Golden Phoenix Signs LOIs to Acquire 80% Interest In Claims

SPARKS, NV - Golden Phoenix Minerals, Inc. reported the signing of two Letters of Intent with Mhakari Gold Corp. to secure the option to acquire 80% interest in the Vanderbilt Mine and Coyote Fault silver and gold properties, a 2,000-acre land package containing over 100 claims flanking the Mineral Ridge Gold Project located southwest of Tonopah, Nevada.  The Vanderbilt claims cover the historic Vanderbilt Silver and Gold Mine along with the surrounding Galena Flats area. This was the first area to be mined on Mineral Ridge from the late 1860's to the early 1900's. Since then, little exploration has been conducted in and around the mine using modern techniques. Throughout the Vanderbilt property numerous rock samples assaying from 4 to 25 ounce per ton (opt) silver and .01 to 1.5 opt gold have been recently recorded. According to historic sources the northern extension of the Vanderbilt vein appears to be open. The Coyote Fault Property covers the northern extension of the Coyote Fault, which is considered to be one of the possible structural controls to known gold mineralization on Mineral Ridge. The Coyote Fault Property lies adjacent to the western perimeter of the Mineral Ridge Gold Project, directly northwest of the Solberry and Blue Light zones. As with the Vanderbilt Mine, no modern exploration of the Coyote Fault Property has been reported. Tom Klein, CEO of Golden Phoenix, commented on the LOIs, "We are very pleased to be optioning this strategic block of claims bordering two sides of our Mineral Ridge joint venture. The opportunity to apply our in-house drilling capabilities to the exploration of these historic claims can help to validate management's belief that Mineral Ridge is one of Nevada's premier mining districts. By acquiring and developing these key properties, Golden Phoenix hopes to contribute to the geological delineation of Mineral Ridge already underway. Thanks to the cooperation of Mhakari Gold, we look forward to supporting our joint venture partner, Scorpio Gold, in its efforts to bring the Mineral Ridge district into near-term production and long-term expansion." Under terms of the LOIs, the parties have agreed to immediately proceed to negotiate definitive agreements, including the terms the Company must satisfy to complete the acquisition of its 80% interest, which include specified cash payments, issuances of shares and warrants and certain minimum exploration and development expenditures. There can be no assurance, however, that the parties will consummate the definitive agreements.