The Great Northern Project is an exploration-stage property that forms part of Anaconda’s pipeline of projects within reach of the Pine Cove Mine and Mill Complex.

The Great Northern Project comprises 2 claim blocks (9,975 hectares) referred at as the Jackson’s Arm Property in the north and Viking Property in the south. The properties are located 3 km north and 15 km south of the community of Jackson’s Arm, respectively. The area is accessible by provincial Route 420, which is connected to the Trans-Canada Highway (TCH) 75 km to the south.

Highlights of the Great Northern Project

The Rattling Brook Deposit has an Inferred Mineral Resource Estimate of 5,460,000 tonnes at an average grade of 1.45 grams per tonne (“g/t”) gold for 255,000 contained ounces at a cut-off grade of 1.0 g/t gold;
- Represents a 25% increase in tonnes, a 13% increase in grade and a 42% increase in contained ounces at the 1.0 g/t gold cut-off value compared to the 2008 historic Mineral Resource Estimate that is based on a 0.5 g/t gold cut-off (see Table 2 below for full comparison);
The Thor Deposit* has a current Indicated Mineral Resource Estimate of 1,817,000 tonnes at an average grade of 1.42 g/t gold for 83,000 contained ounces and an Inferred Mineral Resource Estimate of 847,000 tonnes at an average grade of 1.15 g/t gold for 31,000 contained ounces at a cut-off grade of 0.5 g/t gold.
Located adjacent to the Doucers Valley Fault, part of the Long Range Fault system – a fertile gold bearing structure, similar to that associated with Marathon Gold’s Valentine Lake project in central Newfoundland, which has been the focus of recent significant resource growth and discovery;
Two gold resources with a combined Inferred Mineral Resource of 526,000 ounces and an Indicated Mineral Resource of 83,000 ounces;
Includes 9,975 hectares coincident with approximately 20 kilometres of strike along highly prospective geology of the Doucers Valley Fault;
Potential to upgrade the size and grade of the existing resource through resource evaluation;
Excellent infrastructure with road access to the key areas of interest.

Mineral Resource Estimates – Great Northern Project

The updated Mineral Resource Estimate for the Rattling Brook Deposit is 5,460,000 tonnes at an average grade of 1.45 g/t gold for 255,000 contained ounces at a cut-off grade of 1.0 g/t gold in 3 mineralized zones; the Road, Apsy and Beaver Dam zones with an effective date of January 23, 2019 (Table 1). This represents a 25% increase in tonnes, a 13% increase in grade and a 42% increase in contained ounces at the 1.0 g/t cut-off value compared to the 2008 Historic Mineral Resource Estimate*** that is based on a 0.5 g/t gold cut-off (see Table 2 below for full comparison). This increase in Mineral Resources at the higher cut-off value was obtained by refining the geological model for the deposit, primarily through reducing the volume of marginal grade mineralization that is incorporated in the model. A sensitivity report for the Rattling Brook Deposit and comparison with the 2008 Historic Mineral Resource Estimate is presented in Table 2.

Table 1: Rattling Brook Deposit Mineral Resource Estimate – Effective Date: January 23, 2018

Zone	Cut-Off (Au g/t)	Category	Rounded Tonnes	Au (g/t)	Rounded Ounces
Apsy	1.0	Inferred	2,850,000	1.52	139,000
Road	1.0	Inferred	2,120,000	1.28	87,000
Beaverdam	1.0	Inferred	480,000	1.81	28,000
Total	1.0	Inferred	5,460,000	1.45	255,000

This Mineral Resource Estimate was prepared in accordance with NI 43-101 and the CIM Standards (2014)
Mineral Resource Estimate tonnages have been rounded to the nearest 10,000 and ounces have been rounded to the nearest 1,000. Totals may not sum due to rounding.
A cut-off of 1.00 g/t gold was used to estimate Mineral Resources.
Mineral Resources were interpolated using Ordinary Kriging from 1.5 metre downhole assay composites.
An average bulk density of 2.70 g/cm3 has been applied.
Over 90% of Mineral Resources occur above a depth of 150m below surface, the current maximum depth of the Anaconda Mining operated Pine Cove Mine. Mineral Resources were reported within an additional 50m of the 150m bench mark, to a maximum depth of 200m, and are considered to reflect reasonable prospects for economic extraction in the foreseeable future using conventional open-pit mining methods at a gold price of CAD $1,550 per ounce.
Mineral Resources do not have demonstrated economic viability.
This estimate of Mineral Resources may be materially affected by environmental, permitting, legal title, taxation, sociopolitical, marketing, or other relevant issues.

