Life-of-Mine Operating Cash Costs of $966 (US$773) per ounce_1_and All-In Sustaining Costs ("AISC") of $1,062 (US$849) per ounce_1_; Projected creation of approximately 345 direct full-time jobs during construction and 215 direct full-time jobs during operations, while generating in excess of $226 million in federal and provincial tax payments; Mill capacity of 4,000 tonnes per day ("tpd") based on a combined gravity and leaching circuit, yielding an average gold recovery of 95.8%; and At a gold price of $2,200 (~US$1,760), Goldboro could generate cumulative after-tax net cash flows of approximately $684 million, an after-tax NPV 5% of over $442 million and an after-tax IRR of 31.7%.

With Strong Opportunity for Further Value Creation

Ongoing infill drilling has the potential to reduce the strip ratio and positively impact NPV and IRR by upgrading Inferred Mineral Resources coincident with the current open pit designs based on Measured and Indicated Mineral Resources only; Potential for Mineral Resource expansion, particularly towards the west with further exploration of a 1.5 kilometre long area along strike of the existing Goldboro Deposit ("Deposit") towards the past producing gold mine at Dolliver Mountain; The Goldboro Deposit has been drill tested to only 500 metres and remains open at depth. A future study will consider upgrading and expanding potentially mineable underground Mineral Resources as part of the longer-term mine development plan.

1Refer to Non-IFRS Financial Measures below.

"Anaconda is extremely pleased to report its Phase 1 Open Pit Feasibility Study for the Goldboro Gold Project, encompassing the surface mining portion of the longer-term operating plan, which demonstrates almost 11 years of open pit mine life at an average annual gold production of 100,000 ounces. The Study demonstrates robust economics at a C$2,000 gold price (US$1,600) with an after-tax NPV 5% of $328 million, an after-tax IRR of 25.5% with a payback of 2.9 years, all in a top tier Canadian jurisdiction. The Project is expected to have significant social and economic impacts on the Municipality of the District of Guysborough with direct employment expected to reach 215 persons during operations and 345 during construction. The Project will contribute directly to Provincial and National economic growth by potentially generating over $226 million in taxes.

The Feasibility Study is a critical first step of our long-term development plan, which in the future will consider further technical studies to incorporate the high-grade underground mineral resource into the operation. Importantly, there continues to be tremendous upside potential at the Goldboro Deposit, which remains open in all directions. We believe near-term infill drill programs could further positively impact the value of the Project and the Company will be exploring along strike to the west of the Deposit towards the past producing Dolliver Mountain gold mine. We believe Goldboro has potential to be a long-life gold mine which can create significant value for our shareholders, Project rightsholders and stakeholders, including the Mi'kmaq of Nova Scotia and the Municipality of the District of Guysborough."

~ Kevin Bullock, President and CEO, Anaconda Mining Inc.

Investor and Analyst Webinar

Anaconda Mining welcomes investors and analysts to join President & CEO Kevin Bullock for a webinar today, December 16, 2021, at 2 PM EST, to discuss the results of the Feasibility Study. Please register at: https://us02web.zoom.us/webinar/register/WN_fbeTlLjcTLmfJ6CDMGZcfQ.The webinar will also be live-streamed on the Adelaide Capital YouTube channel here: https://www.youtube.com/channel/UC7Jpt_DWjF1qSCzfKlpLMWw. A replay will be made available afterwards.

Feasibility Study Overview and Next Steps

The results of the Phase 1 Feasibility Study for the Goldboro Gold Project demonstrate strong economics with a mine life of approximately 11 years and average annual gold production of 100,000 ounces. The open pit design in the Study contemplates two distinct open pits, a West Pit and East Pit, separated by Gold Brook Lake (see Figure 1below). The Study outlines a conventional open pit mining operation and a 4,000 tpd processing facility based on a combined gravity and leaching circuit using carbon-in-pulp technology, achieving strong metallurgical recoveries of 95.8%. The Study represents Phase I of a longer-term mine development plan whereby, once open pit mining has commenced, the Company will consider further opportunities with respect to the underground Mineral Resource. This may include infill and expansion drilling, possibly from drifts off benches within the open pits, allowing for more effective and less expensive diamond drilling. Pending positive results of that work, the Company would then initiate a study to consider incorporating an underground mining operation to the Project.

