Gold Canyon Resources Inc.
TSX VENTURE : GCU

Gold Canyon Resources Inc.

April 06, 2006 15:01 ET

Gold Canyon Closes Second Tranche of Private Placment for Cdn$474,099; Gold Canyon Closes Flow-Through Private Placment for Cdn$750,000

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 6, 2006) - Gold Canyon Resources Inc. (TSX VENTURE:GCU) ("Gold Canyon" or "the Company") is pleased to announce it has closed the second tranche of its non-brokered private placement originally announced on February 13, 2006 and on Friday, March 31, 2006. The second tranche closing included 1,634,825 common share units for gross proceeds of $474,099.25. Each such unit consists of one common share in the capital of the Company and one non-transferable common share purchase warrant, each whole warrant entitling the holder to acquire one additional common share at a price of $0.46 (US$0.40) per share until March 31, 2008. All securities issued with respect to the second tranche will be subject to a four month hold period expiring on August 1, 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. With respect to the second tranche closing, Gold Canyon paid a finders' fee of (US)$22,000.00 in cash to Shields & Co. of New York, New York.

The Company is also please to announce that it has closed the non-brokered flow-through private placement originally announced on March 27, 2006. Yesterday's closing included 1,875,000 "flow-through" units for gross proceeds of $750,000. Each such unit consists of one "flow-through" common share and one half of one non-transferable non-"flow-through" share purchase warrant of the Company, each whole warrant entitling the holder to acquire one additional common share at a price of $0.50 per share until October 5, 2007. All securities issued with respect to the flow-through placement will be subject to a four month hold period expiring on August 6, 2006 in accordance with applicable Canadian securities law and the policies of the TSX Venture Exchange. With respect to the flow-through placement closing, Gold Canyon paid a finders' fee of $60,000.00 in cash to Max Capital Markets Ltd. of Toronto, Ontario.

The net proceeds of the second tranche will be used for additional work on Gold Canyon's Springpole Gold Project and Cordero Gallium Project and for general corporate purposes. The funds from the flow through offering will be used for additional work on the Springpole Gold Project with respect to eligible Canadian Exploration Expenses ("CEE") as defined in subsection 66.1(6) of the Income Tax Act (Canada).

Gold Canyon is engaged in the acquisition and exploration of mineral and precious metals properties and currently owns the Springpole Gold Project, the Favourable Lake Poly-metallic Project, both in the Red Lake Mining District of Ontario, Canada and the Cordero Gallium Project 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

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

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