American Bonanza Gold Corp

The Next Stage of Development

In January, 2006, Wardrop Engineering Inc. ("Wardrop") completed a National Instrument 43-101 compliant resource estimate on the Taurus Project.

To further advance this exciting project, Wardrop has recommended a program consisting of in-fill drilling, additional metallurgical testwork including metallurgical dedicated drill holes, re-logging and re-sampling of pre-1995 core to ensure consistent lithological descriptions and finally an updated geologic model. The cost for this next phase of assessment at Taurus is estimated at approximately C$500,000. Upon completion of this work, Bonanza should be in a position to evaluate Taurus' economic viability.