Final Major Permit For The Copperstone Gold Mine 

VANCOUVER, BC - American Bonanza Gold Corp. reported that it has received the final key permit required for gold mining and processing at the 100% owned Copperstone gold mine in Arizona. The aquifer protection permit (the "APP") was issued by the Water Quality Division of the Arizona Department of Environmental Quality (the "ADEQ") as aquifer protection permit number P-106172.

The process for obtaining the APP began in April, 2010 with the submission of the administratively complete permit application, and was completed in about one year. Related to the Company's receipt of the APP, the U.S. Bureau of Land Management (the "BLM") has also issued their final project approval to Bonanza. A milling and flotation plant was purchased in 2010 and is currently being prepared for immediate startup of the construction phase at Copperstone. Mobilization of equipment for underground mining has also begun. Construction of the ore processing facilities and underground mining development will occur concurrently, with the production of gold on schedule for the third quarter of 2011. The project remains on budget. Brian Kirwin, President, observed: "This permit is a major milestone for Bonanza. With the approval of the aquifer protection permit, the Copperstone gold mine is now in receipt of all major permits. Bonanza and its contractors have commenced construction of the plant and underground pre-development, and the project is on schedule and on budget. The company's address is Suite 305 - 675 West Hastings St., Vancouver, BC V6B 1N2, (604) 688-7523, fax; (604) 681-0122, email: [email protected].