SOURCE: Golden Phoenix Minerals, Inc.

Golden Phoenix Minerals, Inc.

July 19, 2011 13:38 ET

Golden Phoenix Joint Venture Partner Scorpio Gold Provides Gold Sale and Operations Update at the Mineral Ridge Gold Project, Nevada

SPARKS, NV--(Marketwire - Jul 19, 2011) - Golden Phoenix Minerals, Inc. (the "Company") (OTCBB: GPXM) joint venture partner Scorpio Gold is pleased to announce that since start-up of operations at the Mineral Ridge gold deposit, Nevada, precious metals sales from production of gold and silver in loaded carbon now totals 1,472 ounces of gold and 790 ounces of silver to Waterton Global Resource Management, as per the Waterton sales agreement.

Production shipments of loaded carbon now total 28.67 tons containing an estimated 2,550 ounces of gold and 1,500 ounces of silver. Additional precious metals are available for sale and the gold and silver markets will continue to be monitored to take maximum advantage of rising metal prices.

During the month of June, the final 260,000 tons of mineralized material left on the leach pad by the previous operator was reprocessed and replaced on the leach pad and is currently under leach. Mineralized material mined from the Drinkwater pit during the month totaled 22,704 tons with an average grade of 0.066 ounces per ton (opt) gold. Waste material mined during the month totaled 309,000 tons. A large portion of the material delivered to the crusher was from pit cleanup of blasted material from previous operators.

Initial evaluation of the material in the bottom of the Wedge B open pit has identified gold values of interest. Ripping by a D-6 bulldozer of the bottom of the pit has allowed for grab sampling over the entire 5,900-sq. meter exposed area, with 40 samples collected (Table 1). Excavation of six trenches is underway across the mineralized area to determine its thickness and if the material warrants excavation for crushing and leaching.

Systematic evaluation of potential additional mineralized areas on the 4,118-hectare (10,176-acre) Mineral Ridge property continues, with the latest results from first pass grab sampling of the State Bank area, situated approximately 1 kilometer north of the leach pad. Encouraging gold assays have been received from the area (Table 2) and this data will be incorporated into the drill target program for further evaluation.

Samples are analyzed by fire assay using an atomic absorption finish. A re-assay with gravimetric finish is applied to samples over a certain threshold. American Assay Laboratory Inc. (AAL) in Sparks, Nevada, performed the analysis. AAL does not have ISO/IEC 17025 accreditation but implements a quality management system following ISO/IEC 17025 standards and maintains a paperwork trail for ISO/IEC 17025 accreditation. AAL participates in a number of testing and certification programs, details of which are presented in Scorpio Gold's quality assurance and quality control (QA/QC) program for the Mineral Ridge project at: External check assays to verify lab accuracy are routinely completed by ALS Chemex, an ISO 9001:2000 certified and ISO/IEC 17025:2005 accredited laboratory.

Mr. Peter J. Hawley, PGeo, is Scorpio Gold's Qualified Person and CEO for the various Scorpio Gold projects. Mr. Hawley is responsible for the current exploration and development program at Mineral Ridge.

Scorpio Gold reports its results under Canadian mining and TSX Venture Exchange guidelines, which report mineral reserve and resource estimates differently than in the U.S., and may not meet the standards of "proven" and "probable" reserves set forth in SEC Industry Guide 7.

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About Golden Phoenix: Golden Phoenix Minerals, Inc. is a Nevada-based mining company whose focus is Royalty Mining in the Americas. Golden Phoenix is committed to delivering shareholder value by identifying, acquiring, developing and joint venturing gold, silver and strategic metal deposits throughout North, South and Central America. Golden Phoenix owns, has an interest in, or has entered into agreements with respect to mineral properties located in the United States, Canada and Peru including its 30% interest in the Mineral Ridge gold project near Silver Peak, Nevada.

Forward Looking Statements: Information contained herein regarding optimism related to the business, expanding exploration, development activities and other such statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to the safe harbors created thereby. While Golden Phoenix believes such statements are reasonable, they are based on current expectations, estimates and projections about the Company's business and 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 factors including continued market prices for the Company's mineral products, domestic and international business and economic conditions, and other risk factors listed in the Company's Securities and Exchange Commission (SEC) filings under "risk factors" and elsewhere. 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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