Gold Canyon Resources Inc.
TSX VENTURE : GCU

Gold Canyon Resources Inc.

May 16, 2006 13:33 ET

Gold Canyon Intersects Fault Offset of East Extension Gold Mineralization and Prepares for Summer Field Programs at Springpole

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 16, 2006) - Gold Canyon Resources Inc. (TSX VENTURE:GCU) (the "Company") is pleased to announce it has received the results from the remaining holes of its 2006 Winter drilling program at the Company's Springpole Gold Project located in the Red Lake Mining District of Ontario, Canada. Management continues to be very encouraged by the application of their alteration targeting model for predicting extensions to known zones, discovering off-sets and identifying new highly prospective zones. The summer exploration program scheduled to commence in June 2006 will include additional 3D computer modeling of all known mineralization, field sampling of these zones, MMI soil geochemistry in new areas targeted by the alteration model and exploration of new claims recently acquired by the Company.

East Extension Zone (EEZ), "Core Area"

Drill hole BL06-361 was drilled in the EEZ to test down dip projections of mineralization within the alteration model. This hole tested the extension of the target zone low-grade envelope returning 6.0 feet with an average grade of 0.05 opt Au from 287.9 to 293.9 feet. This intersection was in the hanging wall of a significant 33 foot zone of EEZ silicified breccia averaging 12% pyrite, however, only weakly anomalous gold.

Drill holes BL06-362 to BL06-364 did not intersect any gold of significance. These holes were drilled further along strike to the east but not within the area of the alteration model.

Drill hole BL06-365 targeted a discrete magnetics anomaly well to the south-east of the EEZ and intercepted only weak gold mineralization in Mafic Volcanics.

Hole BL06-366 and BL06-367 targeted 100 meter westerly and easterly projections of mineralization encountered in Hole BL05-338 along an inferred structural trend evidenced by geophysics and topography. Hole BL06-366 intersected 39 feet of typical EEZ silicified breccia, including 15 feet of 0.05 opt gold. These results support the structural interpretation of the alteration model and warrant additional drilling. Hole BL06-367 was drilled outside of the alteration model, in an area of weakening geophysical response. The results for BL06-367 were negative in this area.

Holes BL06-368 and BL06-369 were drilled 650 and 350 meters easterly of the EEZ along geophysical anomalies to test for possible easterly extensions of EEZ mineralization. Both holes intersected moderate to strong silicification and iron carbonate alteration. No significant gold mineralization was intersected in these holes.

Hole Bl06-370 was drilled southwards as a scissors hole to check for mineralization not associated with the EEZ structural model. As such this hole was drilled sub-parallel to the EEZ structural fabric, no significant mineralization was detected.

Round Pond

Hole BL06-371 targeted an intense circular magnetic anomaly under Round Pond. The magnetic anomaly was explained as a significant block of highly magnetic Banded Iron Formation, possibly a roof pendant. No gold of significance was intersected.

Long Skinny Pond

Hole Bl06-372 targeted the centre of a weak MMI anomaly along an inferred east-west structural zone as evidence by airborne geophysics and a distinct topographic anomaly within the Long Skinny Pond deformation zone. No significant alteration or gold mineralization was encountered.

Hole BL06-373 targeted the westward extension of the Long Skinny Pond deformation zone near an area of strong surface alteration. Significant silicification and sericitization were intersected, and portions of the hole contained abundant flourite in what is believed to be an extension of the "Flourite Zone", no gold of significance was encountered.

Summer Exploration Programs

The exploration team is expected at the property by June 2006. The alteration model developed by the team will be used to direct exploration in areas that have received little, if any, previous work. Some of this work will target new gold mineralization discovered during the winter 2006 drill program, as well as the follow-up of numerous targets discovered during the 2005 field season. The team will also start exploration on the Wagner Bay claims to the west.

Sampling, assaying and quality control

Core is split using diamond saws, with one half sent to Accurassay Laboratories of Thunder Bay, Ontario for preparation and analyses, the other half is stored on site. Assaying procedures used include fire assay with atomic absorption finish. Samples assaying greater than 2000 ppb Au receive fire assay with gravimetric finish.

Quality control programs include the use of duplicates, standards and internal and external check assaying. Certified sample standards provided by Ore Research & Exploration Pty Ltd., are submitted with the normal sample stream at a rate of 1 in 30. Check samples are being sent to Chemex Laboratories for external check assay.

Mr. Garry Smith, P. Geo is the Company's qualified person on the Springpole project as defined by National Instrument 43-101. The drilling program was conducted under Mr. Smith's supervision. All results reported herein were reviewed and verified by Mr. Smith.

Technical Report

The Company is incorporating the results of its 2006 winter drilling program in the technical report currently being prepared by P& E Engineering of Toronto, Ontario. The Company anticipates completion of the technical report in June 2006. The technical report will contain a resource estimate for all drilling to date at Springpole.

About Gold Canyon Resources Inc.:

Gold Canyon is engaged in the acquisition and exploration of mineral and precious metals properties. The Company controls a 100% interest in the Springpole Gold Project, and the Favourable Lake Poly-metallic Project, both in the Red Lake Mining District of Ontario, Canada. Through its wholly owned US subsidiary, Gold Canyon Resources USA Inc., the Company controls a 100% interest in the Cordero Gallium Project situated in Humboldt County, Nevada, U.S.A. Additional information can be found on the Company's website: http://www.goldcanyon.ca.

Robert Carrington, Chief Executive Officer & Director

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities of the Company have not been 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.

Cautionary Note to United States Investors Concerning Forward Looking Statements - The future conduct of the Company's business and the feasibility of its mineral exploration properties are dependent upon a number of factors, and there can be no assurance that the Company will be able to conduct its operations as contemplated. Certain statements contained in this release using the terms "may", "expects to", "projects", "estimates", "plans", and other terms denoting future possibilities, are forward-looking statements in accordance with the Private Securities Litigation Reform Act of 1995. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks that are beyond our ability to predict or control and which may cause actual results to differ materially from the projections or estimates contained herein. The risks include, but are not limited to, the risks described in the above press release; those risks set out in the company's disclosure documents and its annual, quarterly and current reports; and the other risks associated with start-up mineral exploration operations with insufficient liquidity, and no historical profitability.

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