quarterly result, page-2

Anvil Mining Ltd - Record Year for Production, Revenues, Net Income and Cash Flows

26 February 2008
Source:Market News Publishing

ANVIL MINING LTD ("AVM-T") - Record Year for Production, Revenues, Net Income and Cash Flows Anvil Mining Limited ("Anvil" or the "Company") and including its subsidiaries is pleased to announce its unaudited results for the year ended December 31, 2007. The Company recorded consolidated net income of $117.2 million ($1.81 per share on a weighted average number of shares basis) for the year ended December 31, 2007, compared to $82.2 million ($1.65 per share) for 2006. Concentrate sales also reached a yearly record of $263.2 million, compared to $175.4 million for 2006. Operating cash flow before working capital movements was a record $166.3 million ($2.57 per share), compared to $102.0 million ($1.80 per share) in 2006. Consolidated copper and silver production was also a yearly record of 47,633 tonnes of copper and 2,451,269 ounces of silver contained in concentrates. Audited results are expected to be released later today.

2007 Highlights- Year ended December 31.

- Record annual production of 47,633 tonnes of copper and 2,451,269 ounces of silver contained in concentrates.

- Record annual revenues from copper-silver and copper concentrate sales of $263.2 million, up 50% compared to 2006.

- Record annual net income of $117.2 million ($1.81 per share), up by 43% compared to 2006.

- Record annual operating profit (after depreciation and amortization) of $160.3 million, up by 50% compared to 2006.

- Record annual cash flows from operating activities (before working capital movements) of $166.3 million ($2.57 per share) up by 63% compared to 2006.

- Underground ore production at Dikulushi commenced in the fourth quarter of 2007

- Commissioning of the Kinsevere Stage I Heavy Media Separation plant which reached design capacity of 500,000 tonnes of ore per year last July.

- Increase of 34% in Measured and Indicated Resources and a subsequent increase of 32% in Proven and Probable Mineral Reserves at Kinsevere.

- Cash and cash equivalents at year end of $279.9 million ($3.94 per share).

Highlights for the fourth quarter ended December 31, 2007

- Record quarterly production of 16,878 tonnes of copper and 717,402 ounces of silver contained in concentrates.

- Record quarterly revenues from copper-silver and copper concentrates sales of $79.3 million, an increase of 86%, compared to the corresponding quarter of 2006.

- Net income of $21.7 million ($0.31 per share), an increase of 2%, compared to the corresponding quarter of 2006.

- Operating profit (after depreciation and amortization) of $44.2 million, an increase of 71.3% compared to the corresponding quarter of 2006.

- Record quarterly cash flows from operating activities (before working capital movements) of $47.2 million ($0.67 per share), an increase of 98% compared to the corresponding quarter of 2006.

- Completion of transition to underground mining at Dikulushi.

- Completion of Kinsevere Stage II updated feasibility study on 60,000 tpa Solvent Extraction and Electrowinning ("SX-EW") expansion following significant increases in the Mineral Reserves and Resources.

Bill Turner, President and Chief Executive Officer of Anvil, commented, "The year 2007 was another exceptional year with annual records set in production, sales of our copper and silver concentrates, operating profit, net income and operating cash flows before working capital movements. Our net income reached $117.2 million or $1.81 per share, the highest level in the history of the Company. The increase in copper production is mainly due to the commissioning of the Kinsevere Stage I in June, our third mine in the DRC. Our strong financial performance was due to continued above-target operational performance at the Dikulushi mine and increases in realized copper and silver prices. Now with three mines in production, the Company expects to produce more than 55,000 tonnes of copper and 1.3 million ounces of silver in 2008 with a mid-term objective to double this level of production in 2010, at which time more than 55% of the copper production will be in the form of pure LME Grade A copper cathodes."

Progress on Kinsevere Stage I & II

In early February 2008, the Company announced an updated feasibility study for the Stage II 60,000 tonnes per annum capacity SX-EW expansion at Kinsevere, following a 34% increase in Measured and Indicated Resources and a subsequent 32% increase in Proven and Probable Mineral Reserves. As at December 31, 2007, the total resource base is estimated at 1.8 million tonnes of contained copper. Following the April 2007 study, several enhancements have been made to the Stage II SX-EW processing flow-sheet to include "milling in raffinate" and "direct tailings disposal" resulting in lower acid and lime consumption. While their combined effects result in an increase in the SX-EW capital cost to $298 million, overall processing costs are reduced by 4 cents per pound of copper, which improves the internal rate of return of the project. The results of the economic analysis are very robust with an internal rate of return of nearly 40%, reflecting the quality of the Kinsevere deposits. A drilling program of 25,000 metres is planned in 2008 to further define resources on the lateral extensions of the oxide deposits and the depth in the sulphide zone. A new NI-43-101 Technical Report is expected to be lodged on the SEDAR website at www.sedar.com [http://www.sedar.com] in the coming weeks. The new 27 km 120KV transmission line which connects the Kinsevere mine to the DRC national hydroelectric grid is now completed and the two Electrical Arc Furnaces ("EAF") are expected to commence commissioning late in the first quarter of 2008. The EAFs will produce a "black copper" ingot grading approximately 93% copper with the copper recovery through the EAFs expected to be 92%. The 2008 production target for Kinsevere is established at 26,000 tonnes of copper, over 60% of which is expected to be in the form of black copper ingots.

Update regarding the DRC Government review of mining agreements

In February 2008, Anvil received letters from the Minister of Mines for the 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 Dikulushi, Kinsevere and Kulu mining properties. The letters from the Minister include a statement of terms upon which the Government proposes discussions be based to balance the partnership between the DRC and Anvil. 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 submit a response to the letters received from the Minister of Mines in respect of all three of its properties in the DRC within the Government's timeframe and is seeking further discussions with the Minister of Mines.

The complete financial statements together with the related Management's Discussion and Analysis of Financial Conditions and Results of Operations are available on Anvil's website at www.anvilmining.com [http://www.anvilmining.com] under the heading Inves tor Relations/Financial Reports.

Fourth Quarter and Year-End 2007 Financial Results Conference Call Reminder

A conference call will be held at 4:00 p.m. (EST - North America, Toronto time) on Thursday 28, 2008 coinciding with 6:00 a.m. (AWST - Australia, Perth time) on Friday, February 29, 2008, to discuss the results announced in this news release. Please note that the conference call was originally scheduled for February 26 at 9:00 a.m. and the Company has changed the date and time.