BLAINE, WASHINGTON--(Marketwire - April 11, 2011) - Century Mining Corporation ("Century" or the "Company") (News - Market indicators) reported its consolidated financial and operating results for the year ended December 31, 2010.

Selected Financial Data

This summary of selected financial data should be read in conjunction with the management's discussion and analysis ("MD&A") of the audited consolidated operating results and financial condition of the Company for the years ended December 31, 2010 and December 31, 2009.

Financial Review

San Juan produced 19,224 ounces of gold in 2010, a 13% increase over 2009. As a result, the increased volumes from the San Juan facility, combined with higher realized gold prices, resulted in gold revenues being higher for the year. Gold revenues, however, have been impacted by the delivery under the Deutsche Bank AG Forward Gold Purchase Agreement of 3,966 ounces of gold, at a price of $561 (US$539) per ounce. As at December 31, 2010 the Company had delivered 5,669 ounces under the terms of the Agreement.

Cash production costs per ounce at San Juan for the year 2010 were $853 per ounce. Although 10% lower than the corresponding period in 2009, additional operating expenses were incurred resulting from the construction of a new cyanide tailings pond facility and an associated shutdown of the mill circuits for a period of time during the last two quarters of 2010. The mill continued operating, although at a lower mill throughput. The CIL plant operated on restricted tonnage in the third quarter. Additionally, transition ore from mining at the Jessica vein system required campaigning through the mill and resulted in a lower recovery.

Mine operations at San Juan earned $6.5 million in the year ended December 31, 2010 from revenues of $22.2 million. Cost of sales was $12.9 million plus $2.8 million in non-cash depreciation, depletion and accretion.

For the year ended December 31, 2010, all operating costs related to the Lamaque project, net of any recoveries, have been deferred until commercial production has been achieved.

In 2010 administrative expenses were $10.4 million and were higher than the corresponding period in 2009. This increase can be attributed to increased salaries and travel costs associated with the ramp-up of the Lamaque project, higher legal and professional costs, directors' and Lamaque operating committee fees, investor relations expenditures, costs associated with the resignation of the Company's President and CEO in July 2010, and a bonus to the interim CEO. Stock based compensation was also higher than the previous year and can be attributed to the additional number of employee stock options being granted during the ramp-up of the Lamaque project.

Net loss for the twelve months ended December 31, 2010 was $12.9 million, or $0.03 per share, compared to a net loss of $4.0 million, or $0.02 per share, for the corresponding period in 2009. In 2010, the net loss was impacted by a number of non-recurring items, including the write down of a VAT claim in Peru upon an assessment by the taxation authority, an impairment loss on mineral property, plant and equipment, and a sales tax assessment pertaining to prior periods.

After net changes to non-cash working capital balances, including the receipt of $9.6 million from the Performance Reserve Account, cash used in operating activities was $0.4 million. During 2010, $14.4 million of cash was spent on purchases of plant and equipment of which $12.4 million was spent at Lamaque, primarily for the refurbishment of the mill, the new crusher and building, and underground mining equipment. A total of $2.0 million was spent in Peru. Capitalized development at the San Juan and Lamaque facilities, including the deferral of operating costs related to the Lamaque project net of any recoveries, amounted to $17.5 million.

In order to fund this capital spending including development, the Company issued $22.7 million of equity instruments, in addition to the $60.75 million raised in the prior year. Subsequent to December 31, 2010, 26,215,973 warrants with a weighted average exercise price of $0.30 were exercised for gross proceeds of $7.86 million.

Outlook

Century is continuing with the ramp-up of production at the Lamaque project in Val d'Or, Québec, and expects to achieve commercial production in the third quarter of 2011. An important part of the Lamaque development is the North Wall, which is expected to be producing ore late in the second quarter. 

The San Juan Mine in Peru continues to be a source of cash and stability for the Company, and Century is expecting production growth in excess of 15% above the approximately 19,000 ounces of gold the mine produced in 2010. San Juan's cash costs per ounce for 2011 are projected at US$720.

The Company is projecting 2011 production of a total of 90,000 – 100,000 ounces of gold, including 70,000 to 75,000 ounces at Lamaque and 20,000 to 25,000 ounces at San Juan. Guidance for 2012 remains at production of 120,000 ounces of gold, as Lamaque will be a full production for the entire year.

Daniel Major, President and CEO, commented, "We are pleased to have finalized the audit of the Company's December 31, 2010 financial statements. We are looking forward to completing the combination with White Tiger Gold Ltd. and to the growth opportunities and financial support that the combination will bring to the operations."

Conference call

Management will host a conference call on Tuesday, April 12, 2011 at 9:00 am, Pacific time (12:00 pm Eastern time) to discuss 2010 results and future developments at the Company's operations in Québec and Peru. Mining analysts, investors and the media are invited to dial toll-free 1-800-475-0441 in Canada and the United States, or 1-517-308-9249 from international locations (normal toll rates do apply) and state the verbal passcode "CenturyMining". Please dial approximately 5 minutes before the start of management's presentation. The presentation will be followed by a question and answer period.

The conference call will be available on the Century Mining website at www.centurymining.com via a downloadable audio file.

About Century Mining Corporation

Century Mining Corporation is a Canadian junior gold producer and holds strategic land positions in Canada, United States and Peru. The Company's strategy is to grow to an intermediate gold producer through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.

On behalf of Century Mining Corporation,

Daniel J. Major,  President & CEO

(1) The Company has included a non-GAAP performance measure, total cash cost per ounce of gold, throughout this document. The Company reports total cash costs on a sales basis. In the gold mining industry, this is a common performance measure but does not have any standardized meaning, and is a non-GAAP measure. The Company follows the recommendations of the Gold Institute standard. The Company believes that, in addition to conventional measures, prepared in accordance with GAAP, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

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", "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 and in other filings made by us with the Securities and Exchange Commission and with Canadian securities regulatory authorities and available at www.sedar.com.

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.