American Bonanza Completes Property Sale 

VANCOUVER, BC  American Bonanza reported that it has completed the sale of its eastern Canadian exploration properties to Balmoral Resources Ltd. Bonanza is in receipt of all proceeds for this transaction. Bonanza will use the proceeds from this transaction to continue development of the 100% owned Copperstone gold mine in Arizona.

Major components of the milling and flotation circuit have been delivered to Bonanza's Arizona based construction contractor's yard in preparation for the commencement of construction. Bonanza recently obtained the federal permits necessary to advance Copperstone to production. Outstanding permits from the State of Arizona are expected to be complete during the first quarter 2011. About Bonanza Bonanza is re-activating mining at the preproduction-stage Copperstone gold mine in Arizona. Bonanza has 129 million shares outstanding, and has no debt. The company's address is Suite 305, 675 West Hastings St., Vancouver, BC V6B 1N2, (604) 688-7523, fax: (604) 681-0122, email: [email protected].