441 Peace Portal Drive Blaine WA Phone: (360) Fax: (360) PRESS RELEASE

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1 441 Peace Portal Drive Blaine WA Phone: (360) Fax: (360) PRESS RELEASE January 11, 2008 CENTURY ANNOUNCES UPDATED NI RESERVES AND TECHNICAL REPORT FOR THE LAMAQUE MINE - Company reports total proven and probable reserves of 1.13 million oz. Additional measured and indicated resources of 624,000 oz. and additional inferred resources totaling 2.8 million oz. Blaine, WA: Century Mining Corporation (CMM: TSX-V) announced today it has received an updated NI compliant reserve and resource report and technical study authored by Mr. Callum Mark, M.Sc., P.Geo. of Clearwater Resources Ltd. (CRL), designated as the Qualified Person, for the Lamaque underground mine located in Val d Or, Quebec. The new reserve and resource estimates and technical report were produced from data compilation that has been ongoing for the last 12 months, underground development and exploration work, and confirmation of actual operating costs incurred since the underground mine commenced operations in May The new technical report for Sigma and Lamaque meets NI disclosure standards. The updated report incorporates current mine plans and operating scenarios for the ramp up of production at the Lamaque operation. We are extremely pleased with the results of the NI technical report, which substantiates the significant reserves and resources remaining at Lamaque. It should be noted that assuming a gold price of US$800 per ounce and using an exchange rate at par US$/C$, the internal rate of return for the Lamaque project is 232%, and the net present value of the mine operation (using discounted cash flow analysis at a discount rate of 5%) is C$297 million. The Lamaque operation will become an important part of the Company s future, providing Century with substantial production in an environment with no political risk, a highly skilled workforce and exceptional additional exploration potential. We believe that the results of this study will substantiate to current shareholders and future investors the value of this asset, said Margaret Kent, President and CEO of Century. Highlights (All amounts expressed in Canadian dollars, except where indicated) Mineral reserves (gold ounces)... 1,134,971 Estimated capital expenditures (year 1)... $9.1 million Estimated capital expenditures (years 2-4)... $54 million Ramp up period (to reach 3,000 tpd) months Break even period... 8 months Total operating cost per tonne* (1,000 tonnes per day production rate)... $70.12 Total operating cost per tonne* (2,000 tonnes per day production rate)... $57.86 Total operating cost per tonne* (3,000 tonnes per day production rate)... $53.14 West Plug... $25.55 Cumulative pretax operating cash flow... $745 million Internal rate of return % Average production rate (tonnes of ore per day at full production)... 3,000 Average life of mine gold grade (grams/tonne) Average life of mine gold production (oz/year) ,000 Mine life years *Includes ongoing exploration expenses

