SOURCE: Gold American Mining Corp.

Gold American Mining Corp.

September 20, 2010 09:00 ET

Gold American Mining Corp. Appoints Drilling Contractor for Guadalupe Property

RENO, NV--(Marketwire - September 20, 2010) -  Gold American Mining Corp. (OTCBB: SILA) ("Gold American" and/or "the Company") is pleased to announce that Tecmin Servicios S.A. de C.V. has been appointed to carry out the 2010 drilling program at the Guadalupe Property, Zacatecas, Mexico.

Drilling at Guadalupe is scheduled to begin in the second week of October with a program that is anticipated to total approximately 2,500 meters. The drilling will target the down dip extensions of the more than 6 veins that have been identified on the property to date as well as test two geophysical anomalies identified in the recently completed geophysical survey (see news dated August 30, 2010).

Workings at the Santa Rosa and San Antonio veins, located in the south of the property, are known to extend at least 270 vertical meters. The drill holes planned will target these vein systems approximately 400 meters below the surface. This will also test a coincident strong Induced Polarization chargeability anomaly that was unknown to the Company prior to optioning the project.

"The results of our initial work on the Guadalupe property have increased our optimism regarding its potential. We believe that Guadalupe has excellent potential to develop into a top-tier mineral deposit and look forward to initiating drilling operations," commented Mr. Johannes Petersen, Gold American's CEO. "We selected Tecmin Servicios to drill Guadalupe for their experience in the area and their outstanding credentials, which include working for a number of important mining companies such as Fresnillo plc," added Mr. Petersen.

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 (either through Fresnillo or other subsidiaries and partners).

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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