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The Company's exploration initiatives in the Quarter focused on condemnation diamond-drilling north of the Pine Cove Mine and compilation of historic information on the Deer Cove and Stog'er Tight properties in preparation for future drilling activities. For the year to date, exploration initiatives included drilling the Romeo and Juliet prospect, an airborne survey across the entire project and structural interpretations in and around the Pine Cove pit. Approximately $685,000 was spent at the Pine Cove Project on exploration for the nine months ended February 28, 2014. In November 2013, the Company completed two three-year option agreements to acquire a 100% undivided interest in the Deer Cove and Stog'er Tight gold projects, which are adjacent to the Pine Cove Project and are key components in its regional exploration program.

Highlights for the nine months ended February 28, 2014

BALANCE SHEET:

• As at February 28, 2014, the Company had cash and cash equivalents of $1,959,445 and net working capital of $1,774,458.

OPERATING PERFORMANCE:

• For the three months ended February 28, 2014, the Company sold 2,832 ounces of gold and generated $3,865,210 in revenue at an average sales price of $1,365 per ounce.

• For the nine months ended February 28, 2014, the Company sold 10,780 ounces of gold and generated $14,896,439 in revenue at an average sales price of $1,382 per ounce.

• Cash operating cost per ounce sold at the Pine Cove Project for the three and nine months ended February 28, 2014 was $1,329 and $1,034 per ounce, respectively.

• Total cash cost per ounce sold, including corporate administration, capital expenditures and exploration costs for the three and nine months ended February 28, 2014 was $1,679 and $1,345 per ounce, respectively.

• Milestone payments and royalty revenue from Chilean iron ore properties were $3,823,908 for the nine months ended February 28, 2014. Included in the second quarter is the receipt of a US$1 million commercial production milestone payment and the recognition of an additional US$2 million payment due no later than May 20, 2015. The Company has also received $518,819 in royalty payments on a year to date basis.

• At the Pine Cove Project, earnings before interest, depreciation and depletion and share based compensation ("EBITDA") for the three and nine months ended February 28, 2014 was $102,610 and $3,746,033, respectively.

• On a consolidated basis, EBITDA for the three and nine months ended February 28, 2014 was $146,078 and $6,071,593, respectively.

• Net loss for the three months ended February 28, 2014 was $281,136 or ($0.002) per basic and fully diluted share, respectively.

• Net income for the nine months ended February 28, 2014 was $2,962,098 or $0.016 per basic and diluted share, respectively.

• Purchase of property, mill and equipment for the nine months ended February 28, 2014 was $1,163,008. Key items include crusher upgrades of $214,000, waste dump development of $140,000, in-pit construction of $134,000, mining software of $88,000 and mill laboratory additions of $54,000.

• Additions to production stripping assets for the nine months ended February 28, 2014 were $362,361; depreciation of production stripping assets during the same period was $368,352.

Operations overview

During the three months ended February 28, 2014, the gold sales volume of 2,832 ounces represented a 9% decrease over the same period in fiscal 2013. Average sales price for the Quarter was $1,365 per ounce versus $1,656 per ounce for the second quarter of fiscal 2013, an 18% decrease. As a result of the lower sales volume and a lower selling price, gross revenue during the three months ended February 28, 2014, of $3,865,219, was lower than the same period in the previous fiscal year by $1,272.059 or 25%.

The following table summarizes the key operating metrics for fiscal 2014 and 2013:

Milling operations

The Pine Cove mill operated for 76 days during the Quarter at 84% availability. The mill processed 63,123 dry tonnes of ore (834 tonnes per operating day) at an average head grade of 1.79 grams per tonne ("g/t") and an overall mill recovery of 83%. Operating performance in the third quarter was hampered by the extreme cold and excessive snowfall that began in late November and lasted into early March. The operating difficulties were compounded by the lack of adequate, consistent power supply, which caused the Pine Cove team to conservatively run the ball mill at a lower throughput rate for most of the Quarter to compensate for these external issues. By the end of January, the Company had made adjustments to overcome the power supply problems. Despite the interruption, the Company processed almost exactly the same amount of tonnes in the Quarter as it did in the similar period in fiscal 2013.

Operating performance in the nine months ended February 28, 2014 is highlighted by increased mill availability of 88% (86% for the previous nine month period) and increased throughput of 926 tonnes per operating day (858 tonnes per day for the previous nine month period). This despite the operating challenges of the Quarter. Head grade was slightly lower at 1.83 grams per tonne ("g/t") (1.93 g/t for the previous period) and an overall mill recovery of 83%.

Mining operations

Mining activities operated for a total of 57 days during the Quarter and excavated a total of 388,110 tonnes of ore and waste. Ore production totaled 78,043 tonnes, while waste was 310,067 tonnes for a strip ratio of 4.0:1. Due to harsh winter conditions and mill slowdown, mine operations were curtailed during January and February to an average of 4 days a week and with a reduced truck fleet to keep mining rate synchronized with mill requirements.