2 The project contains the following mineral inventory: Mineral Inventory Summary Grade Tonnes grams/tonne Gold ounces Proven and probable reserves 7,736, ,134,971 Measured and indicated resources 3,687, ,201 Inferred resources 17,839, ,832,389 Century is currently in the process of ramping up production at the Lamaque underground operation. Development work to refurbish existing infrastructure at Lamaque has been ongoing since May 2007, and will continue through 2012 when the Lamaque #3 winze is expected to be complete. It is the opinion of CRL that the capital cost estimates included in the technical report are of a high confidence level, due to the fact that the majority of the mine infrastructure and the mill are in place and that most of the capital expenditures are for underground mine development and shaft refurbishment. Century s goal is to ramp up production at Lamaque, with the ultimate goal of reaching annual production of 140, ,000 ounces of gold, which is less than the historic production rate of the combined mining operations (the Sigma underground mine and the Lamaque underground mine, which are now referred to collectively as Lamaque). The Company currently has the required technical staff in place to operate the mine. The Company is implementing an aggressive recruiting campaign to add the underground employees necessary to reach these production levels. The recruitment of underground employees is a key factor in reaching the Company s production targets. The Company commenced a comprehensive digital scanning and 3D modeling project in mid-2007 to organize the large volume of historical information from the Sigma and Lamaque mines, which includes approximately 15,000 maps and sections, and about 35,000 drill holes. The output from this project was instrumental in defining the reserves and resources announced today, and, along with future drilling results, will be the basis for future technical reports to continually add to the mineral reserves and resources at Lamaque. History In September 2004, the Company purchased the Sigma-Lamaque Complex, including the Sigma and Lamaque mineral deposits, the 5,000 tonnes per day CIP plant and associated infrastructure, and 12.6 sq. miles of surrounding exploration properties. Commercial open pit production at the Sigma mine began in May 2005 and continued through November 2007, during which time Century produced a total of 158,000 ounces of gold at an average cash cost of US$455 per ounce. The open pit operation was shut down in November 2007 as a result of high production costs. Sigma and Lamaque underground mines The Sigma-Lamaque Complex has produced a total of 9.4 million ounces of gold from open pit and underground operations. The Sigma Mine was in continuous operation as an underground mine from 1937 to the third quarter of Total mine production from Sigma by all previous owners until mine closure was 24.8 million tonnes of ore with an average grade of 5.48 g/t gold for a total of 4.4 million ounces of gold. The adjacent Lamaque underground mine, which is part of the same vein system, operated from 1935 to 1985, with total mine production of approximately 24.2 million tonnes of ore at an average grade of 5.81 g/t Au for a total of 4.55 million ounces of gold. The mine was closed by Teck Corporation in 1985 due to low gold prices and a labor dispute. Century 2

3 commenced an exploration and development program at the Lamaque underground mine in March 2006 and reopened the mine in May Surface and underground infrastructure Existing facilities at the site include a 5,000 tonnes per day processing plant, building complexes that include a warehouse, truck shop, maintenance shop, mine dry, assay laboratory, explosives magazine, 25KV electrical power line, ventilation raise, service raise, ramp access and other facilities. Other work completed to date includes: - Installation of electrical, air and ventilation services to support mining operations of 1,200 tonnes per day. - Procurement of underground mining equipment for mining operations of up to 700 tonnes per day. - Procurement of an underground diamond drill and a surface RC drill for exploration in the camp. - Development of a pit portal and haulage drift between the Sigma Pit and the Lamaque #2 Mine. Mineral reserves and resources The Lamaque deposit is a vein type deposit located in the eastern end of the Abitibi belt. The Lamaque Complex covers an area of about one square mile, and descends to a known depth in excess of 6,000 feet. Mineral reserves and resource estimations have been classified in accordance with NI standards. Ore Reserve Calculation Methodology Century decided in 2007 to incorporate all of the data for both the Sigma and Lamaque mines into a single 3D computer model. The computer model, which was used for the Sigma open pit mine is generally complete for the upper portion of the Sigma Mine. It is expected that a model will be developed that will encompass all of the estimated 15,000 maps and sections and the 35,000 drill holes in the Lamaque and Sigma records. The time for completion is estimated to be the end of The current mineral inventory was produced both by hand calculation and computer modeling. The Cross-Over, North Wall, Road and Sigma West zones were produced using computer inverse distance squared interpolation of grades into a block model. Moil (channel) samples were not used in this calculation, but are available in Century s database. This mineral inventory was compiled from the block model using a 2.5 g/tonne Au cut-off. The modeling assumptions used were refined by reconciliation of the modeled resource to the recovered ounces of gold until a highly accurate model was achieved, based on over 6 million tonnes of ore production from the open pit. The mineral inventory for the Sigma, Lamaque and Lamaque No. 2 mines was calculated by hand using polygons and assay weighted averages from original geologic data including long sections, cross sections, assay plans, stope plans and diamond drill logs. A 2.5 g/tonne Au cut off was used in substantially all cases, however, some selected larger but lower grade blocks have been included due to the lower costs of bulk mining. High assay values were cut to gm (1 ounce/tonne). This cutting procedure was employed historically by both Lamaque and Sigma with great success. Geostatistical analysis of gold sample data undertaken by Placer Dome in the 1990 s confirmed the validity of the cutting factor based on assay populations. The following tables summarize the current NI mineral inventory: 3

