1. All the permits are in place to begin mining gold; took 4 yrs, cost $5 million.
    
2. Within four months of construction of the leach pad, the company generates positive cash flow; at 8 months its generated $7.2 million.
    
3. Cost of production; $475 per ounce. Low-costs due to open pit, reworking existing material – 7 year supply of 377,000 ounce proven/probable gold ore generates 250,000 net ounces (@ $1200 per ounce, forecasting $250 million revenue).
    
4. 2.5 million ounces more of measured and indicated reserves – all (no. 3 & 4.) within one square of the 27.5 mile Borealis Property - vast amount more to be added to reserves near-term.
    
5. Phase 2 (next 10 months) doubles leach pad capacity, install carbon filtering plant, takes recovery from 40% to 75%.
    
6. Generates $22 million by 18th month. Gryphon expands existing pits and reserves – both proven, probable as well as measured and indicated – still within same 1 square mile area.
    
7. Unexplored West side of property to be mapped and drilled to ready for production; potential ore deposits are vast – yet not disclosed in 43-101 report. Mapping to begin in yr 2, setup for open pit and leach pad in yr. 3.
    
8. Released power point approved by TSX that gives revenue Outlook; averaged over 5 yrs, $42 million revenue, $19 million earnings; based on 150 million shares outstanding (86.4 million currently issued and outstanding), Co. would earn 10 cents per share!
    
9. Only junior gold mining company to step to production in 2010 – a very rare event!
    
10. Surrounded by major gold producers - Great Basin Gold (AMEX: GBG) just 3-miles to the South of Borealis Property; Kinross mine 100 miles to the East.

• Phase 1 Plan to Recover Gold Reserves at Low Operating Cost in the Near Term - The reserve of partially leached material will provide leach pad feed for nearly 7 months yielding gold recovery and cash flow to advance the project into in-situ production. Gold production is expected within 3 to 4 months after breaking ground.
  
• All Major Operating Permits are in Place - The Borealis Project's Modified Plan of Operations (U.S.F.S) #02-04-08 is approved, the N.D.E.P. Water Pollution Control Permit is approved, the N.D.E.P. Air Quality Permits is approved, the N.D.O.W. Artificial Pond Permit is approved, the Nevada State Water Rights is approved and developed, and the M.S.H.A. Safety Training Plan is approved. These represent all major operating permits needed and should significantly shorten the time required to go into production.
  
• Proven and Probable Gold Reserves total 377,356 ounces - Gryphon will focus initially on proven and probable reserves identified in its September 21, 2009 Independent Pre-Feasibility Study prepared in accordance with NI 43-101 of the Canadian Securities Administrators.
  
• Huge Potential for Future Production - The Central Zone of the Borealis Property is accredited with 1.4 million ounces of measured and indicated gold resources. There are another 1.1 million ounces of inferred gold bringing the total of measured, indicated and inferred gold resources to over 2.5 million ounces. Beyond this central zone, Gryphon Gold has identified 12 more targets on the huge property that have geophysical anomalies and favorable geology.
  
• Gold Production Plan - Gryphon estimates in its slide presentation dated 10-21-10 that it will recover 13,818 ounces in year 1, 35,441 ounces in year 2, 46,435 ounces in year 3, and 56,080 ounces in year 4. At gold prices of $1,300 an ounce, the Company would generate $17.9 million in revenue in year 1, $46 million in year 2, $60.3 million in year 3 and $72.9 million in year 4. These estimates do not include silver production which will add to revenues.
  
• Experienced Management Team - Gryphon is led by CEO John Key who possesses 32 years of extensive mining experience, considered one of the top engineers in the U.S. for placing mines into production. Steve Craig, VP of Exploration, has 25 years of mining experience focused in Nevada and is credited with discovery of Midway and Gemfield.

GYPF Research Resources

"The Road to Production." Powerpoint Presentation:
http://www.gryphongold.com/main/files/files/20101021_Presentation.pdf

About the Borealis Property's Geology: http://www.gryphongold.com/main/borealisgeology

Pictures of the Borealis Property:
http://www.gryphongold.com/main/photo/200

Videos, interviews and news on Gryphon Gold:
http://www.gryphongold.com/main/media

