Borealis Has Performed Ahead Of Construction Timelines 

VANCOUVER, BC - Gryphon Gold Corporation broke ground and began construction activities on the Borealis oxide gold heap leach operation on June 6, 2011, which was funded using proceeds of its $10 million public offering closed in May, 2011. Construction of the project remained on schedule and below budget through the first three months. Gryphon Gold began stacking heap leach pads in early September and began the leaching cycle on September 26, 2011, and fluid return from the heap leach pad began in less than 24 hours. The carbon columns were activated in early October and the first loaded carbon was shipped to Just Refiners, Inc. in Reno, Nevada.

Gryphon Gold estimates that the loaded carbon gold and silver assays from the October shipments will assay approximately 15%-20% of gold and silver that will be loaded on carbon when the Borealis oxide gold heap leach operation is loading at full capacity.

Final settlement assays routinely require the use of third party independent evaluators, and the final payments to Gryphon Gold are expected 6 to 7 weeks from the shipment date. Gryphon Gold management projects that the ramp up of production through the end of the year will produce 3,700 gold equivalent ounces and the total estimated production for the 2012 calendar year will be 43,600 gold equivalent ounces.

October production would have been near or at plan if overliner production had met planned overliner targets.The 3 overliner layer is being crushed and screened by a contractor using Borealis waste material that has a gold grade averaging .012 oz./ton. To date the contractor has not maintained a rate of production to allow for full crusher utilization by Gryphon Gold. To increase overliner production, Gryphon has utilized the services of a second contractor to provide additional screened material from a local quarry.

To compensate for the shortfall in overliner production, Gryphon Gold will take immediate action as follows: 1) A second layer of heap material will be placed over the first layer of heap material that has been leached, and 2) The second heap will be placed with a height of 25 feet versus the 12 feet height doubling the capacity per square foot of liner. These two actions are anticipated to provide approximately 6 weeks of stacking capacity at 5000 tons per day giving the contractor the time to complete the overliner for the remainder of the heap leach pad.

The phased approach on a limited budget is a very aggressive manner to bring a mine into production. To date we have performed ahead of expectations in terms of the construction timeline. In terms of production data, the gold recovery to fluid to date is estimated at 35% with heaps still receiving cyanide and producing ounces, and recovery of gold to carbon running at approximately 97.7% said John Key, CEO.  The overliner production has limited our ability to place material on the heap leach pad and we are committed to taking the actions to clear the way to full production.

The company's address is Suite 711-675 West Hastings Street, Vancouver, BC V6B 1N2, 888.261.2229, fax: 604.608.3262.