Mining activities operated for a total of 183 days during the nine months ended February 28, 2014 and excavated a total of 1,459,191 tonnes of ore and waste. Ore production totaled 236,765 tonnes, while waste was 1,222,426 tonnes for a strip ratio of 5.2:1.

Exploration

The exploration program for the three months ended February 28, 2014 focused on the following objectives:

1) Follow-up work from the fiscal 2013 winter drill program around the Pine Cove pit;

2) A review and compilation of historic data from the Deer Cove and Stog'er Tight projects in advance of diamond drilling;

3) Follow-up drilling at the Balcony Zone of the Romeo and Juliet prospect.

1. Pine Cove Down-Dip and Western Extension Exploration: In January 2014, four holes totaling approximately 600m were drilled as part of a condemnation drill program north of the Pine Cove pit area. Three holes totaling 300m drilled mainly to the northwest of the pit returned no significant mineralization or alteration. PC-14-224 drilled 95m northwest of PC-11-181 intersected several zones of Pine Cove style alteration and pyrite mineralization. The best interval assayed 3.06 g/t gold over 5.54 meters (including 5.75 g/t gold over 1.97 meters) beginning at a vertical depth of approximately 207 meters. (see press release March 3, 2014). This alteration is interpreted to be a part of the down-dip extension to the Pine Cove deposit.

Historic drilling, immediately north of the Pine Cove deposit, indicated potential for additional gold mineralization down-dip of the deposit. In 2011 and 2012, drilling was completed approximately 100 metres north of the mine. Drill hole PC-11-181 intersected 2.50 g/t gold over 40.8 metres and PC-12-189 intersected 32 metres grading 0.848 grams per tonne. A review of the historic data indicated the need for additional drilling to test both the up dip of PC-11-181 and to test a sparsely drilled area immediately northwest of the deposit. During fiscal 2013, the Company completed a twenty-hole, 3,296-metre program successfully exploring the down-dip and the northwest areas (the "Western Extension Area") of the Pine Cove deposit. The down-dip drilling successfully established continuity of gold mineralization with four, widely spaced drill holes all intersecting mineralization up dip from PC-11-181 (Anaconda Press Release, February 28, 2013). Hole PC-13-195 intersected 12.06 metres of 3.32 g/t gold from a depth of 168.66 metres and hole PC-13-199 intersected 3.06 metres of 7.69 g/t gold from a depth of 147.2 metres.

The Western Extension Area returned significant near surface mineralization with PC-13-196 intersecting 11.4 metres of 2.19 g/t from a depth of 26.6 metres and PC-13-210 returning 2.34 g/t gold over 41 metres starting at a depth of 51 metres (See press release dated June 5, 2013 for full details of drill results).

Mapping and mine development in the western portion of the pit has revealed that the geology and distribution of the gold mineralization is much more complex. There appears to be a significant, but as of yet unresolved, strong northeast structural control on the gold mineralization, particularly in the "Western Extension Area" where the mineralization is lensoidal and more quartz-rich. This lensoidal nature, both along strike and vertically, currently precludes its inclusion in the mine plan.

In the eastern and central portions of the pit the mineralized zones appear to dip moderately to steeply to the northeast towards the area tested by the down-dip drilling. While the down-dip area has returned significant intervals of gold mineralization, it is probably too deep to access by open pit. Additional drilling is warranted to test its amenability to underground mining methods.

2. Deer Cove and Stog'er Tight

Property acquisition

In November 2013, the Company entered into two three-year option agreements with 1512513 Alberta to acquire a 100% undivided interest in the Deer Cove and Stog'er Tight gold projects, which are adjacent to the Pine Cove Project. The Company has planned an exploration program that began with detailed compilation work and will be followed up by diamond drilling at Deer Cove in late May and Stog'er Tight over the summer.

Deer Cove

Discovered by Noranda prospectors in 1986, the Deer Cove deposit contains visible gold associated with brecciated quartz veining. Mafic volcanic rocks in thrust contact host the mineralization with strongly deformed talc-carbonate altered schists of the Point Rousse Complex. A Noranda/Galveston Resources Ltd. joint venture (1987-1989) carried out detailed exploration including diamond drilling (119 holes on the Deer Cove grid), construction of a 7.2-kilometre access road and underground exploration via a 507-meter long adit. No significant exploration work was subsequently undertaken and in 1998 the property reverted to the Crown.

In 2000 and 2001, South Coast Ventures Inc. staked much of the Deer Cove area. All historic data was compiled and digitized and additional drilling (14 holes) and sampling was completed. In 2010, Tenacity Gold Mining Company Inc. contracted P&E Mining Consultants Inc. ("P&E") to undertake a mining and economic analysis of the Deer Cove project. P&E reported that the Deer Cove deposit, the portion lying above 45 metres above sea level, contained an estimated resource of 12,900 tonnes grading 10.45 g/t gold at a cutoff grade of 6.0 g/t (This is a non-NI 43-101 compliant resource and has not been verified by Anaconda). A combination open pit and underground mining method was proposed and Tenacity entered into a toll-processing arrangement with the Nugget Pond mill. Mining did not proceed and the property transferred to Alberta.

