American Bonanza Gold Corp

Work Program and Budget

The next phase of exploration work for the Noyon Gold Project should focus on the Noyon claim-block portion of the property. Cyprus believed that the quality of the Noyon-claims targets surpassed those of the Northway claims and that a successful exploration program on the Noyon portion could add sufficient resources to the overall project to develop an economic operation. A two-phase exploration program is recommended for the Noyon claim-block portion of the project. Phase I on the Noyon portion, which was initially recommended by Cyprus, will consist of a six-hole diamond-drilling program that would test the main, high-priority gold targets. These targets have been chosen on the basis of coincident geochemical and geophysical anomalies overlying interpreted volcanic-sediment contacts. The Phase II program will be contingent upon the results of the Phase I program.