Golden Phoenix Completes Phase I Sampling of Coyote Fault Gold and Silver Project; New Potential Gold Exploration Target Identified

SPARKS, Nev., Dec. 3, 2010 /PRNewswire/ -- Golden Phoenix Minerals, Inc. (the "Company") (OTC Bulletin Board: GPXM) is pleased to announce Phase I geologic mapping and outcrop sample collection for assay analysis as it relates to gold and silver mineralization has been completed on the Coyote Fault Gold and Silver Project ("Coyote Fault property").

Approximately 7 square kilometers of the Coyote Fault property was mapped and 29 outcrop samples were collected inside the property boundaries for assay analysis by Silver Spartan LLC and submitted to ALS Laboratory Group in Elko, Nevada for gold and silver analysis.

Of particular interest were sample numbers 009 (5.89g Au), 010 (0.605g Au), and 011 (0.117g Au) that were taken from mineralized outcrops near the southern end of the Coyote fault claim. This area is located 700 meters north of the Blue Light gold deposit on the adjacent Mineral Ridge gold property and 150 meters east of the Coyote fault line.  The average grade of all 29 outcrop samples was 0.3 grams of gold, with the richest sample being sample number 009 at 5.89 g/t Au and the lowest being certain samples yielding 0 g/t Au.

According to the report by Silver Spartan LLC, the proximity to the Coyote fault and the contact between the metamorphic rock and the large granite exposure justifies further exploration for gold and silver mineralization both above and below the surface.

The report states the Coyote Fault property has the same geology and depositional model as the rest of the Mineral Ridge mining district. The deposits of the Mary and Drinkwater mines on the adjacent Mineral Ridge gold property were not evident from the surface; however the small, mineralized showings in the area eventually lead to the discovery of those deposits.

The report concludes the data supports favorable exploration potential for the Coyote Fault property.

"This first phase geologic report provides the baseline data and suggests how to start a potentially successful exploration program on the Coyote Fault property," stated Tom Klein, CEO of Golden Phoenix. "Plans are currently underway for Phase II exploration in the first half of 2011."

The Coyote Fault property is located in the middle of the Walker Lane tectonic belt with Sierra Block uplift to the west and the Basin and Range to the east. The property is on the northern flank of Mineral Ridge and is along the eastern edge of the Silver Peak Range.

Although the early results of exploration on the Coyote Fault property look promising and may support the Company's decision to continue expending its resources on further exploration, the test results set forth above are not yet sufficient to establish any proven or probable ore reserves under traditional mining standards, nor has there been sufficient exploration to determine if the extraction of precious metals on this property is feasible, from an economic point of view.  Investors should not infer from these early assay results that there exists sufficient amounts of precious metals on this property to support profitable mining operations now, or in the immediate future.

Please visit the Golden Phoenix website at: www.golden-phoenix.com.

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 mining superior precious and strategic metal deposits throughout North, Central and South America using competitive business practices balanced by principles of ethical stewardship. Golden Phoenix is a 30% joint venture partner with Scorpio Gold on the Mineral Ridge gold and silver property near Silver Peak, Nevada, and owns the Adams Mine and Duff Claim Block near Denio, Nevada, and the Northern Champion molybdenum mine in Ontario, Canada. Golden Phoenix has an option to earn an 80% interest in the Vanderbilt Silver and Gold Project, and the Coyote Fault Gold and Silver Project, both of which are adjacent to the Mineral Ridge gold and silver property near Silver Peak, Nevada. Golden Phoenix has entered into a Memorandum of Understanding to acquire an 80% interest in five gold and molybdenum properties in Peru; two on the Pataz Gold Trend in the north and three in the Porvenir area in the south. Golden Phoenix has entered into a Definitive Acquisition Agreement to acquire a 100% interest in four gold and base metal properties in the Shining Tree Mining District in Ontario, Canada.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements by officers of the Company, and other statements regarding optimism related to the business, expanding exploration and development activities and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business. Words such as expects, anticipates, intends, plans, believes, sees, estimates and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements 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. In addition, actual results could vary materially based on changes or slower growth in the gold and base and precious metals markets; the potential inability to realize expected benefits and synergies in the Company's mining operations; domestic and international business and economic conditions; changes in the mining industry for base and precious minerals; unexpected difficulties in restarting or expanding production at the Company's mines; the need for additional capital and other risk factors listed from time to time in the Company's Securities and Exchange Commission (SEC) filings under "risk factors" and elsewhere. The forward-looking statements contained in this press release speak only as of the date on which they are made, and 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.

SOURCE Golden Phoenix Minerals, Inc.