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Century Mining to Use Private Placement Proceedings to Develop Lamaque Gold Mine in Quebec

Century Mining Corporation (TSX VENTURE:CMM) has announced that the Company has entered into an agreement with a syndicate of agents co-led by Haywood Securities Inc. and Byron Capital Markets, and including Union Securities Ltd. pursuant to which the Agents have agreed to offer for sale, on a best efforts private placement basis, up to 12,820,513 units of the Company at a price per Unit of C$0.39 for gross proceeds to the Company of up to C$5,000,000.

Each Unit will consist of one common share in the capital of the Company (a "Common Share") and one half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one Common Share for a period of 18 months following the closing of the Offering at an exercise price of C$0.60 per Common Share.

The Company has granted the Agents an option, exercisable in whole or in part at any time up to the closing of the Offering, to offer for sale up to an additional 5,128,206 Units at the Unit Price for additional gross proceeds to the Company of up to C$2,000,000.

The Company intends to use the net proceeds of the Offering to advance the Lamaque gold mine in Val d'Or, Québec through the final commissioning stages of the operation. The proceeds will assist in funding the underground development of the Lamaque Flats, the Bedard Dyke and the North Wall ore production zones. Currently the mine is producing at approximately 1,000 tonnes per day (TPD), and with the commencement of mining in the North Wall zone in Q1/2011, daily production is expected to increase to approximately 1,500 TPD and reach a final steady state production rate of 2,100 TPD by Q4/2011. The 2011 production guidance remains intact at 80,000 to 90,000 ounces gold, is forecasted to become cash flow positive in Q1/2011, and to reach commercial production in the first half of 2011.

The Company has agreed to pay the Agents a cash commission equal to 6.5% of the gross proceeds raised in connection with the Offering and to issue compensation options entitling the Agents to purchase such number of Units that is equal to 6.5% of the aggregate number of Units sold pursuant to the Offering, at an exercise price equal to the Unit Price, for a period of 18 months following the closing of the Offering.

The Offering is subject to receipt of all necessary corporate and regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued in connection with the Offering will be subject to a statutory hold period of four months plus one day from the date of issuance in accordance with applicable securities legislation.

The securities being offered hereby have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state or province in which such offer, solicitation or sale would be unlawful.

Source: Century Mining Corporation

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