Anvil Mining LimitedGovernment Review of Kinsevere and Kulu...

Anvil Mining Limited
Government Review of Kinsevere and Kulu Mining Rights
Montréal, Canada: Anvil Mining Limited (TSX, ASX: AVM) (“Anvil” or the “Company”)announces that it has now received letters from the Minister of Mines for the Democratic Republic of the Congo (“DRC”) notifying Anvil of the Government’s position as a consequence of the
review by the DRC Government of the mining rights which Anvil’s subsidiaries hold in respect of Anvil’s Kinsevere and Kulu mining properties.

On February 19, Anvil announced the details of the
Government’s position with respect to Anvil’s Dikulushi property. Anvil has majority interests in and operates the Dikulushi copper-silver mine, the Kinsevere copper mine and the Kulu copper tailings operation, all in the Katanga Province of the DRC.

The office of the Minister of Mines has also advised Anvil that the deadline for responding to the Government’s position has been extended to February 27, 2008. Anvil will shortly submit a response to the letters received from the Minister of Mines in respect of all three of its properties in the DRC and will seek discussions with the Minister of Mines. Further details of the letters received in respect of Kinsevere and Kulu are set forth below.

Kinsevere Mine
The mining rights to the Kinsevere project tenement areas are currently held through a 25 year mining lease agreement between La Générale des Carrières et des Mines (“Gécamines”), a Congolese para-statal entity that is the mining title holder, and Mining Company Katanga sprl
(“MCK”). MCK is in the process of assigning the lease to AMCK Mining sprl, which is a joint venture company owned as to 95% by Anvil and 5% by MCK.

The Minister’s position is that the existing contractual arrangements with Gécamines have financial terms that ought to be renegotiated. The specific requirements stated by the Minister are that:
- the cash bonus paid to Gécamines should be increased to $150 million,
- the ceiling on rent paid of a maximum of $70 per tonne of copper equivalent should be
removed and the contract altered to reflect changes in metal prices,
- the term of the contract with Gécamines (which extends for 25 years) should coincide with the term of the underlying mineral tenures, which have an initial term that expires
on 3 April 2009 and which are renewable thereafter for successive periods of fifteen
years, and

- AMCK should submit to the Government a plan for social programs that will have a visible impact.

Pursuant to the existing contracts in relation to the Kinsevere Mine, a lease premium of $1 million has been paid by Anvil and there is no provision for additional payments. Rent is payable on a sliding scale that varies with the price of copper and is between $35 and $70 per tonne of copper equivalent, with the maximum rent payable being reached at a copper price of $4,000 per tonne. In
addition, a 2% net smelter return royalty is payable to the DRC Government pursuant to the Mining Code.

Kulu Mine
The Kulu copper tailings operation is an incorporated exploration and mining joint venture between a subsidiary of Anvil, Entreprise Minière de Kolwezi (“EMIKO”), and Gécamines. The mineral rights to the Kulu operation are held under two principal tenements, both of which were originally
in the name of Gécamines and were transferred to Société Minière de Kolwezi sprl (“SMK”) in 2005 and 2006. EMIKO holds 80% of the shares of SMK and Gécamines holds the remaining 20%.

The Minister’s position is that the interest of Gécamines in SMK is unfairly low, in part due to the absence of a feasibility study, and that the joint venture must therefore be renegotiated. The specific requirements stated by the Minister are that:

- a feasibility study be submitted which identifies the actual contributions of the parties in order to establish a fair balance of shares in SMK as between EMIKO and Gécamines,
- a royalty of at least 2% of gross revenue be provided in favour of Gécamines,
- Gécamines must be actively involved in the day to day management of SMK, and
- SMK should submit to the Government a plan for social programs that will have a visible impact.

A feasibility study was submitted to Gécamines in 2005. The current agreements with Gécamines provide for a 2% net smelter return royalty to be paid to Gécamines. In addition, a 2% net smelter return royalty is payable to the DRC Government pursuant to the Mining Code. The agreements
governing SMK provide that Gécamines has the right to appoint three of the eight members of the management board of SMK and EMIKO has the right to appoint the other five members. The President of the management board is to be chosen from the members appointed by EMIKO and the
Vice President of the management board is to be chosen from the members appointed by Gecamines. In addition, the position of General Manager shall be filled by a candidate presented by EMIKO and the position of Assistant General Manger shall be filled by a candidate presented by
Gécamines.

Conference call
A conference call will be held at 8:00 a.m. (EST - North America, Toronto time) on Thursday,
February 21, coinciding with 10:00 pm (AWST - Australia, Perth time) on the same day, to discuss the matters referred to in this news release and Anvil’s news release of February 19.