Century Mining Secures Term Sheet For A US$25 Million Prepaid Gold Facility And Appoints Union Securities Ltd. To Raise C$20 Million Equity (Source: Canada Newswire)- Century chooses gold-based alternative to previously announced BLAINE, WA, July 30 /CNW/ - Century Mining Corporation (CMM: TSX- V) announced today that the Company is in receipt of a financing term sheet for a US$25 million prepaid gold forward facility from a major international bank with a large gold trading business. The prepaid gold facility is a forward contract to deliver 49,868 ounces of gold over a five-year term. The debt facility has other price participation terms whereby the Company will receive an additional cash payment for gold pricing above US$800 per ounce, up to a maximum of US$950 per ounce. There are no upfront fees, warrants or interest payable to the bank during the term of the facility. The facility is subject to normal course due diligence and standard conditions to closing. Simultaneously, Century has appointed Union Securities as the lead agent to undertake a C$20 million equity issue. The combination of the two financings will provide the necessary cash for the Lamaque Mine to restart in September 2009. It is expected that both facilities will close by early September. In connection with the gold facility the Company is paying a third party finder's fee of US$200,000 and 2,000,000 shares of the Company. In connection with the equity issue, the Company has arranged to pay Union Securities Ltd. a 6% cash fee and 6% in broker warrants. The Company further announced that after extended negotiations and consultations with its legal counsel and investment bankers, Century's Board of Directors decided not to proceed with the proposed $65 million project financing that was originally announced on March 24, 2009. The Board's decision was based on the conclusion that completing this transaction would have subjected the Company and its shareholders to an unacceptable level of risk with regard to the Lamaque project. The Lamaque project is an exceptional gold asset with 1.1 million ounces of gold reserves (7,736,181 tonnes at 4.56 g/t), 1.3 million additional ounces of measured and indicated resources (8,310,074 tonnes at 4.81 g/t), and an additional 3.1 million ounces of inferred resources (19,633,148 tonnes at 4.96 g/t). The deposit hosts potential for several million more ounces. The project is ready to restart upon closing of the financing and will reach full production of approximately 105,000 ounces of gold production per year, at a cash cost of approximately US$423 per ounce of gold produced. The Company also has existing gold production of approximately 18,000 ounces per year at Century's San Juan Gold Mine (Peru), and expects to increase production at this mine over the next three years to about 30,000 ounces of gold per year. The Company has chosen a gold based facility after reviewing several alternatives primarily to eliminate financing risk. Century can service the commitments under this facility from either its Peruvian or Canadian operations. Furthermore, the commitment of only 49,868 ounces of gold production from the more than 2.4 million ounces of reserves and measured and indicated resources and 3.1 million ounces of inferred resources will allow Century's shareholders significant upside in a bull market for gold. The banking institution is very experienced in lending to and trading with international gold mining companies and has conducted project due diligence over the preceding month. After review of the Company's assets the bank has proceeded to issue the term sheet to the Company. Union Securities Ltd. has also completed technical due diligence on the project with an outside consultant and is prepared to broker the equity transaction. The resource evaluations in this press release were prepared by Mr. Ross Burns, P Geo., LG, Vice President of Exploration. This press release was prepared under the guidance of Mr. Burns, who is designated as a Qualified Person under National Instrument 43-101, with the ability and authority to verify the authenticity and validity of the data presented herein. Margaret Kent, President and CEO of Century commented, "In the end, the attractive debt facility the Company was previously offered was a facility that put the Company's key asset at risk. After several months of working on this loan it became evident that we could not modify the lender's loan structure to fit our needs. We will proceed to close and draw down the prepaid forward facility with this very reputable lender and complete the equity raise. Our potential long-term relationship with a bank well established in the gold business will allow the Company to capitalize upon various opportunities that will present themselves in the gold market. This has been a long process, but during this time the Company has continued to work on the Lamaque project and enhance the value of the project. Unfortunately, this has not been reflected in the Company's share price. This mine is shaping up to contain an exceptionally large resource. This financing package will afford our shareholders a tremendous amount of upside and we will start up the mine in September with gold production by January. This is why I recently converted my debenture and exercised my warrants."

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