GOLDEN PHOENIX MINERALS (GPXM)

[Captain Black Bob Blanco]

From the 8K Item 8.01 Other Information

Golden Phoenix Minerals, Inc. (the "Company") and several of its current and former officers, consultants and attorneys have been named as a defendant in a lawsuit filed on February 26, 2016 in the U.S. District Court for the Southern District of Florida, Civil Action No. 1:16-CV-20712-KMM by Pinnacle Minerals Corporation ("Pinnacle") ("Florida Litigation"). The Florida Litigation relates to a lawsuit previously brought by Pinnacle against the Company that was referred to arbitration. In the former case, the Company prevailed on its defense of Pinnacle's claims and on its counterclaims against Pinnacle and received an arbitration award that Pinnacle is currently contesting. Following the arbitration, Pinnacle filed for bankruptcy protection. The Company is awaiting a decision on Pinnacle's request that the arbitrator reconsider the award. Pinnacle's motion to reconsider an order releasing certain funds held to secure the arbitration award to the Company was denied by the arbitrator. Claims in the Florida Litigation include Racketeer, Influenced and Corrupt Organizations (RICO) under 18 U.S.C. 1961 and Civil Conspiracy against all defendants and breach of fiduciary duty against David Caldwell, a former officer of the company. The Company does not believe the Florida Litigation has merit and is defending the case vigorously.