Gryphon Gold Corp. Preliminary Assessment Supports Initial 46,000 ozs/yr Gold Production from Oxide Resources by 24hgold

September 2, 2008

Gryphon Gold - Press Release

Gryphon Gold Corporation - Preliminary Assessment Supports Initial 46,000 ozs/yr
Gold Production from Oxide Resources

To report the Scoping Study on the Sulphide resources by early October

Vancouver, B.C. - Gryphon Gold Corporation (GGN: TSX / GYPH:OTC.BB) is pleased to report the positive results of an independent NI 43-101 compliant Preliminary Assessment on the oxide portion of its 2.5 million ounce Borealis gold resource in Nevada, as prepared by Telesto Nevada Inc. of Reno, NV in collaboration with Knight Pi�sold Consulting & Co. of Denver, CO.

The current Borealis gold resource is in two distinct deposits:

The Oxide deposit is a 725,000 oz gold resource consisting of 340,000 Measured and Indicated ounces (contained in 15.6 million tons grading 0.022 opt) and 385,000 Inferred ounces (contained in 26.8 million tons grading 0.014 opt).
The Sulphide deposit is a 1.8 million ounce gold resource with 1,085,000 M&I ounces (contained in 21.0 million tons grading 0.05 opt) and 715,000 ounces of Infd (contained in 22.5 million tons grading 0.03 opt).

The independent Preliminary Assessment (PA) of the oxide resource estimates a 46,000 oz/year open-pit oxide heap leach gold mine with an initial mine life of 5 years. This initial mine plan provides for mining of only 356,000 ozs (246,000 M&I and 110,000 Infd* contained in 11.7 million tons grading 0.04 opt) of the total 725,000 ozs oxide resource, with estimated recovery of 232,000 ozs in the first 5 years on the following schedule:

The mine plan contemplated by this PA has been specifically designed to optimize the cash flow, and the removal of the oxidized material immediately above and adjacent to the Graben sulphide gold deposit, in the initial three years of operation. This is intended to improve access to the much larger 1.8 million oz sulphide resource (1,085,000 M&I, 715,000 Infd), and provide funding for its development.

Once this has been completed, an alternative oxide mining plan will be prepared incorporating the remaining 369,000 ozs (94,000 M&I and 275,000 Infd*) of oxide resources. Drilling to extend the mine life is planned to start once positive cash flow has been achieved. The inclusion of these additional 369,000 ozs in the mine plan is expected to extend the oxide mine's life provided feasibility is established for the mining of this additional resource.

The PA incorporates the very latest costs, with fuel priced at its recent peak. It is anticipated that, as the design and construction of the mine are optimized, there will be some improvement on these results. The PA used a gold price of US$775/oz, and a silver price of US$12.00/oz (65:1).

The PA accounts for all taxes, the cost of exercising the option to reduce the royalty, and is based on 100-per-cent equity financing of the development budget. The possible use of debt financing would further improve the projected Internal Rate of Return (IRR). The PA represents an as yet unoptimized design for the leachable gold deposit, with two-stage crushing and conventional carbon adsorption extraction at 5,500 tons per day. The base case details are:

Average annual production of approximately 46,000 ounces of gold,
Initial capital cost of US$19.2 million, which includes:
- $14.7 million of fixed assets, (including a $1.0 million contingency allowance),
- $1.5 million of working capital, and,
- $3.0 million for initial bonding.
Total Cash costs of US$533/ounce of gold includes the royalty and reclamation costs,
Initial mine life of 5 years,
After-tax internal rate of return (IRR) of 26%, with an estimated payback period of 28 months,
Sensitivity: each 1% change in the gold price changes the IRR by 1.7%,
Life of mine strip ratio: 1.5:1,
Ore grade: 0.04 opt (1.1 gpt) gold.

As a result of the very successful 2007 exploration program, whereby Gryphon increased the total resources of the Borealis to 2.5 million ounce (April 28, 2008) from the previously reported 1.8 million ounces (a 39% increase), an Independent Scoping Study was commissioned to determine the economic viability of mining these sulphide resources. The Scoping Study of the 1.8 million ounce sulphide gold resource (with 1,085,000 M&I and 715,000 Infd) is anticipated to be completed by early October.

