American Bonanza Gold Corp.
TSX : BZA
OTCQX : ABGFF
PINK SHEETS : ABGFF

American Bonanza Gold Corp.

October 27, 2011 09:19 ET

National Bank Financial Exercises Over-Allotment Option for American Bonanza Public Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 27, 2011) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO US NEWS AGENCIES

American Bonanza Gold Corp. (TSX:BZA)(OTCQX:ABGFF)(PINK SHEETS:ABGFF) ("Bonanza" or the "Company") announces that, further to its news releases of September 8, 2011 and September 29, 2011 regarding its previously completed public offering ("Offering"), in which the Company sold an aggregate of 11,500,000 common shares of the Company on a bought deal basis, through National Bank Financial Inc. (the "Underwriter"), the Underwriter has fully exercised its over-allotment option to acquire an additional 1,725,000 common shares of the Company (the "Optioned Shares") at a price of $0.53 per Optioned Share for additional gross proceeds of $914,250.

The Company will use the net proceeds of the sale of the Optioned Shares to accelerate the planned transition of the Copperstone Mine into an entirely owner-operated facility and to accelerate the Company's exploration program at the Copperstone Mine, as more particularly described in the prospectus of the Company dated September 22, 2011 in respect of the Offering as filed on www.sedar.com.

The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to United States persons absent registration or any applicable exemption from the registration requirement of the U.S. Securities Act and applicable U.S. state securities laws. This release does not constitute an offer to sell, or the solicitation of an offer to buy securities in the United States, nor will there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Bonanza

Bonanza is nearing completion of the construction activities at the Copperstone gold mine, which will allow for re-activation of mining at the construction-stage Copperstone gold mine. Bonanza is well financed and has no debt. For more information please visit Bonanza's website at www.americanbonanza.com.

AMERICAN BONANZA GOLD CORP.

Brian Kirwin, President & Chief Executive Officer

This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, including the plans for the use of the net proceeds from the sale of the Optioned Shares and the likelihood of commercial mining are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include the inability of the Company to obtain a receipt for the short form prospectus, changes in market conditions, unsuccessful exploration results, changes in the price of gold, unanticipated changes in key management personnel and general economic conditions. Mining exploration and development is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on Bonanza and the risks and challenges of its business, investors should review the Company's prospectus dated September 22, 2011 in respect of this Offering as filed on www.sedar.com.

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