The Company continues to work on an Environmental Assessment Registration Document ("EARD"), which is expected to be filed in Q2 2022. Throughout 2022, the Company will continue work to support Environmental Assessment and permitting activities, including Mi'kmaq engagement and public consultation, additional surface and groundwater modelling, detailed engineering, and ongoing baseline studies to support an Industrial Approval.

Importantly, the Goldboro Deposit continues to be open in all directions and the Company believes there is further potential to expand the Goldboro Deposit along strike and at depth. The Company is planning a 50 line-kilometre Induced Polarization geophysical survey over the area west and along strike of the Goldboro Deposit for approximately 1.5 kilometres up to the past-producing Dolliver Mountain gold mine, which will guide future exploration drilling.

The Goldboro Gold Project Feasibility Study

The Feasibility Study was completed by Nordmin Engineering Ltd. ("Nordmin") as Lead Mining and Geological Consultant. Ausenco Engineering Canada Inc. ("Ausenco") acted as Metallurgical and Processing Consultant, Knight Piésold Ltd. ("Knight Piésold") as Tailings Consultant, GHD Ltd. ("GHD") as Site Water Management and Environmental Consultant, Lorax Environmental Services Limited ("Lorax") as Geochemistry Consultant, and McCallum Environmental Ltd. ("McCallum") as Consultation and Permitting Consultant.

Table 1: Summary of Key Estimated Results and Assumptions in the Feasibility Study

| Production Data | Values | Units | | Life of Mine | 10.9 | Years | | Processing Rate | 4,000 / 1.46 | tpd / Mtpa | | Recovered Gold | 1.1 | Moz | | Average Gold Recovery | 95.8 | % | | Pre-production Tonnes Mined | 4.1 | Mt | | Total Material Mined (including pre-production) | 142.6 | Mt | | Total Ore Tonnes Mined | 15.8 | Mt | | Overall Strip Ratio | 8 | waste: ore | | Total Tonnes Milled | 15.8 | Mt | | Average Annual Gold Production | 100 | koz | | Average Mill Feed Grade | 2.26 | g/t gold |

| Capital Costs | Values | Units | | Initial Capital, Direct Cost Estimate | 193.9 | C$M | | Initial Capital, Indirect Costs and Contingency | 77.1 | C$M | | Total Initial Capital Costs | 271 | C$M | | LOM Sustaining Capital Costs, including Indirect Costs and Contingency | 63.1 | C$M | | Total Reclamation and Other Costs334.0pt334.0pt | 50.3 | C$M | | Total LOM Capital Costs | 384.5 | C$M | | NPV to Total Initial Capital Costs | 1.2 | |

| Operating Costs | Values | Units | | Open Pit Mining | 4.99 | C$/t mined | | Processing | 13.45 | C$/t milled | | Refining and Transport | 4.23 | C$/oz | | Water Management and Treatment | 1.16 | C$/t milled | | Site Support Costs | 8.7 | C$/t milled | | Total Operating Cost | 67.05 | C$/t milled | | Average Operating Cash Cost per Ounce 1 | 966 (US$773) | C$/oz | | Average All-In Sustaining Cost per Ounce 1 | 1,062 (US$849) | C$/oz |

| Financial Analysis | Values | Units | | Gold Price Assumption | $1,600 | US$/oz | | Exchange Rate | 01:01.3 | US$:C$ | | Gold Price Assumption | $2,000 | C$/oz | | Pre-Tax Unlevered Free Cash Flow | 755 | C$M | | Pre-Tax NPV 5% | 484 | C$M | | Pre-Tax IRR | 31.2 | % | | Pre-Tax Payback | 2.7 | years | | After-Tax Unlevered Free Cash Flow | 529 | C$M | | After-Tax NPV 5% | 328 | C$M | | After-Tax IRR | 25.5 | % | | After-Tax Payback | 2.9 | years | | LOM Direct Income and Provincial Mining Taxes | 226 | C$M |

Notes:

1. Refer to "Non-IFRS Financial Measures" below.

Mineral Resource Estimate

The Mineral Resource Estimate presented in Table 2was prepared by Independent Qualified Person Glen Kuntz, P. Geo., of Nordmin. The Mineral Resource Estimate is based on validated results of 681 surface and underground drill holes for a total of 121,540 metres of diamond drilling completed between 1984 and the effective date of November 15, 2021, including 55,803 metres conducted by Anaconda.

