July 5, 2011 NEWS RELEASE

Transcription

1 GOLD CANYON RESOURCES INC. GCU: TSX-V Suite Granville Street, P.O. Box 1036 Pacific Centre, Vancouver, BC, Canada V7Y 1G Tel: (604) Toll free: 1 (888) Fax: (604) July, 2011 NEWS RELEASE GOLD CANYON RECEIVES INITIAL METALLURGICAL RESULTS, ASSAYS FOR FIRST DEEP HOLE AND ANNOUNCES COMMENCEMENT OF SUMMER DRILLING AT SPRINGPOLE GOLD PROJECT Gold Canyon Resources Inc. (GCU: TSX-V) ( Gold Canyon or the Company ) is pleased to announce progress on multiple fronts at its 100% controlled Springpole Gold Project, located 110 kilometers northeast of the Red Lake Mining Camp, Ontario, Canada. Summary of Activity Discussed in this News Release: Initial gold and silver recoveries from eight bottle roll tests conducted on Portage Zone material have been received and indicate good recoveries for both metals. Average peak recoveries for gold are 80.1% and for silver, 7.1%. Advanced testing will begin shortly on core from a series of four metallurgical holes currently being drilled at Springpole. Assays have returned from the first successful deep drill hole (SP11-063) to test the down dip projection of the Portage Zone. This hole encountered numerous intervals of low-grade gold mineralization (see attached cross section and map) along the margin of the alkaline porphyrybreccia complex. Lithologic data from this hole suggests the Portage Zone may be dipping to the northeast in this area. To test this, a second deep hole is planned on this same section; however, drilling in the opposite direction. Complete silver assays have returned for all holes from the Winter 2011 Drill Program and continue to indicate consistent significant silver mineralization accompanies gold mineralization at Springpole. Interestingly, the silver-to-gold ratio is as high as 20.9-to-1 in hole SP11-0, the southeast-most drill hole yet drilled in the current drill campaign. This increase may be evidence of metal zonation within the mineralized system. The Summer 2011 Drill Program has commenced. Two land-based drills are presently drilling additional deep tests and metallurgical holes. Two barge-based drills are now scheduled to start mid-july. Four drills are scheduled to operate at site from mid-july through November. Initial Bottle Roll Results A suite of eight samples of mineralized material from the Portage Zone were recently submitted to SGS Canada Inc. in Vancouver for bottle roll leach testing for gold and silver. Bottle roll tests were conducted on pulverized material (80%, 6-70 microns) using a 1 gram NaCN per liter buffered solution for 96 hours. Peak gold recovery for most samples was reached within 36 hours. Peak gold recoveries range from 70-93% and average 80.1%. Calculated CN consumption is moderate ranging from kg/t, and CaO consumption was small, kg/t, probably due to the alkaline nature of the mineralization.

2 2 Peak silver recovery lagged behind peak gold recovery with most samples showing peak silver recovery between hours. Peak silver recoveries range from 2-88% and average 7.1%. Our initial bottle roll results indicate good recoveries for both gold and silver at Springpole, comments Dr. Quinton Hennigh, Technical Advisor and Director of Gold Canyon Resources. We are presently drilling a series of four holes to be used for additional metallurgical test work in which conditions will be explored for optimizing recoveries. Summary of Au and Ag Recoveries from Bottle Roll Tests on Eight Mineralized Portage Zone Samples Grind (K80, microns) CN consumption (kg/t) CaO consumption (kg/t) Calculated Head Gold Grade (gpt) Sample Hole From (m) To (m) Sample 1 SP Sample 2 SP Sample 3 SP Sample 4 SP Sample SP Sample 6 SP Sample 7 SP Sample 8 SP Shaded values indicate peak recovery Grind (K80, microns) CN consumption (kg/t) CaO consumption (kg/t) Calculated Head Silver Grade (gpt) Sample Hole From (m) To (m) Sample 1 SP Sample 2 SP Sample 3 SP Sample 4 SP Sample SP Sample 6 SP Sample 7 SP Sample 8 SP Shaded values indicate peak recovery First Deep Drill Hole % Au Extraction Hours % Ag Extraction Hours Assays have returned for the first successful deep hole drilled at Springpole. Diamond drill hole SP was collared on the southwest shore of Portage Bay and oriented at 00 degrees true north and a -4 degree inclination (see attached map and section). This hole twinned hole SP11-062, the first attempted deep hole, which was lost in broken ground at a depth of 46 meters. SP veered sharply to the right, the end of the hole falling approximately 10 meters south of its intended target, but it managed to reach a down hole depth of 97 meters making it the longest hole yet drilled at Springpole. Drill hole SP appears to have drilled sub-parallel to the margin of the alkaline porphyrybreccia complex which appears to be dipping northeast in this area rather than having a nearly vertical dip as first believed. SP encountered numerous intercepts of low-grade gold mineralization. A second deep hole is planned on this same section, but drilling in the opposite direction to determine if the Portage Zone indeed dips northeast. Analyzing the results from SP11-063, comments Hennigh, this hole is possibly telling us some important information. If the Portage Zone is indeed dipping northeast, it would suggest previous drill intercepts in holes SP and -024 and SP more closely reflect true width of the Portage Zone in this area. In other words, it might be wider than we first thought. Once we drill a deep hole in the opposite direction on this same section we will be able to confidently estimate the true dip and width of the Portage Zone.

