Golden Phoenix Secures Facility in Peru to Process Molybdenite Stockpiles at Porvenir; Anticipated Production Targets 1st Quarter 2011

Oct 28, 2010, 14:17 ET from Golden Phoenix Minerals, Inc.

SPARKS, Nev., Oct. 28 /PRNewswire/ -- Golden Phoenix Minerals, Inc. (the "Company") (OTC Bulletin Board: GPXM) is pleased to announce it has secured a milling facility in southern Peru to process the molybdenite currently stockpiled at the Porvenir property, with production of molybdenum concentrates anticipated to commence during the first quarter of 2011.

Earlier this month, Golden Phoenix entered into a definitive agreement with Salwell International ("Salwell") to form a strategic alliance ("Alliance") in order to develop certain defined properties in Peru, as well as to identify, acquire and develop future mining opportunities within Central and South America.

Roberto Salaverria, Managing Member of Salwell, stated, "Locating and securing a concentration plant is a key component to the Alliance strategy of monetizing the molybdenite that is contained in the surface stockpiles on the Porvenir property.  The contract allows us operational control over this facility for the next two years and can be extended as additional development warrants."

Over the coming months the Alliance will focus on expansion of the mill's capacity to further optimize concentrate production and cash flow.  Efforts will also include evaluating the potential to reactivate molybdenum mining at Porvenir as well as commencing exploration for economic gold mineralization on the adjacent lands now under Alliance control.

Tom Klein, CEO of Golden Phoenix concluded: "Our control of a production facility in Peru will expedite the monetization of the Porvenir stockpiles and facilitate the development of other recently acquired South American projects."

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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.

For More Information Contact:

Robert Ian, Director of Corporate Communications (775) 453-4741

SOURCE Golden Phoenix Minerals, Inc.