Mr. Dustin Angelo reports

ANACONDA MINING MAKES SECOND $500,000 PRINCIPAL PAYMENT ON OUTSTANDING DEBT

Anaconda Mining Inc., on April 24, 2012, made another principal payment against the outstanding convertible loan, Series I debentures and Series II debentures. The principal payments totalled $500,360 and were divided pro rata across the loans. Since March 28, 2012, the company has made approximately $1-million in principal payments against the loans and reduced the outstanding balance from $6.9-million to $5,899,280.

President and chief executive officer Dustin Angelo stated: "Pine Cove continues to perform well, which has enabled the company to generate the necessary cash flow to service its interest-bearing debt as well as allocate resources to growth opportunities. With proceeds from our Chile transaction and more cash flow from Pine Cove, we still expect to cut our interest-bearing debt nearly in half by May 31, 2012."

We seek Safe Harbor.