Mr. Dustin Angelo reports

ANACONDA MINING INITIATES FURTHER DRILLING AT GOLDBORO TO UPGRADE AND EXPAND MINERALIZATION FOLLOWING POSITIVE PEA

Anaconda Mining Inc. has initiated the second stage of an expanded 7,000-metre diamond drill program at its Goldboro project in Nova Scotia, as originally announced on Nov. 1, 2017. The 4,500-metre drill program will focus on the East Goldbrook (EG system) and Boston Richardson (BR system) gold systems of the Goldboro deposit. The aim of the drill program is to test the underexplored portions of the deposit, which have the potential to expand or upgrade mineral resources, particularly in the areas identified for development within the recently announced positive preliminarily economic assessment (PEA) (see announcement of Jan. 17, 2018). The drill program is fully financed by a flow-through financing that closed on Oct. 31, 2017.

Key results from the diamond drill programs completed by Anaconda at the Goldboro project since June, 2017, include:

• Intersected the highest-grade assays recorded in the Goldboro deposit (2,513.20 grams per tonne (g/t) gold over 0.5 metre within 485.07 g/t gold over 2.6 metres);
• Expanded the mineralized zones along the limbs of both the EG and BR systems;
• Extended known mineralization down plunge by as much as 375 metres and demonstrated the structure, which hosts the deposit, may extend farther down plunge;
• Confirmed the geological model of the deposit through infill and expansion drilling.

"We're excited about the next stage of our drill program and building off the results from the first five holes. Expansion drilling continues to demonstrate that there is potential for further mineral resource growth. In addition, our infill drilling will bring more confidence to the known deposit area where we have intersected more high-grade gold and identified new zones of mineralization not previously identified during wider-spaced historic drill campaigns. Since June, 2017, when Anaconda began work at Goldboro, we have increased the value of the project through our focused drill programs and the delineation of a positive PEA. We look forward to continued investment in Goldboro and demonstrating the value of the project to our stakeholders and investors," said Dustin Angelo, president and chief executive officer.

Overview of second stage of drill program

Anaconda will target several areas with the intention of infilling the EG and BR systems, as well as expanding the known mineralization down plunge and downdip of the mineralized fold limbs. The first target is Section 9100E, located in the core of the deposit, but contains inferred resources because of the relatively sparse density of drilling on that section. It is 50 metres west of Section 9150E where the company recently announced assay results including 34.70 g/t gold over 3.5 metres in hole BR-17-09 and 24.34 g/t gold over 3.8 metres in hole BR-17-06 (see press release dated Feb. 7, 2018). Farther to the east in the EG system, Anaconda will focus on several other areas that are also currently classified as inferred resources, with the intention of upgrading those mineral resources and expanding the BR system which plunges below the EG system along strike.

The Goldboro resource

 
                 THE GOLDBORO MINERAL RESOURCES AS REPORTED ON JAN. 17, 2018
  
Resource type           Au cut-off       Category         Tonnes        Au      Troy ounces
                             (g/t)                     (rounded)     (g/t)        (rounded)

Open pit                       0.5       measured        397,000      2.88           36,800
                                        indicated        662,000      3.09           65,800
                                     measured and
                                        indicated      1,059,000      3.01          102,500
                                         inferred         45,000      2.54            3,700
Underground                      2       measured         22,000       4.7            3,300
                                        indicated      2,564,000      5.09          419,600
                                     measured and
                                        indicated      2,586,000      5.09          422,900
                                         inferred      2,497,000      4.28          343,600
Combined open
pit and underground      0.50/2.00       measured        419,000      2.98           40,100
                                        indicated      3,226,000      4.68          485,400
                                     measured and
                                        indicated      3,645,000      4.48          525,400
                                         inferred      2,542,000      4.25          347,300

This news release has been reviewed and approved by Paul McNeill, PGeo, vice-president, exploration, with Anaconda Mining, a qualified person, under National Instrument 43-101 Standard for Disclosure for Mineral Projects.

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 mine, and the Argyle deposit, as well as approximately 5,800 hectares of prospective gold-bearing property.

We seek Safe Harbor.