SOURCE: Gold American Mining Corp.

Gold American Mining Corp.

November 16, 2010 09:00 ET

Gold American Mining Corp. Announces Preliminary Drilling Results at Guadalupe

RENO, NV--(Marketwire - November 16, 2010) - Gold American Mining Corp. (OTCBB: SILA) ("Gold American" and/or "the Company") is pleased to report that the first two drill holes of the 2,500 meter campaign at its Guadalupe Property (Zacatecas, Mexico) each successfully intersected multiple targets.

Drill hole No. 1 intersected the San Antonio and the La Esperanza veins. The San Antonio vein was intersected for 1.38 meters grading 0.24 g/t gold and 80.2 g/t silver, as well as 0.61% Cu, 1.25% Pb, and 2.5% Zn. The La Esperanza vein was intersected for 0.70 meters grading 60.5 g/t Ag, 0.17% Cu, 2.95% Pb and 2.25% Zn.

Drill hole No. 2 intersected the Santa Rosa and the Marcos de Oro veins, as well as a gold bearing zone associated with an increase in associated quartz/carbonate veinlets. The Santa Rosa vein was intersected for 2.25 meters averaging 0.60 g/t gold and 69.8 g/t silver. The Marcos de Oro vein was intersected for 1.2 meters grading 0.93 g/t gold and 19.3 g/t silver.

These two drill holes are the first to be reported from the approximately 2,500 meter program that is currently underway at Guadalupe. The following table presents highlight results:

Target   From   To   Width1   Au   Ag   Ag Eq2
    (m)   (m)   (m)   (g/t)   (g/t)   (g/t)
Drill Hole No. 1 - GPE1001
San Antonio Vein   347.25   348.63   1.38   0.24   80.2   95.8
La Esperanza Vein   350.15   350.85   0.70   -   60.5   60.5
Drill Hole No. 2 - GPE1002
Gold Zone   271.55   272.55   1.00   0.54   -   35.1
Santa Rosa Vein   281.30   283.55   2.25   0.60   69.8   108.7
    (incl) 282.65   283.55   0.90   1.03   54.0   121.0
Marcos de Oro Vein   293.05   294.25   1.20   0.93   19.3   79.8
 
1) Drill holes were planned to cut the mineralization as close to perpendicular as possible, however, true widths have not been calculated
2) Silver equivalent has been calculated using $1,300/oz gold and $20/oz silver (or a ratio of 65:1) and assumes recovery and NSR to be 100%

"We are extremely pleased with the results of the first two drill holes. The intersections reported show that gold and silver mineralization can be traced approximately 300 meters down dip and we are now ever more confident that there is considerable down-dip potential below that level," commented Mr. Johannes Petersen, Gold American's CEO. "If we consider that the largest operator in the area is currently drilling well below the 1,200 meter mark, we believe that further drilling along strike and at deeper levels is warranted," added Mr. Petersen.

Please note that at this stage of the exploration, the measurements provided on this press release don't represent true thickness measurements, which still need to be calculated and will be announced once the drilling program is completed and all data is analyzed. We encourage you to visit our website at www.gold-american.com for further information on our drilling program and for recent photographs of the operations.

THE GUADALUPE PROPERTY
The Guadalupe property contains two historically significant mines and is located in one of Mexico's oldest mining districts, roughly 5 miles north of the Fresnillo (Proaño) Mine, the world's richest underground silver mine, operated by Fresnillo plc. Roughly 6.8 miles to the southwest of Silver America's Guadalupe Property is the Juanicipio Joint Venture (JV) between MAG Silver Corp. (MAG) and Fresnillo plc, which is known as one of the world's highest grade undeveloped silver resources.

The Property contains greater than 20 known workings as well as two historic mines -- Santa Rita and San Antonio. Historic records containing references to the Santa Rita and San Antonio mines suggest that both mines were important and reached their height of production between 1910 and 1920 but were last in production in the 1980s. The property is completely surrounded by land controlled by Peñoles.

Highlight results from previous results include:

  • 1.00 g/t Au and 946.9 g/t Ag over 1.1m (including 1.83 g/t Au and 1,800.0 g/t Ag over 0.5 m)
  • 0.30 g/t Au and 622.0 g/t Ag from a mineralized dump
  • 0.59 g/t Au and 330.0 g/t Ag over 0.7 m
  • 5.35 g/t Au and 1,189.0 g/t Ag from a mineralized dump

ABOUT GOLD AMERICAN MINING CORP.
Gold American Mining Corp. is a publicly traded (OTCBB: SILA) precious metals exploration company focused on the aggressive, ongoing acquisition and exploration of holdings with rich gold and silver production potential. Based in Reno, Nevada, Gold American has developed a promising portfolio of international properties in regions marked by stable politics, sound economies and friendly business relations. For more information the Company and its projects, visit Gold American's website at www.gold-american.com.

ON BEHALF OF THE BOARD OF DIRECTORS,

Johannes Petersen, President

Forward-Looking Statements
The statements by our officers, and other statements regarding optimism related to the business, expanding exploration and development activities and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business. Words such as expects, anticipates, intends, plans, believes, sees, estimates and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Actual results could vary materially from the description contained herein due to many risk factors that affect the industry the Company operates in and other risk factors listed from time to time in the Company's Securities and Exchange Commission (SEC) filings under "risk factors" and elsewhere. The forward-looking statements contained in this press release speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.

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