CAU Canyon Resources Corp

Canyon Resources Files Form 8-K Concerning Restatement of Financial Statements and Updates Status of Delayed Second Quarter Report on Form 10-Q GOLDEN, Colo., Sept. 8 /PRNewswire-FirstCall/ -- Canyon Resources Corporation (AMEX:CAU), a Colorado-based mining company, previously announced a delay in filing its Second Quarter Report on Form 10-Q in a press release dated August 24, 2004. The delay occurred because the Company was reviewing the impairment model used for testing the Briggs Mine assets. Subsequently, the Company also reviewed the accounting for a loan made to a private exploration company and the accounting used for the issuance of restricted stock to an individual for services. The Company has reviewed the appropriateness of its impairment model for evaluating the Briggs Mine assets under SFAS No. 144 "Accounting for the Impairment or Disposal of Long-Lived Assets," and determined that its impairment model was inappropriate. In addition, after discussions with its independent accountants, the Company determined that the loan made to a private exploration company, the proceeds of which were used for exploration, should have been accounted for as an exploration expense. No determination has been made in the accounting the Company used for restricted stock issued to an individual for services. The independent accountants, on September 1, 2004, advised the Company that disclosures should be made or actions should be taken to prevent future reliance on their audit report for 2003 and prior periods and completed interim review for the quarterly period ended March 31, 2004. On September 2, 2004, our Audit Committee held a meeting with management and the independent accountants and determined that the Company's financial statements for 2003 and prior periods and quarterly period ended March 31, 2004 should be restated. Today the Company filed a Form 8-K which describes the items discussed in this press release. The Company will file its second quarter report on Form 10-Q as soon as the Company finalizes the accounting relating to the above referenced matters and the independent accountants complete their review. The Company will make all reasonable efforts to file the 2004 second quarter report on Form 10-Q, containing the restatements for each quarter of 2003 and the first quarter of 2004, as soon a possible. The Company will file an amended 2003 Form 10-K incorporating all restatement adjustments for prior periods as soon as practical thereafter. 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 metals prices, production and reserve estimates, production costs, cash flows, environmental and governmental regulations, availability of financing, judicial proceedings and force majeure events. Most of these factors are beyond the Company's ability to control or predict. FOR FURTHER INFORMATION, SEE http://www.canyonresources.com/ OR CONTACT: Richard H. De Voto, President or Gary C. Huber (303) 278-8464 Vice President-Finance DATASOURCE: Canyon Resources Corporation CONTACT: Richard H. De Voto, President of Canyon Resources Corporation, +1-303-278-8464 Web site: http://www.canyonresources.com/

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