Gold Canyon Resources Inc.
TSX VENTURE : GCU
PINK SHEETS : GDCRF

Gold Canyon Resources Inc.

September 24, 2010 14:59 ET

Gold Canyon Negotiates New Lease; Amends Net Smelter Royalties Related to Certain Springpole Gold Project Claims

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 24, 2010) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINK SHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce that it has entered into a new twenty-one year lease agreement with the owner of ten (10) patented claims forming part of the Company's Springpole Gold Project in the Red Lake Mining District of Ontario, Canada for the purposes of facilitating the further exploration, development of and, if deemed economically viable, production from such patented claims.

The new lease replaces the original 1986 lease agreement between the land owner and Gold Fields Canadian Mining Limited (a predecessor of interest by way of assignment to Gold Canyon) and series of amendments to that original agreement. Gold Canyon continues to have the right to explore and, when and if deemed appropriate, commence commercial production from the ten patented claims (KRL No. 11233, 11234, 11235, 12896, 12897, 12898, 12899, 12900, 12901 and 13043) subject to the annual payment of advanced royalties. These patented claims are subject to a 3.0% net smelter royalty ("NSR") in favour of the landowner (reduced from a 5% NSR as set out in the original agreement). This royalty can be bought down to 1% by Gold Canyon at any time upon payment of $1.0M per 1% royalty to the landowner. All previous payments made under the original agreement to date will not be carried forward under the new lease, regardless of whether designated as advance royalty paid on account of the properties subject to the original agreement.

"With our recent re-negotiations of the NSRs on the overall Springpole Gold Project, the NSRs now range up to 3% with provision to be able to reduce to 2% or less. The reduction of the royalty on these ten patented claims is very significant, because part of this claim block encompasses the Portage Zone where Gold Canyon is presently expanding a discovery through drilling," states Dr. Quinton Hennigh, technical advisor to Gold Canyon.

Quinton Hennigh, Ph.D., P.Geo., is the Qualified Person pursuant to National Instrument 43-101 responsible for, and has reviewed and approved, the technical information contained in this news release. Dr. Hennigh is acting as a technical advisor to Gold Canyon.

About Gold Canyon Resources Inc.:

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 - Horseshoe Island Gold, Platinum, Palladium Project and Favourable Lake Poly-metallic property currently under option to Shoreham Resources Inc. pursuant to an option and joint venture agreement entered into in December 2005 - all in the Red Lake Mining District of Ontario, Canada.

Through its wholly owned U.S. 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.

Gold Canyon entered into a Joint Exploration Agreement with the Japan Oil, Gas and Metals National Corporation (JOGMEC) in January 2009.

Additional information can be found on the Company's website: www.goldcanyon.ca

Akiko Levinson,
 
President & Director

Certain statements contained in this news release using the terms "may", "expects to", "project", "estimate", "plans", and other terms denoting future possibilities, are forward-looking statements in respect to various issues including upcoming events based upon current expectations which involve risks and uncertainties that could cause actual outcomes and results to differ materially. 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 and 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; the fact that exploration activities seldom result in the discovery of a commercially viable mineral resource and are also significant amounts of capital to undertake and the other risks associated with start-up mineral exploration operations with insufficient liquidity, and no historical profitability. The Company disclaims any obligation to revise any forward looking statements as a result of information received after the fact or regarding future events.

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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