TORONTO, ONTARIO -- (MARKET WIRE) -- 11/20/08 -- Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX: ANX) has received formal notice from Minera Penoles de Chile Ltda ("Penoles"), its joint venture partner at the Inca de Oro Sur Project ("Inca de Oro Sur" or the "Project"), that it will not continue into the second year of the option and joint venture agreement governing the Project. "The economic uncertainty prevailing globally has resulted in a rapid and dramatic pullback in commodity prices, specifically for base metals. This has resulted in many mining development and exploration projects being cancelled or deferred, and as such our partner has elected not to proceed," said Lew Lawrick, President and CEO. The Company is currently evaluating its options regarding Inca de Oro Sur, and is in discussions with the project vendor on deferring or renegotiating the terms that remain outstanding on its underlying option, but there is no guarantee that it will be successful in doing so.

The Company continues to focus on generating value from its core project assets. At our Pine Cove gold mine in Newfoundland, efforts are ongoing to maximize gold recoveries and production. The Company is evaluating opportunities to maximize cash flow from this operation and will update shareholders as developments occur. The San Gabriel Iron Project in the Atacama region of Chile remains a priority project for the Company, and we are presently exploring near-term production opportunities and strategic partnerships. Through strict cash management and judicious use of resources, we are focused on advancing these projects and maximizing value in this difficult economic environment.

About Anaconda

Anaconda is a Toronto, Canada-based mining company with a portfolio of advanced-stage exploration projects in Canada and South America.

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