CARSON CITY, NEVADA--(Marketwire - April 26, 2011) - Gryphon Gold Corporation (News - Market indicators)(OTCBB:GYPH) (the "Company") announces that a copy of the NI 43-101 Pre-Feasibility Study update of the Mineral Resources of the Borealis Gold Project located in Mineral County, Nevada, USA as at April 25, 2011 (the "2011 Study") has been filed on the SEDAR website, www.sedar.com.

The NI 43-101 compliant study, completed by Telesto Nevada Inc., examined the proposed oxide heap leach open pit operation at the Company's wholly owned Borealis Project located in the Walker Lane Gold Belt of western Nevada.

"Gryphon's long-term plan for the Borealis property has always been to advance the oxide heap leach to generate the cash flow required to fully explore one of the premier exploration targets in Nevada. The 2011 Study reflects a more conservative view of the near-term production than the 2009 Pre-Feasibility Study. This Pre-Feasibility Study illustrates that the project has a $99.7 million gross profit over the initial mine life at $1,200 gold. Our intent is to aggressively advance the exploration to achieve additional oxide heap leach reserves while moving to fully explore the potential to increase the sulphide gold resources in the Central Borealis and begin to aggressively explore the geophysical targets in the Western Pediments," said John L. Key, President and CEO of Gryphon Gold.

The principal changes reported in the 2011 Study compared to the "Pre-Feasibility Study of the Mineral Resources of the Borealis Gold Project located in Mineral County, Nevada, USA, Revised and Restated as at September 17, 2009" (the "2009 Pre-Feasibility Study") and the "NI 43-101 Technical Report on the Mineral Resources of the Borealis gold Project located in Mineral county, Nevada, USA dated April 28, 2008" (the "2008 Technical Report") are:

• An increase in the number of measured and indicated oxide and mixed oxide in-situ gold (an increase of 227,500 oz) and silver (an increase of 1,459,800 oz) resources.
   
• An increase in the Proven and Probable oxide and mixed oxide gold (an increase of 21,200 oz) and silver (an increase of 287,320 oz) ounces coming from the heaps and dumps.
   
• A decrease in the aggregate Proven and Probable oxide and mixed oxide contained gold (a decrease of 8,556 oz) and silver (a decrease of 1,023,700 oz) reserves.
   
• A decrease in the average grade of oxide and mixed oxide resources and reserves for both gold and silver.
   
• An increase in cash operating costs.
   
• The phasing of the construction costs into two stages, with estimated initial project costs of $12.7 million and total estimated project costs of $23.0 million.
   
• An increase in the gold price used to determine the reserves from $800 to $1,200 per oz of gold.

The current Resources for the Borealis are illustrated in the following table.

1. The proven and probable Gold Reserves are included in the Measured and Indicated Oxide and Mixed Oxide Resources listed in this resource table.
2. See Cautionary note to U.S. investors concerning estimates of Reserves and Resources below.

The Proven and Probable reserves of 368,800 ounces of gold gives the Borealis Oxide Heap Leach a six-year mine life producing an annual average of 42,100 gold equivalent ounces. Highlights are as follows:

• Average annual production of over 42,000 oz gold equivalent.
• Low initial construction cost of $12.7 million using a 10% contingency.
• Average cash operating cost of $851 per oz of gold over the life of the mine.
• After-tax Net Present Value, at 10%, of US $18.9 million, IRR of 118% and a payback of 14 months based on US$1,200 per ounce price of gold.

No inferred resources were included in the economics of this study. The inferred oxide resources (totaling 408,200 oz gold) represent potential to extend the mine life beyond the six-year plan examined in the Pre-Feasibility Study, if such inferred resources are confirmed as reserves as a result of additional exploration work. Future exploration will also provide opportunities for further resource expansion as the Borealis Property covers approximately 23.5 square miles of favorable Nevada geology.

John Welsh P.E., Jon Brown, CPG, Doug Willis, CPG, Dr. Thom Seal P.E., and Daniel Kappes, "qualified persons" as defined in National Instrument 43-101 of the Canadian Securities Administrators ("NI 43-101"), have assumed responsibility of their respective sections/subsections of the technical information relating to the Borealis Property referred to in this press release.

This press release contains "forward-looking statements" and "forward-looking information" within the meaning of Canadian and United States securities laws, which may include, but is not limited to, statements with respect to estimates of mineral reserves and resources, the Company's long term plan for the Borealis property, projected gross profit over the initial mine life, anticipated exploration at the Borealis property, estimated average annual production, estimated construction and operating costs, estimated After-Tax Net- Present Value, IRR, and payback period . Such forward-looking statements and forward-looking information reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, risks related to mineral reserves and resource estimates, risks and uncertainties related to construction timing and costs, risks related to production costs, risks related to fluctuations in supplies and equipment, risk related to our ability to obtain adequate financing, risks related to fluctuating gold prices, risks related to the inherently hazardous nature of mining –related activities, and the risks and uncertainties outlined under the section headings "Forward-Looking Statements" and "Risks Factors" in our annual report on Form 10-K, as filed with the SEC and Canadian securities regulatory authorities on June 28, 2010, under the section heading "Risk Factors" in our most recent quarterly report on Form 10-Q, as filed with the SEC and Canadian securities regulatory authorities on February 11, 2011, and in our most recent financial statements, reports and registration statements filed with the SEC (available at www.sec.gov) and with Canadian securities regulatory authorities (available at www.sedar.com). We do not undertake to update forward-looking statements or forward-looking information, except as may be required by law.

The Borealis property is described in the technical report (the "2011 Pre-Feasibility Study") titled "43-101 Pre Feasibility Study update of the Mineral Resources of the Borealis Gold Project Located in Mineral County, Nevada, U.S.A." as at April 25, 2011 prepared in accordance with National Instrument 43-101 of the Canadian Securities Administrators ("NI 43-101"). The 2011 Pre-Feasibility Study 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 2011 Pre Feasibility Study. The 2011 Pre-Feasibility Study also includes a description of environmental and permitting matters.

Cautionary Note to U.S. Investors concerning estimates of Reserves and Resources: This press release and the Pre-Feasibility Study referred to in this press release use the term "Proven and Probable Reserves" and "Mineral Reserves". We advise U.S. investors that while these terms are Canadian mining terms as defined in accordance with Canadian National Instrument 43-101 ("NI 43-101") – Standards of Disclosure for Mineral Projects and the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") – CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended, such definitions differ from the definitions in U.S. Securities and Exchange Commission ("SEC") Industry Guide 7. Under SEC Industry Guide 7 standards, a "final" or "bankable" feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. U.S. investors are cautioned not to assume that any part or all of mineral deposits in this category will ever be converted into SEC Industry Guide 7 reserves. This press release, the Pre-Feasibility Study, the 2009 Pre-Feasibility Study and the 2008 Technical Report referred to in this press release also use the terms "Measured Resources", "Indicated Resources", "Measured & Indicated Resources" and "Inferred Resources." We advise U.S. investors that while these terms are defined in and required by Canadian regulations, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. "Inferred Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or pre-feasibility study, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into Guide 7 reserves.