4 Lamaque mineral reserve estimate Underground Tonnes Grade Gold Cutoff grams Au/ Ounces grams Au/ tonne tonne Proven Reserves Sigma Below Open Pit 1,440, , Lamaque Main Mine 455, , Lamaque #2 Mine 29, , Sigma North Wall* 447, , Sigma West* 43, , Total Proven Underground Reserves 2,416, ,045 Probable Reserves Sigma Below Open Pit 2,860, , Lamaque Main Mine 119, , Lamaque #2 Mine 73, , Sigma North Wall* 1,357, , Sigma West* 106, , Total Probable Underground Reserves 4,517, ,706 Open Pit Probable Reserves West Plug (Lamaque Crown pillar) 802, ,220 Total Mineral Reserves 7,736, ,134,971 4

5 Lamaque measured and indicated resource estimate Underground Tonnes Grade Gold Cutoff grams Au/ Gold grams Au/ tonne Ounces tonne Measured Resources Cross Over Zone* 600, , Road Zone* 160, , Total Measured 760, ,334 Indicated Resources Cross Over Zone* 2,501, , Road Zone* 424, , Total Indicated Resource 2,926, ,867 Total Measured and Indicated Resources 3,687, ,201 Lamaque inferred resource estimate Underground Tonnes Grade Gold Cutoff grams Au/ Gold grams Au/ tonne Ounces tonne Inferred Resources Sigma Below Open Pit 5,934, ,022, Lamaque Main Mine 165, , Lamaque #2 Mine 47, , Cross Over* 7,179, ,126, Sigma North Wall* 2,830, , Road Zone* 952, , Sigma West* 456, , Total Underground Inferred Resources 17,566, ,811,446 Open Pit Inferred West Plug 273, ,943 Total Inferred Resources 17,839, ,832,389 * The Vulcan model used in this calculation is based on information originally assembled by Placer Dome, refined by McWatters and further refined by Century. The model was originally designed for open pit mining of the Sigma open pit and as such requires refinement to be applied to selective underground mining. On examination Century has found there may be small omissions of old stoping, moils (channel samples) and diamond drill holes. Verification of data started in 2007 and results to date indicate that the omissions are minor and should not materially affect the reserve/resource estimate. Full verification will be completed in conjunction with the completion of the full 3D model in late

6 Underground mine operations The underground operation will be ramped up to sustain an ultimate daily production rate of 3,000 tonnes of ore, 7 days a week, 360 days a year. Typical mining methods planned include conventional mining using jacklegs and slushers for flat stopes and long hole stoping with jumbo drifting on top and bottom sills, inch vertical holes, development of open end slots and end blasting. Ore will be transported to surface through one of 3 planned ramps into the open pit or hoisted to surface using the #2 shaft when refurbished. Run-of-mine ore will be stockpiled and reloaded on surface trucks and hauled directly to the mill. Open pit mine operations The West Plug deposit is scheduled for pre-stripping and mining using conventional open pit equipment. The Company has extensive open pit experience from mining the open pit at Sigma. Good ore control is expected since all mineralization is in structures and there has been no previous underground mining in the open pit shell. Planned production is to mine 11,500 tonnes per day of ore and waste and total operations are expected to be completed over 18 months. Ore will be stockpiled and used to supplement mill tonnage. Ore processing Processing of ore will be performed at existing facilities, which contain conventional rod mill and ball mill grinding, gravity concentration of coarse gold and a standard aerated leach cyanidation and carbon-in-pulp circuit. The permanent fine crushing circuit is scheduled for installation in 2009, which will support the plant maximum capacity of 3,400 tonnes per day at 96% recovery. The existing crushing circuit will be replaced by a standard three stage crushing circuit, which is currently being engineered. In the interim (6 12 months) a portable crushing circuit will be leased to satisfy the crushing requirements with the crushed product fed directly to the rod mill. Environmental compliance The planned berm raises at the tailings storage facility are rated for 623,000 m³ of solid storage. The long-term storage design is under review given the reduced tonnage. In addition to the existing environmental permits for mining 5,000 tonnes per day from open pit and 400 tonnes per day from the Lamaque underground, Century has applied for permits to expand Lamaque production to an immediate 1,200 tonnes per day with dewatering to maintain the current underground water elevation, and 2,000 tonnes per day from the Sigma underground mine which includes portal access to the North Wall and Sigma West areas from the Sigma pit. Century has initiated permitting for dewatering to access lower levels at Sigma and Lamaque, which is pending ministry guidance on possible discharge locations. The Company will need to obtain additional permits and modifications for the West Plug and the ongoing proposed underground mining plan, milling rates and tailings management. 6

