Geologists Suggest Golden Wonder Vein Structure May Contain Much Greater Potential Than Previous Production Indicates

GIG HARBOR, Wash., Aug. 22, 2011 /PRNewswire/ -- LKA International, Inc. (OTCQB: LKAI) LKA Management believes that continued exploration could result in a much larger gold deposit.

Geologists who've conducted investigations of the Golden Wonder vein structure over the past decade (on LKA's behalf or for its benefit) suggest that the gold bearing structure may have a much greater potential than 137,000 ounces from the previous production zone. The additional underground potential has not been fully explored yet and the regional potential still has to be investigated. The following are excerpts from their reports and written observations:

"The Golden Wonder Mine mineralization could also be related to a bigger hydrothermal system potentially linked with the Eureka Graben fracture system which played an important role in the location of some other gold veins known to the W-SW of Lake City area (Sunnyside, Idarado)." Marie-France Bugnon, M.Sc. Manager, Exploration-Cambior, Inc. (July, 2006)

"Previous field geological studies and geochemical sampling conducted by the author some distance above the Golden Wonder vein have indicated telluride mineralization well beyond the presently-known Golden Wonder vein structure." Delmer Brown, M.Sc. Consulting Geologist (June, 2008)

"There is no indication that the limits of high-grade gold in the vein zone have been reached either laterally on-strike or vertically down-dip."   Clyde Smith, Ph.D. Consulting Geologist (September, 2010)

Investors are encouraged to read the full context of these statements which can be found in the Appendix to the "Investor Presentation" provided on the Company's website at: www.lkaintl.com . Full reports, from which these excerpts are taken, will be provided upon written request to the Company at: [email protected]

Exploratory ore production continues to offset major portion of exploration cost.

LKA continues to finance its exploration effort at the Company's Golden Wonder mine through sales of gold ore produced while conducting its exploratory mining program. The Company continues to assess the mine's future resource potential through a program of underground drilling and drifting designed to test known extensions of the gold bearing structure that produced more than 136,000 ounces during the previous decade. More than 1,400 ounces have been produced since exploration began in early 2009. Ore grades from the July 2011 shipment to the Kinross milling facility in Republic, WA settled at 1.41 ounces (39.9 grams) gold per ton. August shipments (not yet settled) are expected to exceed 2 ounces (56.7 grams) gold per ton. LKA expects total "exploratory production" will exceed 1,800 ounces by year-end with 800 of these total ounces produced in the current year, up 33% over last year. The objective of the current exploration program is to reestablish mineable reserves and resume commercial levels of production.

About Golden Wonder & LKA

LKA International, Inc. is a natural resources development company that owns the Golden Wonder Mine, a high-grade gold property located near Lake City, Colorado. From 1998 through the second quarter of 2006, the mine produced over 133,701 ounces (82% of which came during the period of 2002-2006) from ore with an average grade of 16.01 oz. gold per ton. Upon resuming operations (exploration) in the first quarter of 2009, LKA has shipped 945 tons of ore containing 1,400 ounces of gold. LKA has less than 16 million shares issued and 1.4 million options/warrants outstanding. The Company's properties are paid for and all operating permits are in place. LKA is currently evaluating financing proposals to expand its exploration activities.

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
[email protected]
http://www.lkaintl.com

SOURCE LKA International, Inc.