Company News:
http://www.gryphongold.com/main/newsreleases2010

Management Backgrounds:
http://www.gryphongold.com/main/management

Gryphon's Properties

Borealis Property, Nevada

In 1978, the Borealis gold deposit was discovered by S. W. Ivosevic (1979), a Houston International Minerals Company geologist (a subsidiary of Houston Oil and Minerals Corporation). The property was acquired through a lease agreement with the Whitney Partnership, which later became the Borealis Partnership, following Houston’s examination of the submitted property. Initial discovery of ore-grade gold mineralization in the Borealis district and subsequent rapid development resulted in production beginning in October 1981 as an open-pit mining and heap leaching operation. Tenneco Minerals, Inc. (“Tenneco”) acquired the assets of Houston International Minerals in late 1981 and continued production from the Borealis open-pit mine. Subsequently, several other gold deposits were discovered along the generally northeast-striking Borealis trend and mined by open-pit methods. Also, several small deposits were discovered further to the west in the outlying area known as Orion’s Belt (encompassing the Cerro Duro, Jaimes Ridge, and Purdy Peak deposits). Tenneco’s exploration in early 1986 discovered the Freedom Flats deposit and then in October 1986, Echo Bay Mines (“Echo Bay”) acquired the Nevada assets of Tenneco Minerals.

With the completion of mining of the readily available oxide ore in the Freedom Flats deposit and other deposits in the district, active mining was terminated in January 1990, and leaching operations ended in late 1990. All eight open-pit operations are reported to have produced 10.7 million tons of ore averaging 0.059 opt Au (Golden Phoenix Minerals, 2000). Gold recovered from the material placed on heaps was approximately 500,000 ounces plus an estimated 1.5 million ounces of silver. Reclamation of the closed mine began immediately and continued for several years.Echo Bay decided not to continue with its own exploration, and the property was farmed out as a joint venture in 1990-91 to Billiton Minerals, which drilled 28 reverse circulation (“RC”) exploration drill holes totaling 8,120 feet on outlying targets. Billiton dropped the property with no retained interest. Santa Fe Pacific Mining, Inc. (“Santa Fe Pacific”) then entered into a joint venture with Echo Bay in 1992-93 (Kortemeier, 1993), compiled data, constructed a digital drill hole database, and drilled 32 deep RC and core holes, including a number of holes into the Graben deposit. Santa Fe Pacific had success in identifying new sulfide-zone gold mineralization but terminated the joint venture because of reduced exploration budgets. Echo Bay completed all reclamation requirements in 1994, and then terminated its lease agreement with the Borealis Partnership in 1996.

In late 1996, J.D. Welsh & Associates, Inc. (“Welsh”) negotiated an option-to-lease agreement for the Borealis property from the Borealis Partnership and immediately joint-ventured the project with Cambior Exploration U.S.A., Inc. (“Cambior”). During 1996, Welsh drilled 11 auger holes (totaling 760 feet) into Heap 1 to determine if there was sufficient remaining gold to consider reprocessing the heap. During 1997, Cambior performed a major data compilation program and several gradient Induced Polarization (“IP”) surveys. In 1998, Cambior drilled ten holes, which succeeded in extending the Graben deposit and in identifying new zones of gold mineralization near Sunset Wash. Cambior terminated the joint venture in late 1998 because of severe budget constraints.

During the Cambior joint-venture period in late 1997, Golden Phoenix entered into an agreement to purchase a portion of the Welsh interest in the property. Welsh sold its remaining interest in the property to a third party, who in turn sold it to Golden Phoenix; therefore, in 2000 the company controlled 100 percent interest in the lease (Golden Phoenix Minerals, 2000). Golden Phoenix maintained the property during the years of low gold prices, compiled a database, validated the drill hole data, and developed new mineral resource estimates for the entire property.

In July 2003, the Borealis property was joint-ventured by Golden Phoenix with BMC, which is a wholly owned subsidiary of Gryphon Gold Corporation. BMC, the operator of the joint venture, originally controlled the property through an option agreement with Golden Phoenix whereby BMC could earn a 70 percent joint-venture interest in the property. BMC had the right to acquire its interest in the Borealis property with a combination of qualified expenditures on work programs, and/or making payments to Golden Phoenix, and/or delivering a feasibility study over a period of 5½ years beginning July 2003. In January 2005, BMC purchased 100 percent interest in the lease agreement, and Golden Phoenix surrendered its interest in the property.

Copper Basin Property, Idaho

Gryphon Gold controls the Copper Basin copper/silver prospect with 26 unpatented lode claims. These claims surround 10 patented, privately owned, lode claims that formed the center of the historic Copper Basin mining district. Gryphon’s claims cover all obvious copper mineralization outside of the patented claims.

Copper Basin is located in Custer County, Idaho and about 20 miles west of the town of Mackay. The district is known for high grade copper and silver mineralization from wide quartz veins. The property hosts both high-grade underground copper silver deposits and open pit low-grade copper oxide.

The district and Gryphon’s property has received very little modern exploration. The only recent work was done by Phelps Dodge Exploration in 1997 where they performed geologic mapping and sampling and drilled two holes. Highlights include a 25 foot serious of chip samples across several prospect pits and an adit portal, which averaged 5.7% copper and 10.3 opt silver. A 20 foot serious of chip samples perpendicular to the previous line averaged 1.86% copper. These assay results confirm the same underground mining production of the structures.

