BOREALIS MINE

Gryphon Gold Corporation announce that a copy of the full Pre-Feasibility Study for the Borealis Oxide Project has been filed on the SEDAR website. The NI 43-101 compliant study, completed by Telesto Nevada Inc in mid-July of 2009, examined the proposed, low-cost open-pit mine at the company’s wholly owned project located in the Walker Lane Belt of western Nevada. Average annual production will be over 50,000 oz gold-equivalent. The project will require a low initial construction cost of US$14.8 million using a 10% contingency Average life-of-mine cash operating cost of US$476 per oz gold. The after-tax NPV reported is US$12.5 million, with an IRR of 27% and payback of 2.25 years based on a US$800 per ounce price of gold. The Pre-Feasibility Report for the Borealis Oxide Project shows a significant increase in the measured and indicated resource categories from previous NI 43-101 resource estimates. The revised measured and indicated mineable resources of 377,356 oz of gold1 gives the Borealis Project an estimated five-year mine life with average annual production of more than 50,000 gold-equivalent ounces, including recovered silver ounces.

Gryphon Gold report the receipt of a positive Pre-Feasibility Study for the Borealis Oxide Project. The study confirms a proposed five-year mine plan with estimated average annual production of more than 50,000 gold-equivalent ounces. Another 7,000 ounces of gold is estimated to be recoverable in year six, after mining ends. The initial capital and all start up costs in year one is estimated at US$22.6 million, including $14.8 million for initial capital with a 10% contingency, which equals US$87.53 per gold-equivalent ounce recovered over the life of the proposed mine. The life-of-mine cash operating cost for the Borealis Oxide Project is estimated at US$476 per ounce of gold recovered. The project will have, if developed, a pretax net present value (NPV) of US$12.5 million at a 5% discount rate, an internal rate of return (IRR) of 27% and a 2.25-year payback period based on a gold price of US$800 per ounce.

Gryphon Gold announced that the company is moving forward with a pre-feasibility study for mine development on the oxide portion of its Borealis gold resource property in Nevada, USA, which consists of 1,422,500 Measured and Indicated ounces of gold and 1,104,500 Inferred ounces of gold.