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    Anvil Mining Reports Third Quarter 2008 Results
    Montréal, Canada: Anvil Mining Limited (TSX, ASX: AVM), (“Anvil” or the “Company”), today announced a net loss for the third quarter ended September 30, 2008 of $17.3 million (-$0.24 per share on a weighted average number of shares basis), compared to net income of $39.1 million ($0.55 per share) for the third quarter of 2007. Concentrate sales
    for the third quarter of 2008 totalled $42.3 million, down 44% from the third quarter of 2007.

    Operating cash flow, before working capital movements, was ($1.0) million, (-$0.01 per share). Year to date net income was $12.6 million ($0.18 per share) on sales of $177.4
    million, compared to net income of $95.5 million ($1.52 per share) on sales of $183.9 million in the first nine months of 2007. Operating cash flow for the first nine months of 2008, before working capital movements, was $59.9 million ($0.84 per share).

    Current Position and Outlook
    In recent months, Anvil and the base metals mining sector generally, have been subjected to a number of significant negative events, most notably a sharp fall in the copper price which declined by approximately 50% from prices seen in September as well as illiquid capital markets. In Anvil’s case, the impact of these events has been compounded by uncertainty regarding the review of mining agreements by the Government of the Democratic Republic
    of Congo (“DRC”), operational difficulties at the Dikulushi underground mine, delay in the commissioning of the Electric-Arc Furnace (“EAF”) at Kinsevere and increases in operating costs.

    The cumulative effects of these events have placed Anvil in a difficult position, particularly in relation to the continued development of the Stage II Solvent Extraction-Electrowinning (“SX-EW”) plant at Kinsevere, for which the total projected cost is $380 million. As at October 31, 2008 approximately $136 million had been spent and approximately $56 million committed, mainly for the purchase of key equipment with long lead times, leaving almost $190 million of expenditure over the next 9 to 12 months to complete the project.

    As at November 12, 2008, Anvil has approximately $90 million in cash and short-term deposits and $38 million in longer term investments, the majority of which do not mature
    within the next three years. Furthermore, in the current environment, there is limited availability of debt finance for mining companies and the Company has concluded that
    raising equity finance is not currently a viable option.

    Management has carefully considered these conditions and developed a strategy for the next six to eighteen months that takes into account the Company’s current position, consensus estimates of copper prices, conservative estimates of production and operating costs and the
    potential to raise debt finance in the event that availability of such finance improves in 2009.
    The key elements of the strategy are:

    • Maintaining a minimum cash balance over this period as required for the Company’s operations;
    • Finalizing the tentative agreements reached with Gécamines and the DRC Government for the Company’s mining properties in DRC;
    • Operating the Dikulushi underground mine and Kinsevere mine at a positive cash flow;
    • Curtailing all but essential capital spending;
    • Reducing exploration costs to essential activities related to the definition of resources at the Dikulushi and Kinsevere mines; and
    • Cutting general and administrative costs to the minimum necessary to support essential operations.
    Central to this strategy, the Company has placed the fabrication and construction works associated with the Kinsevere Stage II SX-EW development on hold until additional finance is available and there is greater certainty in global financial and commodity markets. Design
    work and civil works will continue and are expected to be completed later this year. In order to complete this development and maintain a minimum cash balance throughout the construction and commissioning phase, the Company requires additional funding. The Company is in discussions with a number of possible lenders and preliminary indications are that debt finance could be available in the first half of 2009, assuming satisfactory resolution
    of negotiations with the DRC Government regarding the Company’s mining agreements, which the Company expects to be finalized during the fourth quarter of 2008.

    While the Company currently expects to have financing arranged in time to allow for the recommencement of the Kinsevere Stage II SX-EW development during the third quarter of 2009, with commissioning of the plant in early 2010, there can be no assurance that required finance will be available and that development of the project will re-commence within this timeframe.

    In the event that finance is not available during 2009, the Company believes that with the implementation of the strategy outlined above and using conservative estimates of medium term copper prices, it can operate its Kinsevere Stage I and Dikulushi mines in a profitable manner, with positive cash flow.

    Bill Turner, President and Chief Executive Officer of Anvil, commented, “We believe that Kinsevere is a significant, high grade resource, that has potential to increase in size and that the actions we have taken to negotiate the settlement of terms with Gécamines and the DRC
    Government, to scale back capital expenditures and to reduce operating, general and administrative costs will leave us well positioned to take advantage of any future turn around in copper prices.”
    Key Points for the Third Quarter
    • Financial results for the third quarter 2008 were impacted by several one-off adjustments,
    Provision of $2.6 million for impairment of available-for-sale investments;

    An impairment of $2.9 million in connection with the write down of the value of the Company’s investment in Sub Sahara Resources NL;

    Provisional pricing adjustments of $9.4 million resulting from the sharp fall in the price of copper during the September quarter and post quarter end; and

    A write down of $2.5 million in the value of exploration work carried out in the Philippines.
    • Net copper concentrate sales of $42.3 million, a decrease of 44% compared to the third quarter of 2007.
    • Net loss of $17.3 million (-$0.24 per share), compared to net income of $39.1 million (0.55 per share) in the third quarter of 2007.