Table 2: Mineral Resource Estimate for the Goldboro Gold Project - Effective Date November 15, 2021

(g/t gold) | Gold Troy Ounces | | Open Pit | 0.45 | Measured | 7,680,000 | 2.76 | 681,000 | | Indicated | 7,988,000 | 2.89 | 741,000 | | | | Measured + Indicated | 15,668,000 | 2.82 | 1,422,000 | | | | Inferred | 975,000 | 2.11 | 66,000 | | | | Underground | 2.40 | Measured | 1,576,000 | 7.45 | 377,000 | | Indicated | 4,350,000 | 5.59 | 782,000 | | | | Measured + Indicated | 5,925,000 | 6.09 | 1,159,000 | | | | Inferred | 2,206,000 | 5.89 | 418,000 | | | | Combined Open Pit and Underground* | 0.45

and

2.40 | Measured | 9,255,000 | 3.56 | 1,058,000 | | Indicated | 12,338,000 | 3.84 | 1,523,000 | | | | Measured + Indicated | 21,593,000 | 3.72 | 2,581,000 | | | | Inferred | 3,181,000 | 4.73 | 484,000 | | |

_* Combined Open Pit and Underground Mineral Resources; The Open Pit Mineral Resource is based on a 0.45 g/t gold cut-off grade, and the Underground Mineral Resource is based on 2.40 g/t gold cut-off grade._

Mineral Resource Estimate Notes

1. Mineral Resources were prepared in accordance with NI 43-101 and the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014) and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2019). Mineral Resources that are not mineral reserves do not have demonstrated economic viability. This estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. 2. Mineral Resources are inclusive of Mineral Reserves. 3. _Open Pit Mineral Resources are reported at a cut-off grade of 0.45 g/t gold that is based on a gold price of C$2,000/oz (~US$1,600/oz) and a metallurgical recovery factor of 89% around cut-off as calculated from ((GRADE-(0.0262*LN(GRADE)+0.0712))/GRADE*100)-0.083._ 4. Underground Mineral Resource is reported at a cut-off grade of 2.60 g/t gold that is based on a gold price of C$2,000/oz (~US$1,600/oz) and a gold processing recovery factor of 97%. 5. Assays were variably capped on a wireframe-by-wireframe basis. 6. Specific gravity was applied using weighted averages to each individual wireframe. 7. Effective date of the Mineral Resource Estimate is November 15, 2021. 8. All figures are rounded to reflect the relative accuracy of the estimates and totals may not add correctly. 9. Excludes unclassified mineralization located within mined out areas. 10. Reported from within a mineralization envelope accounting for mineral continuity.

Mining and Mine Design

The Feasibility Study utilizes the Mineral Resource Estimate (see Table 2) that is conceptually mineable with open pit mining methods. Only portions of the Mineral Resource Estimate that fall within the constraints defined by the open pit parameters of the Study listed below (the "Mining Inventory") are used to inform the Study economics.

Economic limits for the two open pits were determined using Geovia's Whittle™ 4.7 software that uses the Lerchs-Grossmann ("LG") algorithm. The LG algorithm progressively identifies economic blocks, taking into account waste stripping, which results in a highest possible total value mined within the open pit shell subject to the specified pit slope constraints. The Pit Limit Analysis was performed on the Goldboro resource block model.

A 3D geological block model and other economic and operational variables were used as inputs into the LG algorithm. These variables include overall pit slope angle, mining costs, processing costs, selling costs, metal prices, and other variables. The economic parameters used for the pit limit analysis are listed in Table 3.

