American Bonanza Gold Corp (fka ABGFF)

[Texan77]

All processing plant and crusher equipment has been installed and wired. Construction of the crusher back wall and dump pocket is complete. Emplacement of the sand overlay for the tailings impoundment is complete. Installation of the tailings pipeline is also complete. Only minor tie-in of process piping remains.

Bonanza's mining permits allow mining of ore for treatment in the gold processing plant after the two declines have joined at the north end of the mine, thus providing multiple escape routes and enhanced ventilation. The joining of the two declines is complete, allowing for the mining of ore to commence, and Bonanza is currently developing stopes. The safety chambers have been installed underground. Bonanza has also shipped nineteen truckloads of ore to the crusher in anticipation of processing plant startup.

As part of Bonanza's transition from contract mining to owner mining, all essential mining equipment has been purchased and delivered to site and is at work. Copperstone remains on track for a fourth quarter, 2011, mine and mill startup process, with the goal of achieving full production rates by the end of the year.

About Bonanza

Bonanza is nearing completion of the construction activities at the Copperstone gold mine, which will allow for re-activation of mining at the construction-stage Copperstone gold mine. Bonanza is well financed and has no debt. For more information please visit Bonanza's website at www.americanbonanza.com.