BELMONT

American Bonanza has raised Can$4.4 million in a brokered financing to fund the company's Fenelon Gold Project in the Casa Berardi area of Quebec, to pay out the remainder of existing loan facility totaling US$600,000 and for the ongoing development of the Copperstone Project in Arizona. American Bonanza issued 8,174,000 flow through shares at 45 cents, and 1,588,000 units at a price of Can$0.45 per unit, with Desjardins Securities as lead agent and including Canaccord Capital. American Bonanza commenced a prefeasibility study on at the company's wholly owned Copperstone gold project in Arizona, USA in June.

American Bonanza has acquired a prospective exploration property in the historic Belmont Mining District of Nevada. The property is in Nye County, about 40 miles north of Tonopah and 14 miles east of the multimillion ounce Round Mountain Gold Mine, in the Walker Lane Mineral Belt. Bonanza has acquired and currently controls 500 acres (200 ha) through the staking of 23 contiguous mineral lode mining claims. Exploration efforts in 2004 will focus on encountering the extension of the Belmont veins under recent sediments. An exploration program leading up to exploratory drilling is underway and includes mapping, data compilation and target definition.