7 Project schedule The project schedule estimates that production will be approximately 700 tonnes per day in June 2008, and steadily increase to 1,800 tonnes per day in the second quarter of 2009, and 3,000 tonnes per day in the second quarter of Ore production (tonnes/day) Lamaque underground West Plug open pit 5,000 4,000 3,000 2,000 1,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q Q4 Capital costs on a yearly basis for production ramp up to 3,000 tonnes per day CAPITAL EXPENSES TOTAL CAPITAL COST Mine Development Shaft - Access, Refurbishment & Facilities $ 1,351,968 $ 2,122,790 $ 10,727,045 $ 9,194,336 $ 23,396,139 West Plug $ 400,000 $ 4,705,000 $ 2,614,000 $ - $ 7,719,000 Underground Mine Development $ 2,720,000 $ 2,720,000 $ 2,720,000 $ 2,720,000 $ 10,880,000 Mine equipment $ 1,839,238 $ 1,364,710 $ 1,364,710 $ 1,364,710 $ 5,933,368 Plant & Infrastructure $ - $ - $ - $ - $ - Mill Construction $ 144,000 $ 1,300,000 $ - $ - $ 1,444,000 Plant ancillary $ 1,646,500 $ 1,399,000 $ 1,171,000 $ 1,031,000 $ 5,247,500 Total Direct Costs $ 8,101,705 $ 13,611,500 $ 18,596,755 $ 14,310,046 $ 54,620,007 E.P.C.M. $ - $ 100,000 $ 166,393 $ 182,000 $ 448,393 Sustaining Capital $ 200,000 $ 800,000 $ 800,000 $ 200,000 $ 2,000,000 Owners Cost $ - $ 110,000 $ 183,032 $ 200,200 $ 493,232 Total Indirect Direct Costs $ 200,000 $ 1,010,000 $ 1,149,426 $ 582,200 $ 2,941,626 Contingency (10%) Continenecy $ 830,171 $ 1,462,150 $ 1,974,618 $ 1,489,225 $ 5,756,163 TOTAL $ 9,131,876 $ 16,083,650 $ 21,720,798 $ 16,381,471 $ 63,317,795 Less Operating Leases $ 2,729,738 $ 5,793,710 $ 4,824,710 $ 2,395,710 $ 15,743,868 NET CAPITAL $ 6,402,138 $ 10,289,940 $ 16,896,089 $ 13,985,761 $ 47,573,928 Sustaining capital from 2012 and after SUSTAINING CAPITAL 2012 FORWARD Sustaining Capital $ 38,385,533 7

