Mr. Dustin Angelo reports

ANACONDA OPTIONS 1,804 HECTARES AROUND PINE COVE; NEARLY DOUBLES ITS LAND PACKAGE ON THE PENINSULA

Anaconda Mining Inc. has entered, effective July 19, 2012, into a five-year option agreement with Fair Haven Resources Inc. to acquire a 100-per-cent undivided interest in 11 exploration licences totalling 71 claims or approximately 1,804 hectares near its Pine Cove mine. The licences, which are adjacent to the recently optioned Tenacity gold property (please see press release dated May 7, 2012), cover highly prospective rocks of the Point Rousse complex, including portions of the Goldenville iron formation, which is host to the historic Goldenville mine. The new acquisition further consolidates Anaconda's strategic land position north and south of its Pine Cove mine.

President and chief executive officer Dustin Angelo stated: "In only two transactions, Anaconda has increased its land package around Pine Cove sixfold to approximately 4,000 hectares. The Fair Haven properties enable us to expand our exploration efforts beyond the prospecting work currently being done on the Pine Cove mining lease, outside of the current pit operation, and the Tenacity gold mining licences. With our large, highly prospective land package, we are committed to discovering another economic deposit in the area and growing Pine Cove."

In the near term, the company does not have any material, mandatory obligations related to the licences; however, it is obliged to keep the licences in good standing during the term of the option. During the remainder of calendar 2012, the company is required to make exploration expenditures of approximately $7,000.

We seek Safe Harbor.