Gryphon Gold Corporation: Preliminary Assessment Supports Initial 46,000 ozs/yr Gold Production From Oxide Resources

VANCOUVER, BRITISH COLUMBIA, Sep 02 (MARKET WIRE) --
Gryphon Gold Corporation (TSX: GGN)(OTCBB: GYPH) is pleased to report the
positive results of an independent NI 43-101 compliant Preliminary
Assessment on the oxide portion of its 2.5 million ounce Borealis gold
resource in Nevada, as prepared by Telesto Nevada Inc. of Reno, NV in
collaboration with Knight Piesold Consulting & Co. of Denver, CO.

The current Borealis gold resource is in two distinct deposits:

- The Oxide deposit is a 725,000 oz gold resource consisting of 340,000
Measured and Indicated ounces (contained in 15.6 million tons grading
0.022 opt) and 385,000 Inferred ounces (contained in 26.8 million tons
grading 0.014 opt).

- The Sulphide deposit is a 1.8 million ounce gold resource with
1,085,000 M&I ounces (contained in 21.0 million tons grading 0.05 opt)
and 715,000 ounces of Infd (contained in 22.5 million tons grading 0.03
opt).

The independent Preliminary Assessment (PA) of the oxide resource
estimates a 46,000 oz/year open-pit oxide heap leach gold mine with an
initial mine life of 5 years. This initial mine plan provides for mining
of only 356,000 ozs (246,000 M&I and 110,000 Infd(1) contained in 11.7
million tons grading 0.04 opt) of the total 725,000 ozs oxide resource,
with estimated recovery of 232,000 ozs in the first 5 years on the
following schedule:

Period Ozs of gold
-------- -----------

1st year 38,000
2nd year 74,000
3rd year 72,000
4th year 40,000
5th year 8,000

The mine plan contemplated by this PA has been specifically designed
to optimize the cash flow, and the removal of the oxidized material
immediately above and adjacent to the Graben sulphide gold deposit, in
the initial three years of operation. This is intended to improve access
to the much larger 1.8 million oz sulphide resource (1,085,000 M&I,
715,000 Infd), and provide funding for its development.

Once this has been completed, an alternative oxide mining plan will be
prepared incorporating the remaining 369,000 ozs (94,000 M&I and 275,000
Infd(1)) of oxide resources. Drilling to extend the mine life is planned
to start once positive cash flow has been achieved. The inclusion of
these additional 369,000 ozs in the mine plan is expected to extend the
oxide mine's life provided feasibility is established for the mining of
this additional resource.

The PA incorporates the very latest costs, with fuel priced at its recent
peak. It is anticipated that, as the design and construction of the mine
are optimized, there will be some improvement on these results. The PA
used a gold price of US$775/oz, and a silver price of US$12.00/oz (65:1).

The PA accounts for all taxes, the cost of exercising the option to
reduce the royalty, and is based on 100-per-cent equity financing of the
development budget. The possible use of debt financing would further
improve the projected Internal Rate of Return (IRR). The PA represents an
as yet unoptimized design for the leachable gold deposit, with two-stage
crushing and conventional carbon adsorption extraction at 5,500 tons per
day. The base case details are:

- Average annual production of approximately 46,000 ounces of gold,

- Initial capital cost of US$19.2 million, which includes:

-- $14.7 million of fixed assets, (including a $1.0 million contingency
allowance),

-- $1.5 million of working capital, and,

-- $3.0 million for initial bonding.

- Cash operating cost of US$533/ounce of gold includes the royalty and
reclamation costs,

- Initial mine life of 5 years,

- After-tax internal rate of return (IRR) of 26%, with an estimated
payback period of 28 months,

- Sensitivity: each 1% change in the gold price changes the IRR by 1.7%,

- Life of mine strip ratio: 1.5:1,

- Ore grade: 0.04 opt (1.1 gpt) gold.

As a result of the very successful 2007 exploration program, whereby
Gryphon increased the total resources of the Borealis to 2.5 million
ounces (April 28, 2008) from the previously reported 1.8 million ounces
(a 39% increase), an Independent Scoping Study was commissioned to
determine the economic viability of mining these sulphide resources. The
Scoping Study of the 1.8 million ounce sulphide gold resource (with
1,085,000 M&I and 715,000 Infd) is anticipated to be completed by early
October.

It is expected to affirm the potential of a 100,000 oz/yr open-pit
sulphide gold mine with an initial estimated mine life of 12 years. The
extraction of the sulphide gold resource is planned for start-up in the
third year after the oxide mine has attained commercial production. The
current oxide mine plan is designed to improve the economics for
accessing the adjacent sulphide resources.

