American Bonanza Gold Corp.
TSX : BZA
FRANKFURT : AB2

American Bonanza Gold Corp.

November 19, 2007 09:00 ET

American Bonanza Announces Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 19, 2007) -

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

American Bonanza Gold Corp. (TSX:BZA)(FRANKFURT:AB2) ("Bonanza") announces it has negotiated, subject to regulatory approval and formal documentation, a private placement of units through Dundee Securities Corporation (the "Agent"). The private placement consists of up to 5,000,000 units of Bonanza at a price of $0.40 per unit for gross proceeds of $2,000,000. Each unit is comprised 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 for a period of 18 months after the closing date.

The Agent will be paid a cash fee equal to 8% of the total gross proceeds raised in the private placement. In addition, the Agent will receive compensation warrants exercisable for non-flow-through common shares of Bonanza equal in number to 8% of the number of flow-through and non-flow-through common shares sold under the private placement. The compensation warrants will be exercisable at a price of $0.30 per compensation share for a period of 18 months after the closing date.

All securities issued in connection with the private placement will be subject to a minimum four month hold period. The private placement is subject to the approval of the TSX.

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.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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 properties.

Bonanza is a gold company engaged in the acquisition, exploration and development of high-grade gold properties located in the United States and Canada, in areas chosen for their large gold endowments and stable political climates. Bonanza is advancing its high grade Copperstone gold property in Arizona and several other promising projects. Bonanza is well financed with no long-term debt. 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

  • Longview Capital Partners Incorporated
    Attention: Eugene Toffolo
    (604) 681-5755 or Toll Free: 1-877-687-5755
    or
    American Bonanza Gold Corp.
    Susan L. Wilson
    Corporate Communications
    (604) 688-7508
    Email: info@americanbonanza.com
    Website: www.americanbonanza.com