Anaconda Mining Inc. ("Anaconda" or the "Company") (TSX:ANX), is pleased to
announce the results of an initial independent mineral resource estimate for the
San Gabriel Iron Project ("San Gabriel" or the "Project"), located in northern
Chile near the coastal deep-water port of Chanaral. The Company is also pleased
to announce it is working with two engineering consultants who will focus on the
advancement of metallurgical and logistical studies.


The initial mineral resource estimate for the Project totals 57.9 million tonnes
("Mt") at an average grade of 32 percent total iron ("% Fe") in the indicated
category and a further 2.6 Mt at an average grade of 29% Fe in the inferred
category. The mineral resource is contained within three zones, namely the San
Gabriel (Main), Esperanza and Antonia zones and uses a cutoff grade of 20% Fe
(Table 1). See below for additional information related to this mineral resource
estimate.




Table 1. San Gabriel Initial Mineral Resource Estimate(1)
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Zone                       Category       Tonnage      Iron Grade
                                              (Mt)          (% Fe)
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San Gabriel (Main)        Indicated          53.6              31
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Esperanza                 Indicated           4.3              41
------------------------------------------------------------------
Total Indicated                              57.9              32
------------------------------------------------------------------
Antonia                    Inferred           2.6              29
------------------------------------------------------------------
Total Inferred                                2.6              29
------------------------------------------------------------------
(1)using a cutoff of 20% iron



Consultants

The Company's local Chilean exploration contractor, SBX Consultores ("SBX"),
retained the services of two engineering consultants, Mr. Nelson Rojas and Mr.
Antonio Barros, both of whom are based in Chile.


Mr. Rojas is a Mining Consultant with a degree in Civil Mining Engineering and
over 30 years experience in open pit and underground mining operations and
mining project evaluation. He has worked for, and consulted to, iron mining and
exploration companies both in Chile and abroad. This work has included the
evaluation of mineral resources, engineering, metallurgical testing and flow
sheet development associated with the production of various iron ore products,
including pellets, fines and lump ore. Mr. Rojas will focus on ongoing
metallurgical test work and the development of flow sheets for San Gabriel.


Mr. Barros is a Logistics Specialist with a degree in Civil Engineering. He has
over 20 years experience in the lumber and agriculture industries, focused on
the seaborne export of these commodities from Chile to international markets.
Mr. Barros has extensive knowledge of the Chilean port system and supporting
infrastructure. Mr. Barros will examine logistics related to the potential
development of San Gabriel.


Lew Lawrick, President and CEO of Anaconda, comments: "We are excited to be
announcing this initial mineral resource for San Gabriel, less than a year after
drilling our first hole on the property. San Gabriel is a high-quality iron
resource, located within a mining-friendly country and in an area of excellent
infrastructure. I am also pleased to have Nelson and Antonio working with our
team. With their experience in engineering, metallurgy and logistics, we are
strengthening our expertise to rapidly advance this exciting Project, in a
climate of record high iron prices and growing demand."


Additional Mineral Resource Estimate Disclosure

The mineral resource estimate was prepared as at August 12, 2008 and is based on
the results of 71 reverse circulation holes (17,566 metres) and 5 diamond holes
(2,190.95 metres) drilled by Anaconda between September, 2007 and May, 2008.


Michael Easdon, a Registered Professional Geologist in the state of Oregon and a
Qualified Person, as such term is defined in National Instrument 43-101 ("NI
43-101"), audited and confirmed the resource estimate presented in this release.
Mr. Easdon is a Consulting Geologist and is independent of Anaconda. Mr. Easdon
is responsible for, and has verified the technical information, including drill
core and chip sampling, analytical and test data underlying the mineral resource
estimate prepared herein. Mr. Easdon is not aware of any environmental,
permitting, legal, title, taxation, socio-political, marketing or other issues
that may materially affect the mineral resource estimate disclosed in this
release. Mr. Easdon is currently preparing a NI 43-101 compliant technical
report, which will be filed on SEDAR on or before August 29, 2008.


