GOLDEN PHOENIX MINERALS (GPXM)

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Golden Phoenix Reaches Ashdown Molybdenum Zone, Stope Development Begins
1:18 PM EST March 16, 2006
Following a seven-month multi-million dollar effort to drive 425 feet of new workings and rehabilitate 380 feet of pre-existing decline, Golden Phoenix Minerals, Inc. (OTC Bulletin Board: GPXM) is proud to announce that its mining crews have reached the Sylvia molybdenum vein at the Ashdown Mine in Humboldt County, Nevada. Underground mining crews arrived at the North Zone molybdenum occurrence on Thursday morning, March 16, 2006, from where they will begin stope development for a bulk-sampling program in advance of full-scale molybdenum production.

The mineralization reached is part of a larger body of molybdenum disulfide running north-to-south along a 900-foot strike within the 4500-foot long Sylvia fault, which traverses the property. The mineral body is divided into the North and South Zones, connected by 650 feet of pre-existing decline. Its true dimensions are subject to extension as exploration and development work continues in order to define the resource and reserve potential of mineralization along the length of the Sylvia fault.

The North Zone is known from previously mapped vein intersections sampled by the original developer inside the old workings. Channel samples taken at four exposures range from 1.0 to 4.0 feet wide and grade between 0.7% and 5.0% elemental molybdenum (Mo). The true thickness and grade of the North Zone will be confirmed by driving sublevel development drifts to define tons and grade prior to initiating full scale mining. A portion of a 1000-ton bulk sample approved by the Bureau of Land Management will be removed from this Zone for metallurgical testing and mill optimization. The initial sample is expected to grade between 1.5% and 2% elemental molybdenum and will be used to fine-tune the Ashdown mill for future production.

The South Zone is known from past mapping to contain the high-grade Sylvia Shoot, which is the primary molybdenum target initially selected for full-scale mining. The Sylvia Shoot is approximately 200 feet long with recorded grades of between 1.2% and 15.6% Mo. As previously reported, the Sylvia Shoot is estimated to contain approximately 21,550 tons of mineralized material grading 5.8% Mo after accounting for 30% dilution expected during mining.

In the coming weeks, a crosscut will be driven across the mineralization into the footwall of the vein where a draw point will be excavated. A raise will then be driven about 20 feet vertically from the end of the draw point to intercept the vein. Miners will drift along the vein extracting the material for the flotation test. While these activities are proceeding, a separate crew will continue to refurbish the existing decline down to the high-grade South Zone. Once the Sylvia Shoot is reached, access to the vein will be developed prior to extracting a bulk sample from that area.

The bulk-sampling program is designed to define the economic parameters of the North and South Zones and prove economic viability prior to initiation of full-scale mining. Concurrent with this sampling effort, Golden Phoenix is completing a seven-month construction phase of its 100-ton flotation mill, located two miles from the mine. The mill is scheduled for commissioning upon the commencement of bulk sampling.

Golden Phoenix Minerals, Inc. is a Nevada-based mining company committed to deliver value to its shareholders by acquiring, developing and mining superior precious and strategic metal deposits in North America using competitive business practices balanced by principles of ethical stewardship. Golden Phoenix owns the Mineral Ridge gold and silver property near Silver Peak, Nevada, and is manager/operator of the Ashdown gold and molybdenum property in Humboldt County, Nevada.

Visit the Golden Phoenix Web site at http://www.Golden-Phoenix.com/

Forward-Looking Statements. Certain statements included herein may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company's actual results could differ materially from those anticipated in such forward-looking statements as a result of a number of factors. These risks and uncertainties, and certain other related factors, are discussed in the Company's Form 10-KSB, Form 10-QSB and other filings with the Securities and Exchange Commission. These forward-looking statements are made as of this date and the Company assumes no obligation to update such forward-looking statements as a result of a number of factors.

CONTACT: Golden Phoenix Minerals, Inc. Robert Martin Director of Corporate Development 775/853-4919 E & E Communications Paul Knopick 949/707-5365 [e-mail]

SOURCE Golden Phoenix Minerals, Inc.

Robert Martin, Director of Corporate Development of Golden Phoenix Minerals, Inc., [phone]; or Paul Knopick of E & E Communications, [phone], [e-mail], for Golden Phoenix Minerals, Inc.
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