3 3 Summary of Results from SP and -063 Hole From To Gold (grams Silver (grams (feet) Gold (oz Silver (oz Silver-to-Gold Ratio SP A zone of no recovery was encountered from meters SP in process in process N/A in process in process N/A in process in process N/A in process in process N/A in process in process N/A in process in process N/A in process in process N/A Zones of no recovery were encountered from and meters Weighted averages were used to calculate all reported intervals Zone of no core recovery was given a gold grade of 0 in the weighted average calculations above Reported intervals apply a 0.2 gram per tonne gold (0.006 oz per ton gold) lower cutoff Internal dilution within reported intervals does not exceed core lengths of 8 meters. 1 troy oz = grams Conversion factor grams per tonne to troy oz per short ton; g/t divided by or g/t multiplied by meter = 3.28 feet Complete Gold and Silver Results from Winter 2011 Drill Program Complete gold and silver results from the Winter 2011 Drill Program are listed in the attached table. Silver results for holes SP11-042, -0, -07, -09 and -060 are new. All other results have been released in previous news releases between February and May, The new silver results reported here continue to indicate gold mineralization is consistently accompanied by appreciable silver in the Portage Zone. Interestingly, the silver-to-gold ratio is as high as 20.9-to-1 in hole SP11-0, the southeast-most drill hole yet drilled in the current drill campaign. This increase may be evidence of metal zonation within the mineralized system. Summary of Gold and Silver Results from the 2011 Winter Drill Program Hole From To Gold (grams Silver (grams (feet) Gold (oz per ton) Silver (oz Silver-to- Gold Ratio SP includes includes includes SP includes includes includes

4 4 cont'd: Summary of Gold and Silver Results from the 2011 Winter Drill Program From To Gold (grams Silver (grams Gold (oz per Silver (oz Silver-to- Hole (feet) ton) Gold Ratio SP SP includes includes includes includes includes includes includes Intervals of no core recovery were encountered at , , , and m SP includes includes includes Intervals of no core recovery were encountered at , , , , , and m SP includes includes includes includes SP includes includes Intervals of no core recovery were encountered at , , and m SP includes includes includes SP includes Intervals of no core recovery were encountered at and m SP SP includes includes includes SP includes includes An interval of no core recovery was encountered from m

5 cont'd: Summary of Gold and Silver Results from the 2011 Winter Drill Program Hole From To Gold (grams Silver (grams (feet) Gold (oz per ton) Silver (oz Silver-to- Gold Ratio SP includes includes includes includes includes includes Intervals of no core recovery were encountered at , , and m SP includes includes An interval of no core recovery was encountered from m SP includes includes includes includes SP includes An interval of no core recovery was encountered from m SP11-04A includes includes includes includes includes SP An interval of no core recovery was encountered from m SP SP includes includes includes An interval of no core recovery was encountered from m SP includes includes SP Interval of no core recovery was encountered from and m SP includes SP

6 6 cont'd: Summary of Gold and Silver Results from the 2011 Winter Drill Program Hole From To Gold (grams Silver (grams (feet) Gold (oz per ton) Silver (oz Silver-to- Gold Ratio SP Interval of no core recovery was encountered from and m SP An interval of no core recovery was encountered from m SP SP includes Intervals of no core recovery were encountered from , , and m SP includes Intervals of no recovery were encountered from and m SP includes SP includes includes includes includes An interval of no recovery was encountered from m SP includes includes Intervals of no recovery were encountered from and m Weighted averages were used to calculate all reported interval Zones of no core recovery were given a gold grade of 0 in the weighted average calculations above Reported intervals apply a 0.2 gram per tonne gold (0.006 oz per ton gold) lower cutoff Internal dilution within reported intervals does not exceed core lengths of 12 meters. 1 troy o z = grams Conversion factor grams per tonne to troy oz per short to n; g/t divided by or g/t multiplied by meter = 3.28 feet Summer 2011 Drill Program Two land-based diamonds drills operated by Rodren Drilling Ltd. are presently drilling at Springpole. These rigs are presently drilling additional deep drill holes as well as four metallurgical holes. Once these holes are complete, these two rigs will continue drilling exploration and infill holes in the Portage Zone from lakeshore. Two barge-based drills contracted through Landdrill Inc. are expected to be mobilized to site around July 1 at which time they will begin drilling infill holes needed for resource estimation. All four rigs will operate continuously from mid-july through early November, weather dependent, and should produce around 12,000 meters of core. Holes drilled this summer are expected to allow the Company to revise the compliant resource estimate for the deposit sometime late in the second half of About Springpole Springpole is an alkaline intrusion hosting a gold system that represents a potentially new style of Canadian Archean Shield gold deposit. The Portage zone is hosted by a trachytic porphyry intrusion displaying polyphase autolithic breccias that host gold mineralization. Other zones, including the

