NEVADA AND THE WESTERN STATES — Golden Phoenix raises funds for exploration

With the help of IBK Capital, Golden Phoenix Minerals (GPXM-O) is raising up to US$3.5 million in equity financing, most of which will be used this year to fund exploration on its principal properties in Nevada and Alaska.

Golden Phoenix has earmarked as much as US$700,000 for a

2-phase drilling program at the Contact copper property in northeastern Nevada. The 34-hole program will evaluate the oxide potential of the Banner zone, which the company believes could hold up to 2 billion lbs. of the red metal in both surface and deep mineralization.

The Contact property contains a known resource of 37 million tons grading 1.57% copper, as well as a significant silver component.

In Alaska, Golden Phoenix expects to spend a total of US$1.5 million on three advanced gold properties. At the Richardson

property, the company plans a

2-phase program with a budget of US$800,000. The work is expected to facilitate the calculation of a preliminary resource estimate for at least one mineralized area at Richardson.

The company plans a US$250,000 program of mapping, sampling and core drilling on the grassroots Uncle Sam project in Alaska, near Sumitomo and Teck’s Pogo deposit. Golden Phoenix recently staked an additional 2 sq.

miles at Uncle Sam.

Elsewhere in Alaska, the company has earmarked US$440,000 for reverse-circulation drilling at the Circle property, northeast of Fairbanks.

And in northeastern California, Golden Phoenix plans to spend US$400,000 to drill 20 holes on the High Grade property.

Meanwhile, Golden Phoenix

and joint-venture partner Cambior (CBJ-T) have started the first phase of a 10-hole drilling program at the Borealis mine in western Nevada. To date, four holes have tested new oxide and sulphide targets delineated during last year’s exploration program. Overall, the drilling will focus on the Graben-Freedom Flats area, which contains a sulphide resource of 205,000 oz.

gold in 930,000 tons grading 0.22 oz. gold per ton.