American Bonanza Gold Corp.
TSX : BZA

American Bonanza Gold Corp.

January 12, 2011 08:25 ET

American Bonanza Gold Corp.: Resumption to Trade and Equity Financing Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 12, 2011) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES

American Bonanza Gold Corp. (TSX:BZA) ("Bonanza" or the "Company") announces that, further to its press release dated January 11, 2011 in connection with the order issued by the British Columbia Securities Commission (the "BCSC") on December 20, 2010 cease trading the Company's securities (the "Cease Trade Order"), the Executive Director of the BCSC issued an order revoking the Cease Trade Order on January 11, 2011. The Director of the Ontario Securities Commission (the "OSC") also issued a temporary order cease trading the Company's securities on December 24, 2010, which expired on January 8, 2011 and has not been otherwise extended by the OSC. The Company's common shares are expected to resume trading at the open of the market on the Toronto Stock Exchange on January 12, 2011.

Further to its press release dated December 8, 2010, the Company is pleased to announce that it will be proceeding with its previously announced offering of 44,000,000 units (the "Units") at a price of $0.35 per Unit to raise aggregate gross proceeds of up to $15,400,000 (the "Offering"). The terms of the Offering are further described in the Company's December 8, 2010 press release and the Company's preliminary short form prospectus dated and filed on SEDAR on December 8, 2010. The Company's objective is to complete the Offering on or before January 28, 2011. Closing of the Offering is subject to the filing by the Company of a final short form prospectus (the "Final Prospectus") satisfactory to the BCSC and other Canadian Securities Regulators, the issuance of a receipt for the Final Prospectus, and completion of the entire Offering.

About Bonanza

Bonanza is working to re-activate mining at the preproduction-stage Copperstone gold mine in Arizona. Bonanza has 130 million shares outstanding and has no debt. For more information please visit Bonanza's website at www.americanbonanza.com.

AMERICAN BONANZA GOLD CORP.

Brian Kirwin, President & Chief Executive Officer

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 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.

Cautionary Statement Regarding "Forward-Looking" Information

Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as "expects", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond Bonanza's control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.

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