ANACONDA MINING INC. ANNOUNCES COMPLETION OF FULLY SUBSCRIBED RIGHTS OFFERING

TORONTO, May 5 /CNW/ --
TORONTO, May 5 /CNW/ - Anaconda Mining Inc. (TSX: ANX) ('Anaconda' or
the 'Corporation') announces completion of the fully subscribed rights
offering to holders of common shares announced on April 4, 2011. 
Anaconda issued to holders of its common shares as of record at the
close of business on April 7, 2011 transferable rights certificates to
subscribe for common shares before 4:00 p.m. (Toronto time) on May 3,
2011 on the terms set out in a rights offering circular dated March 31,
2011 (the 'Rights Offering Circular').  The Rights Offering Circular is
available on the SEDAR website at www.sedar.com.  One right (a 'Right') was issued for each common share outstanding
and four (4) Rights will permit the shareholder to purchase one common
share (a 'Share') for $0.07 per Share.

A total of 31,686,443 Shares were issued pursuant to the exercise of the
Rights for total gross proceeds of $2,218,051. The Shares have been
approved for listing on the TSX.  Net proceeds after Rights Offering
expenses will be released to Anaconda to be used for working capital
purposes.

A total of 9,587,164 Shares were issued pursuant to the exercise of the
Rights by public shareholders for total gross proceeds of $671,101. The
remaining 22,099,279 Shares were issued pursuant to a standby guarantee
(the 'Standby Guarantee') for gross proceeds of $1,546,950.  The
Standby Guarantee was provided by certain investors including members
of management.  Of the gross proceeds raised pursuant to the Standby
Guaranty, $1,445,909 was applied to the repayment of promissory notes
due on June 29, 2011 and June 30, 2011 ('Promissory Notes') previously
advanced by the standby guarantors including $302,500 principal amount
of Promissory Notes held by insiders.  Pursuant to the Standby
Guarantee, the standby guarantors were issued 7,921,611 common share
purchase warrants (the 'Guarantor Warrants').  Each whole Guarantor
Warrant entitles the holder to purchase one common share for $0.08
until May 3, 2013.

ABOUT ANACONDA

Anaconda is a Toronto, Canada based mining and exploration company
focused on operating the Pine Cove gold mine located near Baie Verte in
Newfoundland, Canada and, with its joint venture partner, Inversiones
SBX Limitada, advancing the development and exploration of its iron ore
portfolio in Chile.

FORWARD LOOKING STATEMENTS

This document contains or refers to forward-looking information. Such
forward-looking information includes, among other things, statements
regarding targets, estimates and/or assumptions in respect of future
production, mine development costs, unit costs, capital costs, timing
of commencement of operations and future economic, market and other
conditions, and is based on current expectations that involve a number
of business risks and uncertainties. Factors that could cause actual
results to differ materially from any forward-looking statement
include, but are not limited to: the grade and recovery of ore which is
mined varying from estimates; capital and operating costs varying
significantly from estimates; inflation; changes in exchange rates;
fluctuations in commodity prices; delays in the development of the any
project caused by unavailability of equipment, labour or supplies,
climatic conditions or otherwise; termination or revision of any debt
financing; failure to raise additional funds required to finance the
completion of a project; and other factors. 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 Anaconda's beliefs in the potential
mineralization, are based on current expectations and entail various
risks and uncertainties. Forward-looking statements are subject to
significant risks and uncertainties and other factors that could cause
actual results to differ materially from expected results. Readers
should not place undue reliance on forward-looking statements. These
forward-looking statements are made as of the date hereof and we assume
no responsibility to update them or revise them to reflect new events
or circumstances, except as required by law.

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FOR ADDITIONAL INFORMATION CONTACT: 

Company website: www.anacondamining.com