Two oriented soil lines yielded +200 ppm copper anomalies, which were tested by four drill holes. Hole 1 intersected 225 feet (50 to 275’) of 0.20% copper. Hole 2 intersected 235 feet (70 to 305’) of 0.23% copper and 35 feet (315 to 350’) of 1.79 ppm gold. Preliminary testing of surface samples showed a 95% leach recovery of the copper, with only moderate acid consumption.

More Borealis Property Information

Principal Assets

The Borealis Property, 27.5-square-miles located in the Walker Lane gold belt of western Nevada.

• 1.4 million ounces of measured and indicated gold resources and 1.1 million ounces of inferred gold resources have been accredited to the one-square-mile Central Borealis zone.
• Previous operators mined and heap leached over 600,000 ounces from this zone during their collective 10-year tenure.
• There are at least five other highly prospective zones that are currently being explored that have the potential to host significant gold resources

Mineral Deposits

The Borealis district contains multiple coalescing hydrothermal centers having alteration and mineralization characteristic of high-sulfidation systems. Gold deposits of the district typically have high-grade gold mineralization centrally located along steeply dipping structures and have lower-grade gold mineralization both surrounding the high-grade and commonly occurring in more permeable volcanic rocks in relatively flat-lying zones. The gold deposits with minor amounts of silver mineralization are hosted by Miocene andesitic flows, laharic breccias and volcaniclastic tuffs, which generally strike northeasterly and dip shallowly to the northwest. Pediment gravels cover the altered-mineralized volcanic rocks at lower elevations along the mountain front and there is potential for discovery of more blind deposits, similar to the Graben and the Freedom Flats deposits.

The surface "footprints'' of the high-grade pods found to date are rather small and can be easily missed with patterns of too widely spaced geophysical surveys and drill holes. Most of the drill holes on the property completed by prior operators, including the Graben deposit, are oriented vertically and therefore did not adequately sample the steep higher-grade zones. Drill-hole spacing and orientation have compounded the historical underestimation of grades within the district. In addition an indicated coarse gold component can best be captured with very careful sampling of drill cuttings and core and by collecting large samples.

Several drill holes to the north of Freedom Flats and west of Borealis encountered gold within the younger alluvium down drainage from known deposits. These holes trace a gold-bearing zone that, in plan, appears to outline a paleochannel of a stream or a gently sloping hillside that may have had its origin in the eroding Borealis deposit. The zone is at least 2,500 feet long, up to 500 feet wide, and several tens to 100 feet thick. At this point, it is unknown if this is a true placer deposit, an alluvial deposit of broken ore, or some combination of both. Additional drilling and beneficiation tests are needed to determine if an economic gold deposit exists in the alluvium.

Exploration

Since the late 1970s, considerable exploration has been completed at the Borealis Property, with the primary objective of finding near-surface deposits with oxide-type gold mineralization. Exploration work has consisted of field mapping, surface sampling, geochemical surveys, geophysical surveys and shallow exploration drilling. Only limited drilling and geological fieldwork have been completed in areas covered by pediment gravels, even though Freedom Flats and Graben were unknown blind deposits without surface expression when discovered beneath the younger pediment gravels.

Many geophysical surveys have been conducted by others in the Borealis district since 1978. In addition, regional magnetics, gravity maps, and other information are available through governmental sources. The most useful geophysical data from the exploration programs has been induced polarization (IP) (resistivity and chargeability) and aeromagnetics. A more detailed IP survey of the Central Borealis district was conducted in November and December 2005.

Areas with known occurrences of gold mineralization that has been defined by historical exploration drilling and has had historical mine production include: Borealis, East Ridge and Gold View, Northeast Ridge, Freedom Flats, Deep Ore Flats (also known as Polaris), Cerro Duro, and Jaimes Ridge. All of these deposits still have gold mineralization remaining in place, contiguous with the portions of each individual deposit that previously has been mined.

Discovery potential of the Borealis Property includes:

1. oxidized gold mineralization adjacent to existing pits
2. gold associated with sulfide minerals below and adjacent to the existing pits,
3. possible higher-grade feeder zones below surface-mined ore,
4. new oxide gold deposits at shallow depth in the pediment within the large land position, and
5. deeper gold-bearing sulfide mineralization beneath the hypothesized oxide deposits and elsewhere on the Property. Both oxide- and sulfide-bearing gold deposits exhibit lithologic and structural controls for the locations and morphologies of the gold deposits.