Table 2: Rattling Brook Deposit Sensitivity Report and Comparison with 2008 Historic Mineral Estimate

Zone	Cut-Off (Au g/t)	January 23, 2018 Inferred Mineral Resource Estimate			2008 Historic Inferred Mineral Resource Estimate^			Percent Change
Zone	Cut-Off (Au g/t)	Rounded Tonnes	Au g/t	Rounded Ounces	Rounded Tonnes	Au g/t	Rounded Ounces	Tonnes	Grade (Au g/t)	Ounces
Road Zone	0.5	8,960,000	0.86	248,000	9,880,000	0.76	241,000	-9%	13%	3%
Road Zone	1.0	2,120,000	1.28	87,000	1,400,000	1.22	55,000	51%	5%	58%
Apsy Zone	0.5	6,010,000	1.12	217,000	7,410,000	0.95	226000	-19%	18%	-4%
Apsy Zone	1.0	2,850,000	1.52	139,000	2,760,000	1.30	115,000	3%	17%	21%
Beaver Dam	0.5	1,220,000	1.16	45,000	1,020,000	0.85	28,000	20%	36%	61%
Beaver Dam	1.0	480,000	1.81	28,000	200,000	1.52	10,000	140%	19%	180%
Total	0.5	16,190,000	0.98	510,000	18,310,000	0.84	495,000	-12%	17%	3%
Total	1.0	5,460,000	1.45	255,000	4,360,000	1.28	179,000	25%	13%	42%

The Thor Deposit contains an Indicated Mineral Resource of 83,000 ounces Au (1,817,000 tonnes at an average grade of 1.42 g/t gold) plus an Inferred Mineral Resource of 31,000 ounces Au (847,000 tonnes at an average grade of 1.15 g/t gold) at a cut-off grade of 0.5 g/t gold (Table 3). The Thor Deposit remains open for potential expansion along strike near surface and at depth.

Table 3. Summary of Mineral Resources at the Thor Deposit*
Deposits	Category	Tonnes	Grade	Ounces Gold
*Thor (Current Estimate)	Indicated	1,817,000	1.42	83,000
	Inferred	847,000	1.15	31,000

^The Rattling Brook Resource is an Historic Estimate as defined by NI 43-101 Standards of Disclosure for Mineral Projects. The Historic Estimate is relevant, considered reliable and uses categories appropriate to 43-101 reporting requirements. No other Resource Estimates are known to Anaconda. To verify and upgrade the estimate as a Current Mineral Resource will require further discussions with Qualified Persons whom created the technical report. Qualified Persons working on behalf of Anaconda have not done sufficient work to classify the Historic Estimate as a Current Mineral Resource, as a result Anaconda is not treating the historical estimate as a Current Mineral Resource.

Geology and Mineralization

The Great Northern Project is centered along the Doucer’s Valley Fault, a regional splay of the Long Range Fault. The Doucer’s Valley Fault is a significant geological control on, and host to, several gold deposits, including the Thor Deposit (83,000 ounces Indicated and 31,000 ounces Inferred Resources) and the Rattling Brook Deposit (Historic mineral resource of 495,000 ounces).

Gold mineralization at Great Northern occurs either as disseminated gold, hosted in Precambrian or Ordovician granites or in the unconformably, overlying adjacent volcanic and sedimentary rocks. The sedimentary-hosted gold mineralization is typically higher grade. Rocks underlying each claim block show both styles of mineralization with granite-hosted gold mineralization in the Road and Incinerator Trail Zones and sedimentary-rock-hosted Beaver Dam Zone, or as a combination as in the Apsy Zone. The Thor Deposit is hosted in Precambrian granites and the adjacent Kramer Prospect shows mineralization hosted within the overlying Cambrian quartzites.

Alteration consists of mesothermal style quartz ± iron carbonate ± sulfide veins and stockworks with 2- 5% total sulfides consisting of pyrite, galena, chalcopyrite or sphalerite, and locally show trace amounts of visible gold.

The Project includes several gold prospects and showings, including the Shrik, Stocker, Boot N’ Hammer, 954 Prospects, Incinerator Trail Zone on the Jackson’s Arm Property and the Thor Deposit, Viking, Asgard, Thor’s Cross, Odin’s Triangle and Kramer Prospects on the Viking Property.

Surface grab samples assaying up to 20.2 g/t gold and 1,232 g/t silver at the Boot N’ Hammer Prospect; up to 56.7 g/t gold and 2.75 oz/t silver at the Stocker Prospect; up to 7.2 g/t gold at the Shrik Prospect; and 13.6 g/t gold at the 954 Prospect. The Incinerator Trail Zone has been tested by four reconnaissance-style diamond drill holes in the 1980’s and returned assays of 1.78 g/t gold over 4.0 m (hole RB-35) and 2.30 g/t gold over 4.05 m (hole RB-41).