8 Capital costs are primarily for re-establishment of past underground infrastructure, in-pit portal access and mill conversion to a standard rod mill/ball mill circuit. Shaft development includes cut and fill from existing pit topography, the installation of ground control to provide safe access to the #2 shaft collar and site preparation for surfaces suitable for a head frame and service structures. Shaft refurbishment includes clearing rock and debris, re-timbering, loading pocket rehabilitation and installing a head frame and hoist system. Refurbishing #3 Winze includes rehabilitation of ground control (in the hoist room), equipment, ore transfers and loading pocket. Other capital expenditures include ongoing mine development, underground and surface mobile equipment, tailings lift construction, dewatering and water management, and mill conversion to a rod mill/ball mill circuit. Direct cost estimates for the shaft rehabilitation are derived from recent vendor estimates and actual operating costs incurred to date. Quotes have been received for the necessary major mine and process equipment, and costs for further underground development are based on actual productivity achieved on site. It is anticipated that all underground development will be performed by Century s own staff. Mining operations will be performed by Century using a combination of existing and leased equipment, and therefore no capital investment has been planned for major mining equipment. Operating costs Operating costs at various production levels Production level 1000 tpd 2000 tpd 3000 tpd West Plug $/TONNE $/TONNE $/TONNE $/TONNE Mining (excluding Fuel) $ $ $ $ Milling - Processing $ $ $ 9.31 $ 8.00 Services (excluding fuel) $ 5.57 $ 4.95 $ 5.06 G&A (inc equip finance) $ 8.49 $ 7.26 $ 7.50 Reclamation $ 0.50 $ 0.50 $ 0.50 Fuel (mobile equipment) $ 1.80 $ 2.18 $ 2.52 $ 2.50 Refining & Transportation $ 0.09 $ 0.09 $ 0.09 $ 0.05 Exploration $ 1.50 $ 1.50 $ 1.50 TOTAL $ $ $ $ Operating costs per tonne have been estimated to cover three production levels (1,000 tpd, 2,000 tpd and 3,000 tpd) as the operation is ramped up over the next 3 years. Operating costs have also been established for the West Plug operation. These benchmark costs were used as the basis to calculate operating costs per year, adjusted for the daily tonnage estimates. Operating costs have been derived from actual operating costs experienced to date and projected operating costs are based on future mine plans and equivalent industry costs. Open pit costs are derived from operating experience at the Sigma pit. Costs assume that the US$/C$ remain at par and that oil tracks at US$95.00 per barrel. 8

9 Economic model A simple economic model has been created and reviewed based on mineral reserves for the Lamaque mine and the proposed production schedule. This includes a scenario to quickly advance the project to a break even production stage (estimated Fall 2008), and ultimately to a production rate of 3,000 tonnes per day (2011). Assumptions: gold price of US$800/oz. and US$/C$ exchange rate of 1.00, 12 year initial mine life Tonnes per day milled (avg. over mine life) 2,800 Initial capital (C$) (year 1) $9.1 million Average gold grade (g/t) 4.38 Cumulative pretax operating $745 million cash flow (C$) Average mill recovery (%) 96% 0% (C$) $430 million Average gold production (oz Au/yr.) 146,000 5% (C$) $297 million Average cash cost over mine life (US$/oz) $400-$425 IRR (%) 232% Notes: 1. The above economic model assumes 100% debt financing, at an annual interest rate of 8.5%. 2. The minimum payback period is calculated by a full excess cash flow sweep. The economics of the project are mainly sensitive to fluctuations in ore grade and dilution. Additional potential Century owns exploration properties totaling 12.6 square kilometers proximal to the Sigma-Lamaque mine of which 7.8 square kilometers are contiguous with the east side of the mine (see image 2). The remaining exploration area includes two mines, the Aumaque mine and the Sigma II mine. The properties contiguous with the mine have a number of gold showings and high-grade gold intersections, and the Aumaque underground mine (existing shaft), which was last examined in 1988, has a small historical resource associated with it. The Sigma II mine, located south of the Louvicourt mine, was mined by open pit and the ore was trucked to the Sigma mill for processing. Century will re-evaluate the future potential of Sigma II, based on favorable trends in metals prices. Sigma II is a potential source of open pit and/or underground ore for the Sigma-Lamaque mill. Additional information Four images are attached showing existing underground and surface operations. A full NI technical report will be posted on SEDAR and the Company s website within 45 days following this press release. Century Mining Limited (TSXV:CMM) retained Clearwater Resources Ltd. (CRL) in September 2007 to prepare an independent NI compliant technical report on the Sigma-Lamaque Mine. CLR is an exploration and mining consultancy providing consulting services to the mining industry. The report was prepared to NI standards by Callum Mark M.Sc., P.Geo., who is designated as a Qualified Person, and is based in part on the author s first-hand experience with both the Lamaque and Sigma operations over a 20 year period during the 1970 s and subsequent years. Mr. Mark was Chief Geologist for the Lamaque Mining Company Ltd., a wholly owned subsidiary of Teck Corporation from 1972 through