As well as increasing the total resources, the 2007 drilling program
identified three substantially larger anomalies under the pediments of
the Borealis property similar in most respects to the one hosting the
current resources. The results of the follow up Controlled Source
Audio-Frequency Magnetotelluric (CSAMT) surveys, suggest that the initial
drilling that discovered the very thick (up to 1,450 ft) zones of
anomalous gold and alteration at several points in the Western pediments
(reported November 2, 2007), may be on the margins of higher-grade gold
systems. Thus a follow up drilling program is warranted.

The board of Directors of Gryphon Gold has authorized management to seek
financing for the oxide mine, the development of the sulphide mine and
the testing of the similar targets under the pediments in as cost
effective manner as possible, including new equity, debt and/or industry
partnerships.

ON BEHALF OF THE BOARD OF DIRECTORS OF GRYPHON GOLD CORPORATION

John L. Key, CEO

Full financial statements and securities filings are available on our
website: www.gryphongold.com and www.sec.gov or www.sedar.com.

The new technical report will be filed with Canadian Securities
regulatory authorities on SEDAR and made available on the Company's
website at www.gryphongold.com by early October.

The Borealis property is described in the technical report (the
"technical report") dated April 28, 2008 titled Technical Report on the
Mineral Resources of the Borealis Gold Project Located in Mineral County,
Nevada, U.S.A. and prepared in accordance with National Instrument 43-101
of the Canadian Securities Administrators ("NI 43-101"). The technical
report describes the exploration history, geology and style of gold
mineralization 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 is included in the technical report. The report also includes a
description of environmental and permitting matters.

The information in this press release as it relates to the Preliminary
Assessment was reviewed by J.R. Danio, PE., Telesto Nevada Inc. of Reno,
NV, a Qualified Person as defined by National Instrument 43-101 of the
Canadian Securities Administrators. Mr. Danio is considered independent
of Gryphon Gold for the purposes of NI 43-101. The information in this
press release as it relates to the mineral resources of the Borealis
property was reviewed by Dr. R. Steininger of Reno, NV, a Qualified
Person as defined by National Instrument 43-101 of the Canadian
Securities Administrators. Dr. Steininger in a consulting geologist
retained by Gryphon Gold, is the principal author of the technical report
and is considered independent of Gryphon Gold for the purposes of NI
43-101. This press release contains "forward-looking information" which
may include, but is not limited to, statements with respect to
projections and expectations related to the results and projections
contained in the PA, the timing of delivery of the scoping study, the
expected mine life, recovery, capital and other costs and production of
the described open-pit oxide heap leach mine, anticipated IRR,
availability of capital for development, sensitivity to metal prices and
ore grade, resource estimates, pediment exploration plans and other
plans, projections, estimates and expectations. Such forward-looking
statements reflect our current views with respect to future events and
are subject to certain risks, uncertainties and assumptions, including,
the risks and uncertainties outlined in our most recent financial
statements and reports and registration statements filed with the SEC
(available at www.sec.gov) and with Canadian securities administrators
(available at www.sedar.com). In addition, the PA is the first in a
series of development studies for the project assessing the potential
viability of an open-pit oxide heap leach mining operation on the
Borealis gold property using an estimate of metal prices based on
historical and future metal prices. The operating and capital costs in
the PA were developed to be reasonable estimates within industry
benchmarks. There is no certainty that the results of the PA will ever be
realized. Should one or more of these risks or uncertainties materialize,
or should underlying assumptions prove incorrect, actual results may vary
materially from those anticipated, believed, estimated or expected.

All mineral resources have been estimated in accordance with the
definition standards on mineral resources and mineral reserves of the
Canadian Institute of Mining, Metallurgy and Petroleum referred to in
National Instrument 43-101, commonly referred to as NI 43-101. U.S.
reporting requirements for disclosure of mineral properties are governed
by the United States Securities and Exchange Commission (SEC) Industry
Guide 7. Canadian and Guide 7 standards are substantially different. We
do not undertake to update forward-looking statements, except as may be
required by law. (1) The Preliminary Assessment is preliminary in nature
and includes inferred mineral resources. The economic viability of
mineral resources that are not mineral reserves has not been and can not
be demonstrated. Mineral resource estimates used in the PA include
inferred resources. These estimates are considered too geologically
speculative to have any economic considerations apply to them that would
enable then to be considered as mineral reserves. In addition, there is
no assurance that the PA will be realized and that further work will lead
to reserves that can be mined economically. Mineral resources that are
not mineral reserves have no demonstrated economic viability.

Contacts:
Gryphon Gold Corporation
John Key
CEO
(604) 261-2229
Email: jkey@gryphongold.com
Website: www.gryphongold.com

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