LKA expects June ore shipment to settle at 1.4 oz gold per ton. August shipment expected to exceed 2 oz per ton.

GIG HARBOR, Wash., July 28, 2011 /PRNewswire/ -- LKA International, Inc. (OTCQB: LKAI) reports that Golden Wonder mine operator, Coal Creek Construction, is preparing to make another shipment of approximately 100 tons of exploratory ore in early August. This will be the ninth such ore shipment since LKA embarked on a program in early 2009 to reestablish reserves at its high-grade Golden Wonder mine near Lake City, CO. Exploration work involving drilling and drifting along the multiple vein system results in limited ore production which has been crushed, bagged and sold to Teck, Kinross and Yukon-Nevada. While far below the mine's historic production levels and ore grades (300 tons per quarter at an average grade of 16 oz gold per ton) these ore shipments continue to offset the majority of LKA's exploration cost. Through August, LKA crews will have produced approximately 1,000 tons of exploration ore at an average grade of 1.4 oz (39.7 grams) gold per ton.

In addition to exploratory mining, an underground drilling program was initiated earlier this month. Through a combination of drifting, drilling (surface & underground) and geochemical/geophysical surveys over the next two years LKA expects to establish another high-grade ore body and resume commercial production. This will be the first time a detailed evaluation of the Golden Wonder vein system has been attempted. Previous underground exploration yielded two such ore zones that produced over 137,000 ounces. LKA's consulting geologists believe that the Golden Wonder telluride vein system could contain multiple high-grade ore zones.

Safe Harbor Statement

LKA's plans to resume/expand Golden Wonder production are subject to a number of conditions including, but not limited to, favorable geology, successful exploration efforts, favorable financing terms/availability, permits, gold prices, market conditions, etc. Mining and related activities are inherently high-risk endeavors and there can be no assurance that LKA will be successful. This press release contains certain forward-looking statements. Statements contained in this press release that are not purely historical are considered forward-looking. When used in this press release, the words "plan", "target", "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding LKA International, Inc.'s future plans for exploration and/or production, future expenses and costs, future liquidity and capital resources, and estimates of ore, ore grades and mineralized material. All forward-looking statements in this press release are based upon information available to LKA International, Inc. on the date of this press release and the company assumes no obligation to update any such statements. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's reports filed with the Securities and Exchange Commission.

Contact:

LKA International
Kye A. Abraham, (253) 514-6661
info@lkaintl.com
http://www.lkaintl.com

SOURCE LKA International, Inc.

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