Trenching along the Viking Trend has returned gold grades ranging between 0.10 and 0.40 g/t over continuously sampled intervals of up to 40 m, and high-grade results including a grab sample from a large boulder of altered granite from the northeast end of the Viking Trend which returned 12.0 g/t gold, and a channel sample grading 9.9 g/t gold and 52 g/t silver over 1.4 m.

Mapping by Anaconda in late 2016 outlined a 1.7 km long by 40 to 400 m wide continuous alteration zone that is host to the main gold prospects at Jackson’s Arm on the east side of the Property. The alteration is controlled by a fault zone that is interpreted to extend immediately to the north along strike beyond the current, known zone of alteration. Anaconda has also discovered similar repeating faults to the east. Consequently, Anaconda believes the potential strike of the alteration system could extend an additional 4 km, both north and east.

The Viking Trend is host to a significant zone of altered and quartz-sulphide veined granodiorite augen gneiss, foliated monzogranite, and deformed mafic rocks up to 45 m thick and extending over a strike length of 3+ km. This northeast trending zone of anomalous gold in soil geochemistry and linear magnetic low is interpreted to be a moderately east-dipping reverse fault which splays into the Doucer’s Valley Fault. Based on the lateral extent of gold in soil and rock mineralization and thickness of the host alteration system, the Viking Trend warrants follow-up exploration drilling.

Exploration

Anaconda Mining conducted a 33-hole, 5,184 m diamond drill program during the summer and fall of 2016 on its Viking Property, with the goal to expand the resource size of the Thor Deposit and define economic gold mineralization in other prospective areas of the property. The 2016 drilling program tested seven major target areas on the Viking Property: the Thor North, Thor South, Thor, Thor’s Cross, Viking, Asgard, and Kramer prospects. Drilling tested a combination of alteration and mineralization exposed at surface, IP (chargeability) and magnetic (vertical gradient lows) geophysical anomalies, and soil geochemical (Au, As) anomalies. At Thor North and Thor South drilling was designed to test for immediate northerly and southerly extension to the gold resource at the Thor Deposit. At Thor’s Cross, drilling tested beneath outcrop exposures of gold mineralization and hydrothermal alteration that were associated with Au-soil anomalies, vertical gradient magnetic lows, and mapped fault systems. Along the Viking Trend drilling tested the exposed, thick (~40 m) alteration zone that was associated with coincident IP chargeability (historic and recent), vertical gradient magnetic lows, and Au-As soil anomalies. Drilling at Asgard tested a known alteration trend and coincident IP chargeability responses, while a single drill hole at the Whiskey Jack occurrence at Kramer undercut known mineralization in hole KR-10-07 and 08 (1.12 g/t gold over 20.05 m and 1.50 g/t gold over 14.4 m, respectively).

Drilling at each of the prospects was successful in intersecting zones of hydrothermal alteration and quartz veining, and low-tenor (generally <3 g/t gold) at each of the prospect areas tested.

Anaconda was successful in extending the strike length of the Thor Deposit and outlined broad zones of mineralization at the Viking Trend along with discovering new mineralization at Thor’s Cross. The Viking Trend and Thor’s Cross also contained localized high-grade intersections. Highlights of the exploration program include:

Gold bearing alteration zones intersected in 21 of 33 drill holes, illustrating a widespread mineralizing system present at the Viking Property.
Extending the Thor Deposit 100 m north along strike, for a total of 650 m of strike length, at shallow depths, as demonstrated by 2.73 g/t Au over 6.0 m in hole VK-16-30, 1.25 g/t gold over 7.0 m in hole VK-16-31, and 1.16 g/t gold over 4.0 m in hole VK-16-132.
Intersecting a 40 to 80 m wide zone of very intense alteration, and broad zones of gold mineralization that characterize the Viking Trend as exemplified by 0.45 g/t gold over 20 m in hole VK-16-151 and 0.37 g/t gold over 16.5 m in an historic drill hole VK-11-125, as well as local high grades as indicated by 7.43 g/t gold over 1.0 m in hole VK-16-155.
Determining that Thor’s Cross is an area at least 100 m in strike length, characterized by a 20 m wide zone of alteration and gold mineralization coincident with a fault structure as demonstrated by 0.78 g/t gold over 10.3 m in hole VK-16-144, 0.42 g/t gold over 8.0 m in hole VK-16-141, and 0.45 g/t gold over 7.9 m in hole VK-16-143, as well as local high grades as indicated by 9.93 g/t gold over 0.3 m in hole VK-16-148.
Follow-up drilling in VK-16-161 at the Whiskey Jack occurrence below drill holes KR-10-07 and 08 intersected 1.21 g/t gold over 2.0 m and 2.55 g/t gold over 3.0 m.
Prospecting at Viking and Kramer uncovered outcrops with 1.37 and 1.38 g/t gold, and float samples with 6.44, 3.44, 1.17, and 1.07 g/t gold. The three soil samples with the highest grade are from the western grid adjacent to the Viking Fault and returned values of 0.79, 0.75, and 0.5 g/t gold respectively. The two highest channel samples were split between the Kramer Main and Kramer East prospects. Respective to the localities listed, they have gold concentrations of 0.84 and 0.89 g/t gold with no continuity.
The IP survey had chargeability anomalies along the Viking Fault and at Thor South. The IP highs were targeted by drilling. The ground magnetics survey at Kramer Main and Kramer East delineated several local magnetic lows. At Kramer East one magnetic low is associated with the Cambrian Unconformity. The only magnetic low targeted by drilling is at Whiskey Jack where it is associated with mineralization discovered by previous work.
Fingerprinting of the key geochemical, geophysical, and structural characteristics of the Thor Deposit and developing new, refined drill targets based on the fingerprint characteristics.

Metallurgical Testing

Preliminary metallurgical test work was completed on the Thor Deposit in 2010 and 2015. The 2010 samples consisted of representative drill core and was conducted by Met-Solve Laboratories Inc. of Burnaby, British Columbia. The work included screen analysis to determine average free gold particle size, preliminary grind size versus recovery studies, and determination of gravity recoverable gold percentage and gold recovery by bottle roll cyanide leaching. Results of the metallurgical testing showed that gold mineralization at the Thor Trend is not refractory and can be readily extracted by gravity or cyanide recovery methods. No significant metallurgical concerns were identified. Results included: gold recovery of 97% by cyanide leaching of a 59-micron grind size product, 70% of the gold is recoverable by gravity concentration methods at a 97-micron grind size, and higher gravity recoveries might be possible through process optimization.

Anaconda Mining conducted metallurgical testing in late 2015, which indicates that ore from the Thor Deposit could be processed at the Pine Cove Mill using current flotation and leach circuit configuration. The results of the study are based on a homogenized sample collected from two diamond drill holes. Bench scale test work, conducted by NB Research and Productivity Council, primarily focused on flotation, cyanide leaching, and grinding to evaluate the response of the Thor Deposit material to the current plant flow sheet for the Pine Cove Mill. In a flotation test, using a grind of 80% passing 150 µm, currently used for Pine Cove ore, the Thor Deposit sample attained 96% Au recovery in 4.4% of the mass at a grade of 35.12 g/t gold in the rougher stage. In a bottle roll cyanidation test, the current Pine Cove Mill, using a regrind size of 80% passing) 20 µm obtained 94.1% gold extraction without requiring accelerating reagents and consumed 1.1 kg/t NaCN compared to 3.6 kg/t for Pine Cove ore. A Bond Ball mill grindability test was performed utilizing a limiting screen size of 150 µm and indicated that the sample has a Bond Ball Work Index value of 18.5 kWh/t.

* The Thor Deposit forms part of the project formerly referred to as the Viking Project. The resources quoted in this press release refer to the technical report: “NI 43-101 Technical Report and Mineral Resource Estimate on the Thor Deposit, Viking Project, White Bay Area, Newfoundland and Labrador, Canada” with an effective date of August 29, 2016 and authored by independent qualified persons David A. Copeland, M.Sc., P.Geo., (an independent consultant), Shane Ebert, Ph.D., P.Geo. (an independent consultant) and Gary Giroux, MASc, P.Eng. (Giroux Consultants Ltd.).

^The Rattling Brook Deposit, including the Apsy, Road and Beaver Dam zones, form part of the project formerly referred to as the Jacksons Arm Gold Project. The Historic Resources quoted refer to the technical report: “TECHNICAL REPORT ON MINERAL RESOURCE ESTIMATE JACKSONS ARM GOLD PROJECT WHITE BAY NEWFOUNDLAND AND LABRADOR Latitude 49^o 53’ 2.65’’North Longitude 56^o 50’7.09’’ West”. With an effective date of April 20th, 2009, and authored by Michael P. Cullen, M.Sc., P.Geo, Chrystal Kennedy, B. Sc., P.Geo. Matthew Harrington, B. Sc. (Hons.), Andrew Hilchey, B.Sc. (Hons.) Mercator Geological Services.

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