Mr. Dustin Angelo reports

ANACONDA MINING COMPLETES $2.03 MILLION BROKERED FLOW THROUGH PRIVATE PLACEMENT

Anaconda Mining Inc. has issued 29,103,787 flow-through units of the company at a price of seven cents per unit for total gross proceeds of $2,037,265.09 pursuant to its previously announced private placement. Each unit consists of one flow-through common share and one-half of one common share purchase warrant issued on a non-flow-through basis. Each warrant entitles the holder thereof to purchase one common share of the company at a price of 10 cents until July 27, 2017. On a per-unit basis, the company has allocated 6.99 cents of the price per unit to each flow-through common share and 0.01 cent of the price per unit to the warrant. An amount equal to the gross proceeds from the flow-through common shares (6.99 cents per flow-through common share) will be used to incur Canadian exploration expenses, as defined under the Income Tax Act (Canada), which will be renounced by the company in favour of the purchasers of units with an effective date of no later than Dec. 31, 2016.

"The company plans to use the proceeds raised to accelerate the surface exploration near the company's 1,200-tonne-per-day Pine Cove mill, where the company has successfully identified several higher-grade exploration targets," commented Dustin Angelo, president and chief executive officer of Anaconda Mining. "Our top priority continues to be the growth of near-surface, higher-grade mineral resources that would help grow our production profile, lower unit costs and improve the company's internal rate of return to shareholders."

It is expected that the proceeds of the offering will be used for surface exploration activities to test targets located within processing distance of the company's Pine Cove mill (the Stog'er Tight, Goldenville, Argyle and Viking targets).

Red Cloud Klondike Strike Inc. acted as agent with respect to the offering, pursuant to which it received a cash commission equal to 6 per cent of the gross proceeds of the offering (which for greater certainty, excluded securities acquired by investors identified by the company) and 1,376,560 broker warrants, each of which is exercisable to acquire one common share at a price of 10 cents until July 27, 2017.

All of the securities sold pursuant to the offering are subject to a hold period expiring on Nov. 28, 2016, in accordance with the rules and policies of the Toronto Stock Exchange and applicable Canadian securities laws. The offering remains subject to the final approval of the TSX.

We seek Safe Harbor.