It is expected to affirm the potential of a 100,000 oz/yr open-pit sulphide gold mine with an initial estimated mine life of 12 years. The extraction of the sulphide gold resource is planned for start-up in the third year after the oxide mine has attained commercial production. The current oxide mine plan is designed to improve the economics for accessing the adjacent sulphide resources.

As well as increasing the total resources, the 2007 drilling program identified three substantially larger anomalies under the pediments of the Borealis property similar in most respects to the one hosting the current resources. The results of the follow up Controlled Source Audio-Frequency Magnetotelluric (CSAMT) surveys, suggest that the initial drilling that discovered the very thick (up to 1,450 ft) zones of anomalous gold and alteration at several points in the Western pediments (reported November 2, 2007), may be on the margins of higher-grade gold systems. Thus a follow up drilling program is warranted.

The board of Directors of Gryphon Gold has authorized management to seek financing for the oxide mine, the development of the sulphide mine and the testing of the similar targets under the pediments in as cost effective manner as possible, including new equity, debt and/or industry partnerships.

ON BEHALF OF THE BOARD OF DIRECTORS OF GRYPHON GOLD CORPORATION

John L. Key, CEO

Full financial statements and securities filings are available on our website: http://www.gryphongold.com and http://www.sec.gov or http://www.sedar.com . For further information contact: John Key, CEO, by phone: 604-261-2229, or email at jkey@gryphongold.com

The new technical report will be filed with Canadian Securities regulatory authorities on SEDAR and made available on the Company's website at http://www.gryphongold.com by early October.

The Borealis property is described in the technical report(the "technical report") dated April 28, 2008 titled Technical Report on the Mineral Resources of the Borealis Gold Project Located in Mineral County, Nevada, U.S.A. and prepared in accordance with National Instrument 43-101 of the Canadian Securities Administrators ("NI 43-101"). The technical report describes the exploration history, geology and style of gold mineralization at the Borealis property.. Disclosure in this press release of mineral resources is based on the technical report. Details of the quality or grade of each category of mineral resources and key assumptions, parameters and methods used to estimate the mineral resources is included in the technical report. The report also includes a description of environmental and permitting matters.

The information in this press release as it relates to the Preliminary Assessment was reviewed by J.R. Danio, PE., Telesto Nevada Inc. of Reno, NV, a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. Mr. Danio is considered independent of Gryphon Gold for the purposes of NI43-101. The information in this press release as it relates to the mineral resources of the Borealis property was reviewed by Dr. R. Steininger of Reno, NV, a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. Dr. Steininger in a consulting geologist retained by Gryphon Gold, is the principal author of the technical report and is considered independent of Gryphon Gold for the purposes of NI43-101. This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to projections and expectations related to the results and projections contained in the PA, the timing of delivery of the scoping study, the expected mine life, recovery, capital and other costs and production of the described open-pit oxide heap leach mine, anticipated IRR, availability of capital for development, sensitivity to metal prices and ore grade, resource estimates, pediment exploration plans and other plans, projections, estimates and expectations. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined in our most recent financial statements and reports and registration statements filed with the SEC (available at http://www.sec.gov) and with Canadian securities administrators (available at http://www.sedar.com). In addition, the PA is the first in a series of development studies for the project assessing the potential viability of an open-pit oxide heap leach mining operation on the Borealis gold property using an estimate of metal prices based on historical and future metal prices. The operating and capital costs in the PA were developed to be reasonable estimates within industry benchmarks. There is no certainty that the results of the PA will ever be realized. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected.

All mineral resources have been estimated in accordance with the definition standards on mineral resources and mineral reserves of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in National Instrument 43-101, commonly referred to as NI 43-101. U.S. reporting requirements for disclosure of mineral properties are governed by the United States Securities and Exchange Commission (SEC) Industry Guide 7. Canadian and Guide 7 standards are substantially different. We do not undertake to update forward-looking statements, except as may be required by law.

* The Preliminary Assessment is preliminary in nature and includes inferred mineral resources. The economic viability of mineral resources that are not mineral reserves has not been and can not be demonstrated. Mineral resource estimates used in the PA include inferred resources. These estimates are considered too geologically speculative to have any economic considerations apply to them that would enable then to be considered as mineral reserves. In addition, there is no assurance that the PA will be realized and that further work will lead to reserves that can be mined economically. Mineral resources that are not mineral reserves have no demonstrated economic viability.

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