Stog'er Tight

The Stog'er Tight deposit was discovered in 1988 through an International Impala/Noranda joint venture. Trenching and diamond-drilling follow-up of extensive gold-in-soil geochemistry outlined three auriferous zones, referred to as the Stog'er Tight, Gabbro West and Gabbro East zones. Noranda carried out more than 8,000 metres of diamond drilling in 80 holes on the Stog'er Tight property with much of the effort focused on Stog'er Tight. The deposit was outlined over a 450-meter strike length with channel sample assays up to 23 g/t gold over 7 metres and diamond-drill assays averaging 5.5 g/t gold over 4.5 metres. The Stog'er Tight deposit was estimated to contain a probable geological reserve of 650,000 tonnes grading 6.7 g/t gold (This is a historic non-NI 43-101 compliant estimate and Anaconda has not verified the accuracy of the data).

Ming Minerals Incorporated purchased the property and in 1996-1997 carried out diamond drilling and trenching. A revised resource estimate calculated that the deposit contained a resource of 229,200 tonnes grading 6.1 g/t gold (This is a historic non-NI 43-101 compliant estimate and Anaconda has not verified the accuracy of the data). Ming Minerals extracted a 30,735-tonne bulk sample from the Stog'er Tight deposit, however, recoveries were less than anticipated and mining was stopped.

In 2006, the mining lease was cancelled, the property reverted to the Crown and a call for proposals to develop the property was issued with South Coast Ventures Inc. being the successful applicant. Detailed compilation and digitizing of all historic exploration data was undertaken and additional diamond drilling and sampling were completed. In 2007, a toll processing arrangement was completed with the Nugget Pond mill. In 2010, P&E reported that the Stog'er Tight deposit contained an estimated mineral reserve of 65,200 tonnes grading 4.96 g/t gold, an indicated resource of 96,000 tonnes grading 7.04 g/t gold and an inferred resource of 53,000 tonnes grading 5.75 g/t gold (This is a historic non-NI 43-101 compliant estimate and Anaconda has not verified the accuracy of the data). Mining was initiated but results were less than favourable and development ceased. The property transferred to Alberta.

While the Company has no reason to doubt the accuracy of the historic results, the existing data should not be relied upon until the Company's own exploration work confirms that the data meets National Instrument 43-101 standards for disclosure. Historic results and the work that generated them predate the enactment of National Instrument 43-101, and may not meet the requirements of that policy.

3. Regional Exploration / Romeo and Juliet: During the first quarter of fiscal 2014, the Company completed diamond drilling at its Romeo and Juliet prospect and intersected a new gold-bearing zone dubbed the Balcony Zone, located between the Romeo and Connecting Zones (see press release dated September 16, 2013). It appears to dip steeply to the north, trends roughly east-west and is spatially associated with a northeast-trending topographic linear. Mineralization has been traced for approximately 100 metres and is open to the east, west and down dip. Gold is associated with pyritic altered mafic volcanic rocks, which is different from the Romeo and Juliet massive quartz vein hosted-style of gold mineralization. During the Quarter, two holes were drilled to test the Balcony Zone; however the assay results did not return the gold values the Company was expecting. Anaconda plans to do some more soil sampling and trenching in the future to further explore the northeast trending topographic linear.

The information in this MD&A has been reviewed and approved by David Evans, P. Geo., with Silvertip Exploration Consultants Inc., a "Qualified Person" under National Instrument 43-101.

ABOUT ANACONDA

Headquartered in Toronto, Canada, Anaconda is a growth oriented, gold mining and exploration company with a producing asset located on the Baie Verte Peninsula in Newfoundland, Canada called the Pine Cove mine.

FORWARD-LOOKING STATEMENTS

This document contains or refers to forward-looking information. Such forward-looking information includes, among other things, statements regarding targets, estimates and/or assumptions in respect of future production, mine development costs, unit costs, capital costs, timing of commencement of operations and future economic, market and other conditions, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to: the final approval of the private placement by the Toronto Stock Exchange; the grade and recovery of ore which is mined varying from estimates; capital and operating costs varying significantly from estimates; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of the any project caused by unavailability of equipment, labour or supplies, climatic conditions or otherwise; termination or revision of any debt financing; failure to raise additional funds required to finance the completion of a project; and other factors. Additionally, forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "may," "estimates," "expects," "indicates," "targeting," "potential" and similar expressions. These forward-looking statements, including statements regarding Anaconda's beliefs in the potential mineralization, are based on current expectations and entail various risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no responsibility to update them or revise them to reflect new events or circumstances, except as required by law.