CAU Canyon Resources Corp

Update on Canyon Resources Project Activities GOLDEN, Colo., May 12 /PRNewswire-FirstCall/ -- Canyon Resources Corporation (AMEX:CAU), a Colorado-based mining company, is pleased to provide an update on project activities currently underway at the Company prior to its scheduled first quarter conference call: Hycroft Mine -- Canyon has entered into an option to acquire the Hycroft mine near Winnemucca, Nevada, which includes a $500,000 work commitment to be spent on drilling, due-diligence and mine re-start feasibility study. This program is expected to be completed prior to August 20, 2005, the option exercise date. Canyon may exercise its option to acquire Hycroft at any time during the option period for $4.0 million in cash plus $6.0 million in Canyon equity units consisting of one common share and one warrant for one half share, priced at the 20 day closing average prior to the exercise date. A total of 6,175 feet of drilling in 16 drill holes has been completed out of a projected 20,000 foot due-diligence program. Of the holes completed, eight were directed to confirmation drilling within the projected pit boundary on the Brimstone orebody and eight holes were drilled as step-outs designed to extend pit boundaries. Assays have been received for the first eight confirmatory holes drilled, which returned expected grade ranges and confirmed gold values for this orebody. Assays have yet to be returned for the step-out holes. Review and or restart cost analysis has been substantially completed on title status, environmental, permitting, plant facilities, infrastructure and metallurgical recoveries with no unexpected results being developed, at this time. Resource modeling has been completed for the Brimstone and Boneyard orebodies and reserve estimation and mine design studies are currently underway. A significant volume of sulfide mineralized material exists at the bottom of the drill hole database below the oxide zone of the Brimstone orebody and limited metallurgical testwork on these sulfides indicates that this material may be amenable to gold recovery utilizing flotation concentration. Plans have been developed to take additional samples of sulfide mineralized materials for metallurgical testing for gold recovery by both flotation and leach methods. Reward Project -- Canyon Resources acquired the Reward Project near Beatty, Nevada, through mineral leases with several private owners of unpatented BLM claims. This property contains an intensely sheeted, north-south trending shear zone with associated veins. The property had been previously drilled and evaluated for gold mineralization by Rayrock Mines Incorporated, Barrick Gold Corporation and others. Data packages from this previous work have now been assembled, showing that a total of 287 holes have been drilled on the property representing over 100,000 feet of drilling. Chlumsky, Armbrust & Meyer (CAM), an independent mining consulting group of Lakewood, Colorado, has been retained to evaluate and develop a reserve model for this project. Initial results are expected by June. Seven-Up Pete Venture/McDonald Project -- Canyon has been approached by a number of organizations including at least one major gold mining company concerning non-cyanide gold recovery technologies that may be used in recovering gold from McDonald ores. Most of these technologies are in an early development state and are not commercial at this time. These technology proposals are being evaluated for applicability, status of commercialization, and overall environmental impact. Montana Mineral Package -- Canyon owns approximately 900,000 acres of mineral rights in north-western Montana with similar geologic conditions to several nearby copper/silver deposits (Troy, Rock Creek, Montanore) and epithermal and porphyry gold/copper/molybdenum deposits (McDonald, Montana Tunnels, Butte). Reconnaissance explorations programs were conducted on these properties under a joint venture program between Canyon and BHP Minerals International Exploration Inc., and previously by Phelps Dodge Corporation, Anaconda Minerals and others. Canyon is presently assembling available information on the mineral exploration status of these properties including surface ownership status. We plan to assemble the properties into logical packages that will be presented for joint venture with motivated exploration companies. Uranium Program -- In the early 1980's Canyon's exploration activities led to the discovery of several miles of roll fronts in the State of Wyoming. Canyon is pursuing re-acquisition of the mining rights to these properties. The environment for this activity in Wyoming is highly competitive and the Company is evaluating the resources necessary to conduct a successful program. "Canyon Resources is actively engaged in advancing a number of projects simultaneously. Our goal is to provide a strong pipeline of operating and development projects to develop cash flow and secure our ultimate goal of becoming a mid-tier gold producer. In addition, we continue to actively support and work towards unlocking value from the McDonald property through either success in the courts or through the use of non-cyanide based technologies," states James Hesketh, President. The Company will be holding a conference call to discuss first quarter results and the status of corporate activities for all interested parties at 4:00 pm, ET, Thursday May 12, 2005. Persons desiring to attend and listen in on the conference call can do so by logging on to http://www.actioncast.acttel.com/, event ID 28938. Actual results may differ materially from any forward-looking statement whether expressed or implied in this news release. The following risks and uncertainties which could cause actual results to vary include, but are not limited to speculative nature of mineral exploration, precious metal prices, production and reserve estimates, production costs, cash flows, environmental and governmental regulations, availability of financing, judicial proceedings and force majeure events and other risk factors as described from time to time in the Company's filings with the Securities and Exchange Commission. Most of these factors are beyond the Company's ability to control or predict. FOR FURTHER INFORMATION, CONTACT: James Hesketh, President, (303) 278-8464 Gary Huber, VP Finance, (303) 278-8464 DATASOURCE: Canyon Resources Corporation CONTACT: James Hesketh, President, or Gary Huber, VP Finance, both of Canyon Resources Corporation, +1-303-278-8464 Web site: http://www.actioncast.acttel.com/ Web site: http://www.canyonresources.com/

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