Anaconda Announces Definitive Agreements with Crew Gold and New Island Resources for Custom Milling

TORONTO, ONTARIO, Jun 01 (MARKET WIRE) --
Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX: ANX), is pleased
to announce that it has entered into a Toll Processing Agreement with
Crew Gold Canada Inc. ("Crew") (TSX: CRU), whereby Anaconda will deliver
ore for processing from its Pine Cove gold mine to Crew's Nugget Pond
mill. The toll processing arrangement will commence no later than July 1,
2009 and continue for a period of 12 months.

Further, Anaconda has also entered into a Side Agreement with its joint
venture partner New Island Resources Inc. ("New Island") (TSX VENTURE:
NIS) pertaining to the toll processing opportunity as defined in the
agreement with Crew. The Side Agreement outlines, among other things, the
recovery by Anaconda of certain agreed to capital expenditures up to a
maximum of $4,000,000 as well as the basis where net cash flows from the
custom milling arrangement will be distributed to both Anaconda and New
Island on an equal basis. As a result, the arbitration process that
commenced March 3rd and was suspended on April 15th has been withdrawn in
its entirety.

"The execution of these agreements will allow us to proceed as planned
with custom milling ore from our Pine Cove mine at Crew's Nugget Pond
milling facility without delay", stated Lewis Lawrick, President & CEO of
Anaconda. "The arrangements we now have in place are beneficial to all
parties involved. Anaconda will continue to undertake modifications to
the Pine Cove mill to facilitate Commercial Production in the near term."

Anaconda has recommenced mining operations (drilling and blasting) to
facilitate the stockpiling of ore ahead of the scheduled start up of the
custom milling contract. Currently, ore delivery to the Nugget Pond mill
site is set to begin during the week of June 15, with preliminary milling
to commence the week of June 22 once sufficient ore is in stockpile at
Nugget Pond. Anaconda will be providing regular updates to this schedule
as well as an update on its Pine Cove milling operations.

About Anaconda

Anaconda is a Toronto, Canada based mining and exploration company
focused on advancing its principal assets, the Pine Cove gold mine in
Canada and the San Gabriel Iron Project in Chile. The Company is
committed to bringing Pine Cove into full Commercial Production, as well
as developing near term production opportunities for San Gabriel.

Certain statements contained herein constitute "forward-looking
statements". These forward- looking statements are based on current
expectations. The nature, timing and extent of the exploration programs
at the San Gabriel Iron Project may materially change from current
intentions for a number of reasons. Additionally, forward-looking
statements look into the future and provide an opinion as to the effect
of certain events and trends on the business. Forward-looking statements
may include words such as "plans," "may," "estimates," "expects,"
"indicates," "targeting," "potential" and similar expressions. These
forward-looking statements, including statements regarding the Company's
beliefs in the potential mineralization, are based on current
expectations and entail various risks and uncertainties. Actual results
may materially differ from expectations as more information regarding the
property is gathered or if known and unknown risks or uncertainties
affect the Company's business, or if the Company's estimates or
assumptions prove inaccurate. The Company assumes no obligation to update
or revise any forward-looking statement, whether as a result of new
information, future events or any other reason.

Contacts:
Anaconda Mining Inc.
Lew Lawrick
President and CEO
(416) 864-3357
Email: llawrick@anacondamining.com

Anaconda Mining Inc.
Belinda Labatte
Investor Relations
(647) 436-2152
Email: info@anacondamining.com
Website: www.anacondamining.com

Copyright 2009, Market Wire, All rights reserved.

-0-