7 7 East Extension, Camp and Main, consist of high-grade veins and pods hosted in diatreme breccias composed of intrusive and country rock fragments. These breccias surround the northwest and northern margins of the Portage Zone. The known mineralized zones underlie a total known area of about 4 square kilometers representing only about 1 percent of the greater alkaline intrusive complex which remains yet to be explored. Core was logged then split using diamond saws with one half sent for analyses and the other half stored for future reference. Quality control programs include the use of field and laboratory duplicates, standards, blanks, and internal and external check assaying. Certified sample standards were submitted with the normal sample stream. Gold and silver assays were completed by SGS Canada Inc. in Red Lake and Toronto, Ontario using a 30 gram charge, fire assay, with an ICP finish. For over limit assay results, initial assays in excess of 10.0 grams per tonne Au, a gravimetric finish is utilized. Quinton Hennigh, Ph.D., P.Geo. and Alan Roberts, M.Sc., P.Geo. are the Qualified Persons pursuant to National Instrument responsible for, and have reviewed and approved, the technical information contained in this news release. Dr. Hennigh is acting as a technical adviser to Gold Canyon and Alan Roberts is the Senior Geologist of Alaska Earth Sciences, Inc. and Project Manager at Springpole. About Gold Canyon Resources Inc.: Gold Canyon is engaged in the acquisition and exploration of mineral and precious metals properties. The Company controls a 100% interest in the Springpole Gold - Horseshoe Island Gold, Platinum, Palladium Project and Favourable Lake Poly-metallic property currently under option to Guyana Frontier Mining Corp. pursuant to an option and joint venture agreement entered into in December all in the Red Lake Mining District of Ontario, Canada. Through its wholly owned U.S. subsidiary, Gold Canyon Resources USA Inc., the Company controls a 100% interest in the Cordero Gallium Project situated in Humboldt County, Nevada, U.S.A. Gold Canyon entered into a Joint Exploration Agreement with the Japan Oil, Gas and Metals National Corporation (JOGMEC) in January Additional information can be found on the Company s website: Akiko Levinson, President & Director For further information, please contact: Tel: (604) Toll free: 1 (888) Fax: (604) info@goldcanyon.ca Investor Relations: Leo Karabelas, Tel: (416) leo@frontlineir.com Certain statements contained in this news release using the terms may, expects to, project, estimate, plans, and other terms denoting future possibilities, are forward-looking statements in respect to various issues including upcoming events based upon current expectations which involve risks and uncertainties that could cause actual outcomes and results to differ materially. The future conduct of the Company s business and the feasibility of its mineral exploration properties are dependent upon a number of factors and there can be no assurance that the Company will be able to conduct its operations as contemplated and the accuracy of these statements cannot be guaranteed as they are subject to a variety of risks that are beyond our ability to predict or control and which may cause actual results to differ materially from the projections or estimates contained herein. The risks include, but are not limited to, the risks described in the above press release; those risks set out in the company s disclosure documents and its annual, quarterly and current reports; the fact that exploration activities seldom result in the discovery of a commercially viable mineral resource and are also significant amounts of capital to undertake and the other risks associated with start-up mineral exploration operations with insufficient liquidity, and no historical profitability. The Company disclaims any obligation to revise any forward looking statements as a result of information received after the fact or regarding future events. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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9 SP SP10-02 SP SP SP SP10-01 SP SP SP SP SP SP SP11-03 SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP11-03 SP SP11-08 SP SP SP11-07 SP SP10-00 SP11-06 SP SP11-04 SP11-04A SP SP11-04 SP SP11-09 SP SP SP11-02SP SP SP SP11-01 SP SP SP µ Collars 2010 Collars 2011 Drill Traces (Assays Released) 2010 Drill Traces Historic Drilling Lake Surface SP SP Meters UTM NAD 27 Zone 1N SP Ounces/Ton Se ct io n Grams/Tonne SP11-00 Cutoff Value of 0.34 grams/tonne or 0.01 oz/ton 31 May 2011 kdb