Gold Canyon Resources Inc.
TSX VENTURE : GCU

Gold Canyon Resources Inc.

May 30, 2006 15:25 ET

Gold Canyon Closes Private Placement for US$331,440

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 30, 2006) - Gold Canyon Resources Inc. (TSX VENTURE:GCU) ("Gold Canyon" or "the Company") is pleased to announce it has closed the non-brokered private placement originally announced on May 4, 2006 and has issued 920,667 common share units (the "Units") at $0.40 (US$0.36) per Unit for gross proceeds of $368,266.80 (US$331,440.00). Each Unit consists of one common share in the capital of the Company and one half of one non-transferable common share purchase warrant, each whole warrant entitling the holder to acquire one additional common share at a price of $0.50 (US$0.45) per share until May 29, 2008. Gold Canyon paid aggregate finders' fees of $16,800.00 to various eligible persons, of which $12,600.00 was paid in cash and $4,400.00 was satisfied by the issuance of 11,000 Units at a deemed price per Unit of $0.40. The private placement was denominated both in US and Canadian dollars using the exchange rate of 1.11 (US$0.36 equals CDN$0.40), being the nominal noon rate of the Bank of Canada on May 2, 2006.

All securities will be subject to a four month hold period expiring on September 30, 2006 in accordance with applicable Canadian securities law and the policies of the TSX Venture Exchange. The securities have not been registered under the United States Securities Act of 1933, as amended or the securities laws of any state of the United States and may not be sold, transferred or assigned in the absence of an effective registration statement for the securities under applicable securities laws, or an available exemption from the registration requirements of those laws.

The net proceeds of the offering will be used for additional work on Gold Canyon's Cordero Gallium Project.

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.

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

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