Canyon Resources Outlines Its Forward Looking Strategy

    GOLDEN, Colo., Sept. 5 /PRNewswire-FirstCall/ -- Canyon Resources
 Corporation ( CAU), a Colorado-based mining company, provides an
 update on its forward looking strategy. As a result of recent market
 turmoil, the management and Board of Canyon has conducted a critical review
 of the strategic plans of the Company. It is the Company's belief that the
 intrinsic value of its underlying cash, equipment, and property assets net
 of liabilities exceeds its current market value and that steps must be
 taken to unlock its unrecognized value for the benefit of its shareholders.
     "Canyon has a wealth of mineral property interests and we believe that
 the capital markets are overly discounting their potential market value,"
 stated James Hesketh, President and CEO of the Company.
     The Company's primary goal is to re-establish gold production, either
 as a mine operator, joint venture partner or as a royalty holder. In order
 to achieve this goal, the Company will pursue either the sale or joint
 venture of those property assets which are either considered non-core or
 that require substantial capital to place into production. In the event of
 a sale of mineral properties, the Company's plan is to hold an ongoing
 interest in the form of either a joint venture position or a royalty.
     "We believe that the sale or joint venture of these properties will
 help to unlock the fair value of these assets for our shareholders, while
 building our treasury in order to fund the future growth of the Company,"
 said Mr. Hesketh. "This strategic direction will help us control the
 potential dilution risk of developing these assets ourselves. Management
 has begun implementation of this strategy."
     The Company plans to delay the recently announced underground test
 mining at the Briggs Mine until the development can be funded through
 either a joint venture or can be funded in a manner that would minimize
 further dilution to our shareholders.
     Canyon controls the Briggs Gold Mine and four satellite deposits in
 California; the Reward Gold Project near Beatty, Nevada; four gold
 exploration properties also in Nevada, including the advanced stage
 Adelaide and Tuscarora properties, and the Seven-Up Pete Gold Project near
 Lincoln, Montana. To date, the Company has developed in-place mineralized
 material on its properties containing over 1.9 million ounces of gold and
 substantial exploration potential is believed to exist. Canyon has
 developed re-start and underground test mining plans for its permitted
 Briggs Mine and is completing permitting and feasibility study work on its
 Reward Project. Since 1996 at Briggs, the Company has mined ores containing
 around 730,000 ounces of gold and has reported reserves and remaining
 in-place mineralized material containing approximately 840,000 ounces. The
 Company believes that this 1.6 million ounce property has substantial
 potential for additional gold discovery.
     In addition to these assets, the Company is a carried partner on the
 Sand Creek-Converse uranium exploration joint venture project in the
 Southern Powder River Basin of Wyoming. Canyon owns over 900,000 acres of
 fee mineral rights in the State of Montana that contain identified
 industrial mineral and copper potential. Canyon also holds royalty
 interests on gold properties in Montana, Argentina and the Dominican
 Republic. In addition, the Company is a party to a takings suit against the
 State of Montana to recover value that was lost with the McDonald Gold
 Project due to changes in legislation resulting from an anti-cyanide ballot
 initiative.
     For additional information on Canyon Resources, please visit our
 website at http://www.canyonresources.com.
     This press release includes "forward-looking statements" within the
 meaning of Section 27A of the Securities Act of 1933, as amended and
 Section 21E of the Securities Exchange Act of 1934 as amended. Although we
 believe that the expectations expressed in these forward-looking statements
 are reasonable, we cannot promise that our expectations will turn out to be
 correct. Our actual results could be materially different from and worse
 than our expectations. Factors that could cause actual results to differ
 materially from these forward-looking statements include, among others: (1)
 that we might not realize the benefits we are seeking from the revision of
 the Company's strategic plan announced on September 5, 2007; (2) that our
 focus on implementing the strategic plan might have a negative effect on
 our continuing business and our relationships with our business partners;
 (3) that we may be unable to find joint venture partners or that we may
 enter into sale or joint venture transactions that could result in
 operating difficulties, losses and other adverse consequences; (4) that our
 stock price has been volatile historically and may continue to be volatile,
 which could limit our ability to effectively implement the strategic plan;
 (5) that the price of gold has historically been and may continue to be
 volatile; (6) that there are potential operating risks of mining; (7) that
 our estimates of mineralized material and gold deposits may be incorrect;
 (8) that environmental and governmental regulations may impede our
 operations; (9) that we may be unable to secure financing on acceptable
 terms; (10) that ongoing litigation may not be favorably resolved; and (11)
 that other risks described in the risk factors contained in the Company's
 filings with the Securities and Exchange Commission may materialize. Most
 of these factors are beyond the Company's ability to control or predict.
 These risks and uncertainties, as well as other risks and uncertainties
 that could cause our actual results to differ significantly from
 management's expectations, are not intended to represent a complete list of
 all risks and uncertainties inherent in our business, and should be read in
 conjunction with the more detailed cautionary statements and risk factors
 included in our Annual Report on Form 10-K for the year ended December 31,
 2006.
     FOR FURTHER INFORMATION, CONTACT:
     James Hesketh, President and CEO (303) 278-8464
     Valerie Kimball, Investor Relations (303) 278-8464
     www.canyonresources.com
 
 

SOURCE Canyon Resources Corporation