Table 3: Pit Limit Analysis Parameters

Plus 5% factor for Mining Loss within optimization program

Overall effect of ~26% additional tonnes and

Three boundary constraints were used in the pit limit analysis for the Goldboro Deposit:

A 40 metre (X-Y) offset from the Natural Gas pipeline easement, on the west side of the property; A 50 metre (X-Y) offset from the edges of the Gold Brook Lake; and A 20 metre (X-Y) offset from the centerline of Gold Brook.

The block models were created in Datamine using 2 metre x 2 metre x 2 metre parent cell and variable sub-celling to 1 metre. For the open pit evaluation, the resource block model in Datamine format was reblocked to a regularized block model in Datamine format using Deswik.CAD. Default waste blocks and overburden blocks were added to the model. The envisioned selective mining excavator, at the onset of the analysis, will likely have a bucket width of approximately two metres. Mining is planned at an eight metre operating bench height.

To classify the material contained within the open pit limits as material for processing or material for waste, the milling cut-off grade is used. This break-even cut-off grade is calculated to cover the costs of processing, general and administrative costs, and selling costs using the economic and technical parameters listed inTable 3. Mineral Resource material contained within the pit and above the cut-off grade is classified as potential mill feed ("PMF"), while resource material below the cut-off grade is classified as waste.

The cut-off grade has been estimated to be 0.45 g/t gold for the Open Pit. Table 4provides the Mining Inventory for the Open Pits.

Table 4: Planned OP Mining Inventory - Tonnes and Grade by Category

| Pit Area | Category | Diluted Tonnes | Diluted Grade

(g/t gold) | Contained Gold (Troy ounces) | | West Pit | Probable Mineral Reserve | 10,331,000 | 2.12 | 704,000 | | Overburden | 5,196,000 | | | | | Waste Rock | 73,681,000 | | | | | Total Waste Rock | 78,877,000 | | | | | Total Rock Mined | 89,208,000 | | | | | East Pit | Probable Mineral Reserve | 5,468,000 | 2.54 | 446,000 | | Overburden | 3,061,000 | | | | | Waste Rock | 44,813,000 | | | | | Total Waste Rock | 47,874,000 | | | | | Total Rock Mined | 53,342,000 | | | |

Mine Operations

The operating scenario outlined in the Feasibility Study involves open pit mining at an average mining rate of 12.7 Mt per year and a gold processing plant with a capacity of 1.46 Mt per year (4,000 tpd). The Study contemplates a conventional truck-shovel open pit mining operation within two pits (Figures 1 and 2). The open pit production period is approximately 11 years with one year of pre-production development. The open pit analysis results in two distinct open pits separated by Gold Brook Lake. The dimensions of the West Pit are approximately 1,025 metres long x 520 metres wide x 250 metres deep. The dimensions of the East Pit are approximately 775 metres long x 410 metres wide x 190 metres deep.

The Open Pit LOM plan proposes to mine approximately 15.8 Mt of PMF at a cut-off grade of 0.45 g/t gold, 8.3 Mt of overburden material and 118.5 Mt of waste rock material. The average stripping ratio is 8.0:1 waste tonnes to ore tonnes.

The Goldboro open pits were designed with the following preliminary assumptions:

Nine (9) geotechnical sectors with bench face angles ranging from 70o to 85o, inter-ramp angles ranging from 49oto 59o; Operational bench height of 8 metres and a final bench height of 16 metres; Berm width of 8.0 metres; and Ramp width of 25 metres, including 3x truck width (6.1 metres) for double lane traffic running surfaces, and allowances for safety berm and drainage ditch.

The Study open pit deign is outlined in Figures 1 and 2below. The East Pit is currently planned to be developed in two stages, while the West Pit is planned to be developed in three phases. The East Pit would be completed in Year 8 of production and the West Pit is completed in Year 11 of production. Therefore, the East Pit will be available for the placement of waste rock from the West Pit, reducing haulage distances and related costs.

Figure 1: Goldboro Open Pit, Plan View

Figure 2: Goldboro Open Pit, Long Section View (looking North-Northeast)

Earlier from Magna Terra Minerals Inc.

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