Bandera Gold Ltd.

Bandera Gold Ltd.

July 29, 2009 17:27 ET

Bandera Receives Report on Belmira Project

EDMONTON, ALBERTA--(Marketwire - July 29, 2009) - Bandera Gold Ltd. (TSX VENTURE:BGL) ("Bandera") through its subsidiary in Colombia, Nueva California S.A. were to resume exploration activities at its Belmira gold property 45km northwest of Medellin. Earlier programs had shown the existence of one major gold bearing structure and a possible parallel vein 1 km to the north east. As well, several cross structures were identified as being gold bearing.

Bandera is pleased to announce that Bandera has received a final report entitled "Geological Assessment, Belmira Project", dated June 30, 2009 authored by Project Manager and senior geologist, Sr. Julio Mendez - Garcia. This report was reviewed in detail by Sr. Baltazar Solano - Rico, President of Behre Dolbear de Mexico, S.A. de C.V. who is responsible for review of all geological exploration reports completed at Belmira and is a Qualified Person as defined by NI 43-101.

The Report details the surficial geological mapping, sampling, trenching, assaying, soil sampling (through auger drill holes), stream sediment sampling, old artisan excavation, mapping and sampling etc that was conducted throughout the claims optioned by Nueva California. These studies allowed our geologists to create a Mineralization Zoning Model, which is being used to best site the next stage of exploration drilling.

While management is still digesting the body of the report which is written to NI 43-101 standards, we would like to share with you some of the highlights of that report.

1. Rock sampling, soils geochemical survey and stream sediments survey (pan concentrates) results, demonstrate that gold mineralization is distributed widely at the Project area.

2. At Filandia vein (Filandia, Reventón and Buenaventura areas) the exploration potential has been estimated in the order of 1.0 Mtonnes that would allow for the planning of a small underground mine operation. According to economical parameters and preliminary estimates made, mineral resources to be defined should have a grade in the order of 10 gpt Au to be of economic interest.

3. In order to verify this exploration potential and define mineral resources, a 4,000 m diamond drilling program, distributed in 16 holes, was elaborated. The areas to be drilled are Filandia, Reventón and Buenaventura. One "wildcat" drill hole was programmed at the La Ilusión area, susceptible to contain a low grade-high tonnage deposit for a potential open pit operation. The budget cost for this Exploration Phase is estimated to be approximately US$1.2 million.

4. The earlier identified major NW-SE structure "Veta Filandia" has been identified over a strike length of 10 kilometers and where out cropping, varies from 0.75 to 4.25 meters. A Second semi parallel structure known as the "Veta Atalaya" was identified to the north east of the Filandia vein and from soils sampling over its buried trace would appear to have a similar strike length. A significant number of cross structures were identified and explored with some returning 7 to 22 g/t over narrow widths.

To view two photographs that show a "Pan Concentrate" sample and "Panned" gold from the project site, please click on the following link:

We remain totally committed to both our properties - Mexico and Colombia. It is our intention to be operators of successful mines in both countries and we consider our properties to be in prime locations to enable this to occur as partly evidenced through the above exploration results.

On behalf of the Board

Kelvin Williams, CEO

Information provided herein contains forward-looking statements. The reader is cautioned that assumptions used in the preparation of such information, which are considered reasonable by Bandera at the time of preparation, may prove to be incorrect. Actual results achieved will vary from the information provided and the variations may be material. There is no representation by Bandera that actual results achieved will be the same in whole or in part as those indicated in the forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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