    • Cash flows from operating activities, before working capital movements, of -$1.0 million
    (-$0.01 per share), compared to positive cash flow in the third quarter of 2007.

    • Quarterly production of 12,107 tonnes of copper and 189,867 ounces of silver produced
    in concentrate, a decrease of 18% and 69% respectively, compared to the third quarter of 2007.
    • Development of the Dikulushi underground mine using an Avoca cut and fill mining method, on schedule for commencement of full production in the first quarter of 2009.

    • Further development of the Kinsevere Stage II project.
    Bill Turner further commented, “Our third quarter results were negatively impacted by the lower copper and silver production at Dikulushi due to lower production from underground and the inclusion of lower grade stockpile feed. However, Kinsevere performed well with a
    56% increase in net sales due to higher copper production (+29%) through an increase in tonnes processed, higher grades and improved recoveries. At Dikulushi, modifications to the underground development to change the mining method to an Avoca cut-and-fill method are now well underway with full-scale underground mining expected to commence in the first quarter of 2009. Although there is additional capital cost involved in modifying the mining method, ore recovery rates are expected to improve, compared with the previous sub-level caving method.

    Due to recent rapid changes in market conditions and the sharp decline in base metals prices, the third quarter financial results were also impacted by several one-off
    adjustments totalling $17.4 million. This included costs associated with legal and advisory fees related to a private placement which did not proceed as a result of the significant deterioration in market conditions for resources companies.

    The continuing under performance of the Mutoshi Stage I HMS operation from processing lower grade, finer-grained material, together with high mining costs led to the suspension of mining activities at Mutoshi in September. Sufficient stockpiled ore is available to feed the
    Mutoshi Stage I HMS processing plant through to the end of the year and to achieve a 2008 copper production of 8,000 tonnes.”

    While the construction and development of the Kinsevere Stage II 60,000 tonnes per year SX-EW plant has progressed well during the last six months, the project cannot be completed without additional financing. As a result, construction work has been deferred until required
    financing has been obtained, however design and civil works will continue. At the Dikulushi and Kinsevere mines, the Company is reviewing its cost structure and implementing changes to ensure these operations are profitable.


    Kinsevere Stage I
    Open pit mining at the Tshifufia and Tshifufiamashi deposits and processing through the HMS plant continue to operate as expected, with annual 2008 production forecast to be approximately 27,000 tonnes of copper. The first EAF was commissioned in August 2008, but is operating below its design capacity of 12,000 tonnes of copper per year due to a
    combination of design, logistical, and technical factors.
    The Company has identified process flow issues associated with copper metal handling and furnace feed which are currently preventing achievement of design capacity. Trial production using a method to provide for direct casting into a large mould is currently being evaluated.
    Conveyors, bins, screw feeders and weightometers are being upgraded to provide a more automated process. These measures are expected to increase production levels to design capacity in the coming months. Commissioning of the second EAF has been delayed until the first furnace is operating efficiently.


    Feed to the plant continues to be sourced primarily from existing low-grade stockpiles, supplemented by a small amount of development ore, with Dikulushi on track to achieve annual production of 11,000 tonnes of copper.
    The engagement during the second quarter 2008 of Byrnecut Mining International Pty Ltd as the underground mining contractor to coordinate all underground mining activities has resulted in significant improvement in the development of the underground mine with the rate of development consistently ahead of budget.

    Commencement of full scale production (approximately 17,000 tonnes of copper per year)from the underground mine is expected to commence during the first quarter of 2009. In
    order to fully utilise the mill capacity, additional feed will be sourced from the current lowgrade stockpiles which currently amount to 910,000 tonnes grading at 1.2% copper and 27g/t silver.

    Owing to the progressively lower metallurgical recovery from processing finer grained, lower grade material encountered further downstream, mining operations were suspended in September. Feed to the plant continues to be sourced from existing stockpiled ore which is sufficient for the remainder of 2008. While budgeted throughput and feed grade have been achieved, copper recovery at the plant has been disappointing and forecast production for
    2008 has been reduced from 9,000 tonnes of copper to 8,000 tonnes of copper.

    Preliminary studies on a Stage II SX-EW facility for Mutoshi are expected to be completed in the coming months.
    The complete unaudited financial statements together with the related Management’s Discussion and Analysis (MD&A) are available on Anvil’s website at www.anvilmining.com under the heading “Financial Reports”.
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