American Bonanza Gold Corp.
TSX : BZA
FRANKFURT : AB2

American Bonanza Gold Corp.

December 31, 2007 16:21 ET

American Bonanza Announces $1 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 31, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

AMERICAN BONANZA GOLD CORP. (TSX:BZA)(FRANKFURT:AB2) ("Company") is pleased to announce that it has completed, subject to the approval of the TSX, a non-brokered private placement of 2,500,000 units, at a price of $0.40 per unit for gross proceeds of $1,000,000. Each unit consists of one common share, which will be designated as a "flow-through share" for the purposes of the Income Tax Act (Canada), one common share which will not be designated as a flow through share, and one half of one transferable common share purchase warrant with each full warrant entitling the holder to acquire one common share at a price of $0.30 until June 30, 2009. No commission was paid on the financing.

All securities issued in connection with the private placement are subject to a four month hold period expiring April 30, 2008. The proceeds from this financing will be used primarily to fund ongoing exploration at Bonanza's Copperstone project in Arizona, USA and at its projects in Quebec and Ontario, and for general working capital.

About Bonanza

Bonanza acquires, explores and develops high-grade gold properties in North America, targeting areas with large gold endowments and stable political climates. Bonanza is advancing its flagship Copperstone gold property in Arizona and several other promising projects. For additional information about Bonanza please visit our website at www.americanbonanza.com.

AMERICAN BONANZA GOLD CORP.

Brian Kirwin, President & Chief Executive Officer

This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, including the likelihood of commercial mining and possible future financings are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include unsuccessful exploration results, changes in metals prices, changes in the availability of funding for mineral exploration, unanticipated changes in key management personnel and general economic conditions. Mining is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on the Company and the risks and challenges of its business, investors should review the Company's annual filing on Form 20F with the United States Securities Commission and its home jurisdiction filings that are available at www.sedar.com.

Contact Information

  • American Bonanza Gold Corp.
    Eugene Toffolo
    Investor Relations
    (604) 681-5755 or Toll Free: 1-877-687-5755
    or
    American Bonanza Gold Corp.
    Susan Wilson
    Corporate Communications
    (604) 688-7528
    Email: info@americanbonanza.com
    Website: www.americanbonanza.com