Gryphon Gold Resources

GYPH is gaining strength as fundamental factors point to a company that is preparing to go into gold production. The stock recently hit a high of .23 per share and since that time it has backed off to right at $.18 per share. To us it appears oversold at this point and the MACD indicator looks to have bottomed out and ready to turn positive while the Stochastics indicator has already turned positive preceding the MACD move. Also, if you look at the Accumulation/Distribution indicator there seems to be the start of a significant rampup in accumulation just within the last few trading days which is a positive signal before an upside move. If GYPH moves back up to and past the $.23 level there is basically no significant resistance up to around $.29 and if it breaks through that level it could run to $.50 or higher.

That is a little premature at this poing but with the gold this company is talking about and the fact they will be moving quickly into production toward the end of 2010 and into 2011 we think next year could be a breakout year for GYPH.

Put GYPH on your watchlist today and do your own homework fast on it. $.18 for this stock might not be around much longer.

Recent GYPH News:

October 21 - Gryphon Gold Road to Production

Gryphon Gold Corporation (TSX: GGN)(OTCBB: GYPH) is pleased to announce that the Board of Directors has developed a strategy to expedite the Borealis Heap Leach Project production timeline, assuming adequate financing and regulatory approval. The focus of this strategic direction will be to finalize certain critical data pertaining to the Freedom Flats Re-Leach and secure the financing for a scaled down version of the start-up of mining operation. The scaled down version is based on staging the capital requirements set out in the September 17, 2009 Pre-Feasibility Study which forms part of the technical report described below ("NI 43-101 Pre-Feasibility Study of the Mineral Resources of the Borealis Gold Project Located in Mineral County, Nevada, USA"). This direction would result in a scaled down production model that is projected to produce positive cash flow in a timeframe of three to four months after breaking ground.

Gryphon Gold Corporation has posted a presentation titled "The Road to Production" on its website at http://www.gryphongold.com/main/presentation. Management believes the "Road to Production" presentation outlines a viable straightforward low capital approach to using existing mined resources to produce cash flow and using that cash flow to finance the requirements to reach the full projected production goal of 50,000 oz./year Au as defined in the September 2009 43-101 Pre-Feasibility.

The "Road to Production" presents a plan that outlines management's strategic objectives and the path forward including timelines. The above referenced critical data is scheduled to be confirmed by late December 2010 which should allow for ground breaking in early 2011 and subsequent start of production in the 2nd quarter of 2011 with the specific dates dependent on completion of financing and the end of the winter hard freeze. Capital requirements to be secured for the completion of Phase 1 are projected to be in the range of $7 - $8 million.

"I am very pleased with our Board of Directors vote of confidence in management's plan to move the Borealis Oxide Heap Leach forward to production. The preliminary steps to production are expected to be handled in short order allowing us to seek the required financing for Phase 1 construction. This strategic direction should provide the opportunity to bring the Borealis to its full potential," stated John Key, Gryphon Gold CEO.

The "Road to Production" is based on upon a quick start to this permitted (all major permits are in place) resource by utilizing already mined materials and generating cash flow in a 4 month period from ground-breaking. The Phase 1 concept is to recover material that was partially leached and recover gold at a very low operating cost. The reserve of partially leached material will provide leach pad feed for nearly 7 months, yielding gold recovery and cash flow to advance the project into in-situ production. Gold recovery for the first 12 months will be gold to carbon with the gold recovery from the carbon being done on a toll basis.

In an eight month period two critical steps are expected to be taken: 1) construction of the A.D.R. plant will commence, and 2) in-situ ore will begin to be mined from the East Ridge pit subject to obtaining the required financing for Phase 1. Completion of the A.D.R. six months later will be the final mark to accomplishing the critical elements of the September 17, 2009 NI 43-101 Pre-Feasibility Study allowing for the achievement of the 50,000 ounces gold/year production benchmark.

ABOUT GRYPHON GOLD:

Gryphon Gold is a Nevada-focused gold exploration and development company. Its principal gold resource, the 1.4 million ounce (measured and indicated) and 1.1 million ounce (inferred) Borealis deposit, is located in the Walker Lane gold belt of western Nevada. The Borealis gold system is one of the largest known volcanic-hosted high-sulphidation gold bearing mineralized systems in Nevada.

The Borealis Property is described in a technical report dated September 17, 2009 and titled "NI 43-101 Pre-Feasibility Study of the Mineral Resources of the Borealis Gold Project located in Mineral County, Nevada, U.S.A." This report is prepared in accordance with NI 43-101 filed on www.sedar.com. This technical report describes the exploration history, geology, and gold resources 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 are included in the technical reports. The technical report also includes a description of environmental and permitting matters.

Gryphon Gold Corporation
Suite 711-675 West Hastings Street
Vancouver, BC
Canada V6B 1N2
Tel: +1.888.261.2229
Fax: +1.604.608.3262

John Key, CEO
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Investor Relations Contact:
Drew Farion
Phone: 1-888-744-8777
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Website:
http://www.gryphongold.com/

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