10 Further involvement with the Sigma Mine occurred from 1977 through 1979 when the author was the Chief Geologist for Campbell Red Lake Mines Ltd. a sister company within the Dome Mines Group. The relationship with Lamaque and Sigma continued through the 1980 s in collaboration with various colleagues and consultants providing services to Teck Corporation and Placer Dome. The author had no involvement after the property was sold by Placer Dome. This press release was prepared under the guidance of Mr. Ross Burns, P Geo., LG, Vice President of Exploration, who is designated as a Qualified Person with the ability and authority to verify the authenticity and validity of the data. Investor conference call Management will host a conference call on Monday, January 14 at 10:00 a.m. Pacific time (1:00 p.m. Eastern time) to discuss the details of this press release and future developments at its operations in Québec and Peru. Mining analysts, investors and the media are invited to phone , or if outside Canada and the U.S.A., followed by the pass code approximately 5 minutes before the start of management s presentation. The presentation will be followed by a question and answer period. A replay of the conference call can be heard through Monday, January 21 by dialing , or from outside North America About Century Mining Corporation Century Mining Corporation is an emerging mid-tier gold producer that is aggressively acquiring producing mines and exploration properties in Peru. The Company owns and produces gold at the Lamaque mine in Québec that historically has produced over 9.4 million ounces of gold. In Peru, Century wholly-owned subsidiaries own an 82.6% interest in the San Juan Mine where the Company accounts for 100% of gold production. Century subsidiaries have also recently acquired Rosario de Belen where it accounts for 100% of both gold and silver production. Century s growth strategy is to acquire gold producing assets in South America that will substantially reduce the Company s consolidated total cash cost of production and where there is exceptional exploration potential to expand production at these mines. Margaret M. Kent Chairman, President & CEO For further investor information, please contact: Brent Jones, Manager of Investor Relations bjones@centurymining.com Phone: (877) or (360) Fax: (360) Website: The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this press release. Caution Concerning Forward-Looking Information This press release contains forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws. We use words such as may, 10

11 will, should, anticipate, plan, expect, believe, estimate and similar terminology to identify forward-looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability to the Company of suitable financing alternatives; fluctuations in gold and other commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks arising from our South American activities; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management s Discussion and Analysis included in this Annual Report, in our Annual Information Form and in other filings made by us with the Securities and Exchange Commission and with Canadian securities regulatory authorities and available at While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward-looking statements and forward-looking information. 11

12 Image 1: Plan view of open pit and Lamaque Underground Mine Open pit N 3,400 tpd Mill Sigma West Haulage Drift Lamaque Underground No. 2 Mine Image 2: Century properties location map 12

13 Image 3: Sigma-Lamaque Mill Image 4: Lamaque Underground Mine No. 7 Shaft Headframe at Main Mine and No. 2 Mine Decline Portal 13

14 Image 5: Lamaque haulage drift into bottom of Sigma open pit 14