American Bonanza To Become Owner-Miner 

RENO, NV - American Bonanza Gold Corp. reported that it has purchased a mining fleet for the transition to owner-mining at its 100% owned Copperstone gold mine in La Paz County, Arizona. The mining equipment purchased includes drill jumbos, loader-hauler-dumpers, exploration and production drills, ore haul trucks, a rock bolter and other specialized underground mining equipment.

Some of the mining equipment has already arrived at the Copperstone gold mine site with a significant number of items scheduled to be delivered soon, and the remainder of the mining fleet on schedule to be delivered to the mine site. This purchase of the mining fleet represents a major step forward in Bonanza's transition from contract mining to owner-mining. Bonanza anticipates a smooth transition to owner-mining and resulting improvements in the mining production rate and reduced costs associated with mining. Copperstone remains on track for a fourth quarter, 2011, mine and mill startup process, with the goal of achieving full production rates by the end of the year.

Bonanza and Mining & Environmental Services LLC (the "Contract Miner") have mutually agreed to terminate the Mining Agreement (previously announced) and Professional Services Agreement, effective immediately. Demobilization of the Contract Miner's fleet of mining equipment has begun, and this process is scheduled to be mainly complete shortly. With the addition of the newly acquired fleet of underground mining equipment, Bonanza will now become owner-miner of the Copperstone gold mine.