Golden Dawn Minerals Inc.
TSX VENTURE : GOM
FRANKFURT : 3G8N

Golden Dawn Minerals Inc.

October 02, 2012 12:56 ET

Golden Dawn Minerals Updates Exploration and Sampling Schedules for Greenwood Project With Underground Bulk Sampling Anticipated at the May Mac and Wildrose Mines 2012-2013

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 2, 2012) - Golden Dawn Minerals Inc. (TSX VENTURE:GOM)(FRANKFURT:3G8N) (the "Company" or "Golden Dawn") is pleased to provide an outline of activity anticipated in the next 18 months on the Greenwood Project, in the Boundary Mining District, near Greenwood, British Columbia, Canada. The program will evaluate the potential for early gold and silver production and will focus initially on the historic May Mac Mine and Wild Rose Mine located within the Greenwood Precious Metal Project lands. Preliminary work scheduled for the two historic underground mines will consist of rehabilitation of the adits, detailed underground mapping and sampling along with a program of underground drilling. Based upon the results of this initial underground exploration program, a program of bulk sampling of 10,000 tonnes of material from each mine will follow.

Concurrent with the exploration and development work on the two mines, a continued drilling program on the Deadwood Gold Zone will work toward increasing the current inferred resource of 279,300 oz. of gold (See Company News Release dated July 13th, 2011). Last fall, eight additional diamond drill holes were completed at the Deadwood Gold Zone with all of the holes intersecting mineralized zones containing gold, silver and copper (See Company News Releases dated November 17th and 21st, 2011). A new resource calculation is being prepared and the 19.4 million tonnes grading 0.45 grams per tonne (g/t) gold with a cutoff grade of 0.3 g/t is expected to increase substantially.

At the historic May Mac Mine, which has had prior high grade production of silver, gold and base metals, in part direct shipped and in part milled through the existing and permitted 130 ton per day (t/pd) mill and tailings facility on the property, a program of approximately $600,000 is planned with underground rehabilitation, underground mapping and sampling and underground drilling. This program is designed to define the potential of the historic May Mac Mine to become a near term high-grade gold and silver producer. A 10,000 tonne bulk sample is planned to follow the exploration and rehabilitation program.

At the historic Wild Rose Mine area, located 2 km north of the May Mac Mine, on the contiguous Wild Rose-Tam O'Shanter property, a $200,000 program of exploration will be directed toward rehabilitation of the Wild Rose adit, along with underground sampling and drilling. The Wild Rose vein system has been intersected by a number of diamond drill holes 1000 meters to the North, North-West and North-East of the Portal of the Wild Rose adit. Wild Rose type veins have been identified in the Deadwood low grade bulk tonnage zone. Following this initial phase of exploration, a 10,000 tonne bulk sample is targeted to assess the potential mineable grade of the multiple quartz-sulphide veins located in the Wild Rose Mine.

Following the above programs a decision will be made regarding rehabilitation of the 130 t/pd May Mac mill and tailings pond facility to enable continuing production from both mines and treatment of the production on site.

The Company anticipates retaining a Peruvian mining contractor to conduct the rehabilitation and exploration work, and to continue production following rehabilitation of the milling facility.

At the Deadwood Gold Zone a budgeted program of 4000 meters costing approximately $1,000,000, will be directed toward expanding the currently established inferred resource of 19.4 million tonnes containing 279,300 ounces of gold.

The above work program is subject to a financing in the very near future.

Concentration of the Company's efforts on the two mines discussed above has resulted in a decision to abandon the Royal Attwood Property. In view of market conditions all efforts will be directed toward early production as a prime objective.

Mr. Michael Dufresne, P.Geol., a Qualified Person as defined by National Instrument 43-101, has reviewed the contents of this release.

On behalf of the Board of Directors:

GOLDEN DAWN MINERALS INC.

Wolf Wiese, President/ Chief Executive Officer

THIS PRESS RELEASE WAS PREPARED BY MANAGEMENT WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. THIS DOCUMENT CONTAINS CERTAIN FORWARD LOOKING STATEMENTS WHICH INVOLVE KNOWN AND UNKNOWN RISKS, DELAYS, AND UNCERTAINTIES NOT UNDER THE COMPANY'S CONTROL WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE RESULTS, PERFORMANCE, OR ACHIEVEMENTS IMPLIED BY THESE FORWARD LOOKING STATEMENTS. WE SEEK SAFE HARBOR.

Neither 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 release.

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