Mr. Dustin Angelo reports

ANACONDA MINING EXPANDS ITS GREAT NORTHERN PROJECT WITH THE ACQUISITION OF THE RATTLING BROOK DEPOSIT

Anaconda Mining Inc. has acquired the Rattling Brook deposit in northwest Newfoundland, pursuant to an acquisition agreement between Anaconda and Kermode Resources Ltd. dated Jan. 25, 2018. Under the agreement, the company has acquired a mineral licence that hosts the Rattling Brook deposit containing a historical resource estimate with an inferred resource of 495,000 ounces within 425 hectares of property and is contiguous with Anaconda's existing landholdings in the immediate area.

The acquisition of Rattling Brook and the surrounding property consolidates Anaconda's prospective land position in the Northern peninsula, which also includes the Thor deposit, located approximately 20 kilometres south of Rattling Brook along strike. The Thor deposit contains an indicated resource of 83,000 ounces and an inferred resource of 31,000 ounces. Anaconda has amassed, on the Northern peninsula, two deposits, a land position of nearly 10,000 hectares, numerous prospects and associated prospective geology, all collectively referred to as the Great Northern project.

Highlights of the Great Northern project

• Located adjacent to the Doucers Valley fault, part of the Long Range fault system -- a fertile gold-bearing structure, similar to that associated with Marathon Gold's Valentine Lake project in central Newfoundland, which has been the focus of recent significant resource growth and discovery;
• Two gold resources with a combined inferred mineral resource of 526,000 ounces and an indicated mineral resource of 83,000 ounces;
• Includes 9,975 hectares coincident with approximately 20 kilometres of strike along highly prospective geology of the Doucers Valley fault;
• Potential to upgrade the size and grade of the existing resource through resource evaluation;
• Excellent infrastructure with road access to the key areas of interest.

"The acquisition of the Rattling Brook deposit consolidates Anaconda's land position within the region of our exploration portfolio and is the first step in a strategy to realize shareholder value for the Great Northern project. There is a renewed interest in the gold exploration potential in Newfoundland, and we believe we are well positioned to generate value from our now-expanded Great Northern project. As we focus on our development- and production-stage assets, we are pursuing options to unlock value we believe lies within the Great Northern project for our shareholders," said Dustin Angelo, president and chief executive officer.

Strategic plans

The Great Northern project is a sizable exploration package of highly prospective targets in an underexplored area, underpinned by two existing gold deposits. Based on historical data and Anaconda's own exploration work, the company believes there is a potential to expand the known mineral resources and discover more throughout its project area.

With continued focus on the development of the high-grade Goldboro gold project in Nova Scotia and extending the mine life at the Point Rousse mine operation in Newfoundland, the company is reviewing strategic options to maximize the value of its highly prospective exploration-stage Great Northern project. With the addition of Rattling Brook, Anaconda has strengthened its Great Northern portfolio to drive maximum value for the entire project area.

The agreement

Pursuant to the agreement, Anaconda paid Kermode an initial cash payment of $25,000 and issued Kermode $500,000 of Anaconda common shares, equal to 1,113,218 common shares based on a 20-day volume-weighted average trading price ending as of Jan. 24, 2018. Anaconda will also pay Kermode an additional cash payment of $25,000 on Feb. 26, 2018. The consideration shares are subject to a hold period that will expire on May 27, 2018, in accordance with the rules and policies of the Toronto Stock Exchange and applicable Canadian securities laws and are also subject to further transfer restriction pursuant to the terms of the agreement.

About resources and technical reports

  
       SUMMARY OF MINERAL RESOURCES AT THE GREAT NORTHERN PROJECT     
         
Deposit                       Category      Tonnes    Grade   Ounces gold

Thor* (current estimate)     Indicated   1,817,000     1.42        83,000     
                              Inferred     847,000     1.15        31,000     
Rattling Brook** 
(historical estimate)         Inferred  18,310,000     0.84       495,000    

* The Thor deposit forms part of the project formerly referred to as 
the Viking project. The resources quoted in this press release refer 
to the technical report, "NI 43-101 Technical Report and Mineral 
Resource Estimate on the Thor Deposit, Viking Project, White Bay Area, 
Newfoundland and Labrador, Canada," with an effective date of Aug. 29, 
2016, and written by independent qualified persons David A. Copeland, 
MSc, PGeo, an independent consultant; Dr. Shane Ebert, PhD, PGeo, an 
independent consultant; and Gary Giroux, MASc, PEng, of Giroux 
Consultants Ltd.
** The Rattling Brook deposit, including the Apsy, Road and Beaver 
Dam zones, forms part of the project formerly referred to as the 
Jacksons Arm gold project. The historical resources quoted in this 
press release refer to the technical report, "Technical Report on 
Mineral Resource Estimate Jacksons Arm Gold Project, White Bay, 
Newfoundland and Labrador," with an effective date of April 20, 2009, 
and written by Michael P. Cullen, MSc, PGeo; Chrystal Kennedy, BSc, 
PGeo; Matthew Harrington, BSc (honours); Andrew Hilchey, BSc (honours), 
Mercator Geological Services.

The Rattling Brook resource is a historical estimate as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects. The historical estimate is relevant, considered reliable and uses categories appropriate to NI 43-101 reporting requirements. No other resource estimates are known to Anaconda. To verify and upgrade the estimate as a current mineral resource will require further discussions with qualified persons who created the technical report. Qualified persons working on behalf of Anaconda have not done sufficient work to classify the historical estimate as a current mineral resource; as a result, Anaconda is not treating the historical estimate as a current mineral resource.

This news release has been reviewed and approved by Paul McNeill, PGeo, vice-president of exploration with Anaconda Mining, a qualified person under NI 43-101.

A version of this press release will be available in French on Anaconda's website in two to three business days.

About Anaconda Mining Inc.

Anaconda is a Toronto Stock Exchange-listed gold mining, exploration and development company focused in the prospective Atlantic Canadian jurisdictions of Newfoundland and Nova Scotia. The company operates the Point Rousse project located in the Baie Verte mining district in Newfoundland, comprising the Pine Cove open-pit mine, the fully permitted Pine Cove mill and tailings facility, the Stog'er Tight and Argyle deposits, and approximately 5,800 hectares of prospective gold-bearing property. Anaconda is also developing the recently acquired Goldboro project in Nova Scotia, a high-grade mineral resource, with the potential to leverage existing infrastructure at the company's Point Rousse project.

The company also has a pipeline of organic growth opportunities, including the Great Northern project on the Northern peninsula and the Tilt Cove property on the Baie Verte peninsula.

We seek Safe Harbor.