American Bonanza Gold Corp

The Next Stage of Development

Bonanza's geologists are completing a final analysis of all data on the high grade gold deposits and new extensions to these gold deposits, along with the newly discovered massive sulfide target at the Fenelon Project. Planning has begun for a phase II drilling program that will follow up these positive exploration results beginning in 2006 and extending into early 2007. This drill program will be designed to further explore the recently identified extensions to the gold zones, and will follow up newly discovered high grade gold bearing structures within one kilometer of the Discovery Zone. This drilling campaign will also explore the newly discovered base metal massive sulfide system along strike and down dip where recent down hole and surface EM surveys indicate the presence of conductors that may represent massive sulfide deposits.