GOLDEN PHOENIX MINERALS (GPXM)

[maverick49er]

Golden Phoenix Applies for Full-Scale Gold Mill at Its Mineral Ridge Mine; Planned Idling of Heap Leach Nears
5:00 AM EDT August 19, 2005
Golden Phoenix Minerals, Inc. (OTC Bulletin Board: GPXM) has notified the Bureau of Land Management and the Nevada Division of Environmental Protection of its intent to modify the Mineral Ridge Plan of Operations (POO) to allow the addition of a full-scale milling facility at its 3800-acre gold property located near Silver Peak, Nevada. The plan calls for building an on-site mill to process the high-grade ores, supplemented by use of the heap-leach to process lower-grade material.

As part of its strategy to optimize production at the property, Golden Phoenix is preparing to place the current heap-leach operation on stand-by so as to preserve the mine's contained gold resource until it can be economically processed under the modified POO. The leach pad will be idled in the coming weeks as gold recovery drops below its economic threshold due to depletion. Personnel will remain on site to monitor and maintain the facilities and assist in development of the expanded mill and mine plans.

A comprehensive review of the past performance of selective underground mining at Mineral Ridge has lead Golden Phoenix to re-evaluate the one method of extraction that has proven to be economic: milling. Metallurgical testing by the Company and performance records from historic mill operations indicate that a gold recovery rate of 90% or greater is achievable. The Company's new three-tiered approach is to make modifications to the POO; preserve the existing gold resource until it can be economically extracted; and actively identify and explore the zones of mill-grade gold mineralization. A project timeline will be developed after additional engineering work has been completed.

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 the western United States using competitive business practices balanced by principles of ethical stewardship.

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.

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.
http://www.prnewswire.com