American Bonanza Finalizes Mill Purchase For Copperstone Gold Mine 

VANCOUVER, BC - American Bonanza Gold Corp. has closed the purchase of a milling and flotation circuit for the 100% owned Copperstone Mine in Arizona. Bonanza acquired the 700 ton per day milling and flotation/gravity plant, including a pre-engineered mill building, for a purchase price of US$400,000 and the issuance of 1,250,000 common shares.

As previously announced, the purchase price of the mill represents a significant cost savings and is expected to reduce the capital cost of the Copperstone project by approximately $400,000. The mill has operated for less than 2 years and is in very good condition, and Bonanza has acquired a full set of engineering drawings, which will help accelerate construction timelines and reduce costs. Bonanza is currently in the process of dismantling the mill to prepare for transporting and re-construction of the mill at the Copperstone Mine site. The mill is currently located in Calumet, Michigan, and includes a rod mill, ball mill, fume scrubber, flotation cells, cleaner cells, concentrate filter drum, tank thickeners, water storage tank, concentrate ore samplers, cyclones, duplex gravity concentrating jigs, the mill building, control panel and conveyor. The mill does not include a crusher and crusher building, which Bonanza will purchase separately in the near future. 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].