Anaconda Mining Inc. announced the results of a recent drill program on the Pine Cove deposit consisting of 1,156 metres of diamond drilling within 14 shallow holes. The program was focused on the southern margins of the Pine Cove deposit at a maximum depth of 75 metres in an area known as Pine Cove Pond, which is currently not part of the mine plan. The Pine Cove Pond Indicated Resource is estimated at 328,000 tonnes at 1.83 grams per tonne (‘g/t') Au, which was included in the resource estimate published in a 43-101 compliant technical report published on SEDAR on December 8, 2015.

Geological and geophysical evidence suggest that the Pine Cove Pond area may contain the easterly and westerly continuation of the southern portion of the Pine Cove deposit. The goal of the drill program was to understand the limits of known mineralization and establish Mineral Reserves in the Pine Cove Pond area to extend the mine life of the Pine Cove deposit. Highlights of the drilling include, 2.11 g/t Au over 10.5 metres from 9.5 ‘ 20.0 metres and 1.4 g/t Au over 9.0 metres from 24.0 ‘ 33.0 metres in hole PC-15-256; 2.68 g/t Au over 15.9 metres from 6.1 ‘ 21.0 metres in hole PC15-257; 3.16 g/t Au over 5.5 metres from 3.5 ‘ 9.0 metres in hole PC15-252; 1.14 g/t Au over 4.0 metres from 41.0 ‘ 45.0 metres in hole PC15-259; and 1.47 g/t Au over 2.8 metres from 38.0 - 41.8 metres in hole PC15-253.

The drill program was successful in extending known mineralization at the Pine Cove deposit 25 metres to the south, east and west of the current compliant resource. The results indicate that the southern portion of the deposit is open for expansion to the west, near surface, in the area of the hole PC15-257 intersection, and open for expansion east and west of the hole PC15-252 intersection. The company plans follow up drilling to better outline resources in these areas and test the limits of the deposit.

The company will incorporate this information to determine if current and other potential resources can be included in the Pine Cove deposit mine plan. Several other zones of anomalous gold grades and alteration were observed in holes PC15-251, PC15-257 and PC15-259, though not at reportable grades. These intersections are significant, however, in that they indicate continuity of other mineralized zones intersected within the Pine Cove Pond area.

All remaining holes did not contain significant intersections.