Assaying and analytical work was performed by Asesoria Minera Geoanalitica
Ltda.'s ("Geoanalitica") lab located in La Serena, Chile. Geoanalitica is ISO
9001:2000 certified and independent of Anaconda. Drill core, chips and trench
channel samples were sampled and analyzed for total iron using standard wet
chemical dissolution, followed by atomic absorption finish.


Separate and independent (Andes Analytical Assays of Santiago, Chile) check
assays were performed on 97 pulps which generally confirmed that Geoanalitica is
properly assaying the submitted samples. In addition, Anaconda selected 68
composites (comprising composites of between 2 and 24 2-metre samples) which
were assayed by Geoanalitica using the standard volumetric wet analysis
technique which confirmed that the initial iron values reported by Geoanalitica
were reliable and repeatable.


Quality Assurance/Quality Control ("QA/QC") procedures were reviewed by Mr.
Easdon and found to be acceptable and conforming to normal industry standards.
Mr. Easdon has visited the Project and the Company's storage, sampling and
logging facility located in Copiapo. Mr. Easdon has reviewed sampling and
Quality Assurance and Quality Control procedures. Mr. Easdon has informed
Anaconda that he considers the quality of the assay data to be adequate for the
estimation of potential mineral resources. The initial mineral resource estimate
for San Gabriel was performed utilizing geological cross and longitudinal
sections and level plans. The mineral resource estimate presented herein is
classified in accordance with the Canadian Institute of Mining, Metallurgy and
Petroleum's "CIM Standards on Mineral Resources and Reserves, Definitions and
Guidelines" as per Canadian Securities Administrator's National Instrument
43-101 requirements.


An indicated mineral resource is that part of a mineral resource for which
quantity, grade, densities, shape and physical characteristics can be estimated
with a level of confidence sufficient to allow the appropriate application of
technical and economic parameters, to support mine planning and evaluation of
the economic viability of the deposit. An inferred mineral resource is that part
of a mineral resource for which quantity and grade can be estimated on the basis
of the geologic evidence and limited sampling and reasonably assumed, but not
verified, geological and grade continuity.


It cannot be assumed that the inferred mineral resources will be upgraded to an
indicated mineral resource as a result of continued exploration. Furthermore, it
cannot be assured that indicated or inferred mineral resources will be converted
to a "reserve" category at such time as feasibility studies are initiated.


Property Overview

The 3,800 hectare Project lies 60 km northeast of the Pacific coastal city of
Chanaral, which has potential to provide the required infrastructure for
shipping iron ore overseas. The Project is located within 15 km of a
transmission line, 20 km of a rail line and 25 km from a main highway.


Mineralization consists of a magnetite magmatic intrusive and magnetite-bearing
metasomatised volcaniclastic andesitic host rocks occurring as a roof pendant in
dioritic intrusives of Jurassic to lower Cretaceous age. Skarn-related iron
mineralization is characteristic of the Chile-Peru coastal region and forms
deposits ranging from a few million tons to billion ton ore bodies such as
Marcona in Peru.


Preliminary metallurgical testwork, as reported in an Anaconda news release of
January 21, 2008, demonstrates that the San Gabriel (Main) zone contains
high-quality magnetite-bearing material. Analyses of magnetic concentrates
returned very low levels of impurities, or penalty elements (specifically
silica, phosphorous, sulphur, and copper), and the mineralization is thus
potentially amenable to beneficiation to a high-quality concentrate.


Anaconda has the right to earn a 100% interest in San Gabriel by making payments
totaling US$2.4 million over four years, including a US$20,000 payment made on
signing (see Anaconda news release dated September 20, 2007 for additional
information regarding the San Gabriel option agreement).


About Anaconda

Anaconda is a Toronto, Canada-based mining company with a portfolio of
advanced-stage exploration projects in Canada and South America. The diversified
portfolio is supported by near-term cash flow from the Pine Cove Gold Mine,
located in Newfoundland, Canada.


The Company is presently focused on San Gabriel, where it has identified several
zones of magnetite-iron mineralization. San Gabriel is advantageously located
close to road, rail, power and deep-sea port facilities. The Company continues
to aggressively advance San Gabriel to evaluate its potential to host economic
concentrations of iron mineralization. The Company is actively pursuing new
opportunities to complement its existing portfolio.


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.