Gryphon Gold Updates Progress on Borealis Mine Development 

VANCOUVER, BC - Gryphon Gold Corporation reported that on site construction work for the Borealis Oxide Heap Leach Operation as of June 26, 2011 is on budget and on schedule. Gryphon anticipates first revenue from gold sales in October, 2011.

John Key, Chief Executive Officer of Gryphon, said, "We are pleased to be working with Gold Canyon Mining and Mt. Grant Electrical. These two prime contractors have worked with the company to emphasis hiring in Hawthorne, Nevada and both are performing as anticipated in scheduling. Both companies have actively attacked our aggressive schedule that makes Gryphon Gold a gold producer in September, 2011."

The main areas of advance since the June 6, 2011 groundbreaking are: Pregnant and Barren Pounds are scheduled to be 50% complete by July 1, 2011. As of June 26, 2011 the Pregnant and Barren ponds were at the 50% completion level. Onsite Electrical Installation including a 2MW generator set is scheduled for completion on July 1, 2011. As of June 26, 2011 this installation was 80% complete. Scotia International has confirmed that the construction of the Carbon Columns is currently on schedule and they will make delivery on schedule.

The 150,000 gallon water head tank is currently 70% complete. Although this is not a critical path item for near term completion the tank is projected to be completed by July 1, 2011.

The company also reported results for the year ending March 31, 2011. The Company had a consolidated loss from continuing operations of $3,383,599 and income of $635,708 from discontinued operations for the year ending March 31, 2011, compared to a consolidated loss of $3,273,757 from continuing operations or $0.05 per share and income of $957,536 for the year ending March 31, 2010 on fewer shares outstanding.

On April 23, 2010, Gryphon Gold sold its wholly owned subsidiary, Nevada Eagle Resources LLC to Fronteer for $4,750,000. Fronteer paid $2,250,000 in cash and $2,500,000 by assuming Gryphon Gold's obligations under a convertible note, which was retired. In addition, Gryphon Gold retained the Copper Basin property located in Idaho. The Company recognized a gain of $664.952 in connection with the sale. On January 21, 2011, the Company closed the private placement announced on January 5, 2011 and issued 6,500,000 units at a purchase price of Cdn$0.20 per unit for gross proceeds of $1,308,558. Each unit consists of one share of common stock and one half of one common stock purchase warrant. Each whole common stock purchase warrant is exercisable for a period of two years from the date of closing of the private placement to purchase one additional share of common stock at an exercise price of US$0.30.

On February 4, 2011, we announced that we had filed a registration statement on Form S-1 with the Securities and Exchange Commission in the United States and submitted for filing a preliminary short form prospectus with securities regulatory authorities in the Canadian Provinces of British Columbia, Alberta, Saskatchewan and Ontario, in relation to a proposed $10,000,000 public offering of our common stock in both the United States and Canada. Subsequent to year end, on May 18, 2011, this public offering was completed for proceeds of $10.9 million. On May 26, 2011, we announced that, effective May 20, 2011, we exercised the option to fix the Net Smelter Return (NSR) royalty on its Borealis Property at 5%. In August 2008, Gryphon and its wholly-owned subsidiary, BMC, entered into an option agreement with the lessors of the Borealis Property to amend the Borealis Mining Lease to fix the gold price based sliding scale royalty at a 5% Net Smelter Royalty. Prior to the exercise of the option, the NSR payable to the lessors on the Borealis Property was calculated as the price of gold divided by one hundred expressed as a percentage. Gryphon Gold is a Nevada-focused gold exploration company. The Company's principal property is its Borealis gold project located in the Walker Lane gold belt of western Nevada.