Canyon Resources Reports Second Quarter 2007 Results and Provides Update on Project Activities



    GOLDEN, Colo., Aug. 13 /CNW/ -- Canyon Resources Corporation (Amex:   CAU),
a Colorado-based mining company, is pleased to provide a summary of the
unaudited results for the Company's second quarter ended June 30, 2007.
    
    Financial Results
    
    We ended the quarter with $5.3 million of unrestricted cash and short
term investments. The short term investments of $0.5 million consist of
auction rate certificates. Cash used in operations during the second quarter
of 2007 amounted to $1.4 million and capital spending at the Briggs Mine
totaled $0.1 million. Significant uses of cash from operations are summarized
as follows:

    
    -- Selling, general and administrative spending amounted to approximately
       $0.9 million.
         -- Includes holding costs at the Briggs Mine of $0.4 million.
    -- Exploration and development spending amounted to $0.4 million including
       amounts capitalized.
    -- Asset retirement obligation spending amounted to $0.1 million primarily
       for the Kendall Mine operations and continued leach pad dewatering at
       the Briggs Mine.
    
    We recorded a net loss of $1.4 million, or negative $0.03 per share, on
no revenues for the second quarter ended June 30, 2007. This compares to a net
loss of $1.4 million, or negative $0.03 per share, on revenues of $0.4 million
for the second quarter of 2006. The total variance between the quarters was
nil, but significant variances between cost categories are summarized below:

    
    -- Negative variance of $0.4 million in revenue was offset by $0.4 million
       positive variance in cost of sales.
    -- Negative variance of $0.3 million in selling, general and
       administrative costs due primarily to the lack of gold production over
       which to allocate general and administrative costs.
    -- Positive variance of $0.1 million in exploration costs due to decreased
       drilling activity at Briggs and Reward in the current quarter compared
       to last year.
    -- Positive variance of $0.2 million related to last year's fair market
       adjustment to the increase in warrant liabilities and warrant extension
       expense.
    
    We recorded a net loss of $2.8 million, or negative $0.06 per share, on
revenues of $0.1 million for the six months ended June 30, 2007. This compares
to a net loss of $1.8 million, or negative $0.05 per share, on revenues of
$1.0 million for the six months ended June 30, 2006.
    For the second quarter ended June 30, 2007, we did not have any gold
sales. For the comparable period of 2006, we sold 690 ounces of gold at an
average price of $597. The London PM Fix gold price averaged $667 and $627 per
ounce for the second quarter 2007 and 2006, respectively.
    
    Operating Activities and Other Developments
    Briggs Mine
    
    At year-end 2006, we completed the initial Briggs Mine feasibility
studies for both the open pit and underground mining options. This study
returned positive economic results that we felt could be improved with
additional reserve development. With further analysis and drilling, we have
determined that the underground reserve and mineralized material associated
with the Goldtooth structure at Briggs represents the strongest potential for
developing additional mineralization for future cash flow from gold
production. Significant potential is possible from the Goldtooth structure
which remains open along strike and to depth. This potential has been tested
over a distance of 4,900 feet and to a depth of approximately 500 feet.
Through surface sampling and reconnaissance we have tracked the Goldtooth
fault for a distance of nearly six miles, most of which is under our control.
    Test mining will provide better and more cost effective access for
further exploration and reserve development. We are currently evaluating
contract mining quotes to develop an underground drift primarily through ore
along the Goldtooth fault, which will also provide access for further
exploration and reserve development and provide valuable information
concerning continuity of the gold bearing structure and mining conditions. Any
ore mined in this process would be stockpiled for later gold production. We
have increased the estimate of mineralized material along the Goldtooth
structure and we are optimistic about its total underground potential. As
announced on July 30, 2007, total in-place mineralized material in the high
grade Goldtooth zone is 0.8 million tons at a grade of 0.215 ounces per ton of
gold ("opt") based on a cutoff grade of 0.10 opt. This high grade zone is
surrounded by a blanket of lower grade material, totaling 4.2 million tons at
a grade of 0.049 opt using an internal cutoff grade of 0.02 opt. Mineralized
material outside of the Goldtooth zone and around the existing open pits
totals 22.0 million tons at a grade of 0.022 opt at a cutoff grade of 0.01
opt. Total in-place mineralized material from all sources quoted above at
Briggs is 27.0 million tons at a grade of 0.031 opt. Adequate financing and
the availability of mining contractors are the most significant risk factors
that may impact our plans.
    
    Reward Project
    
    Our Reward Project located near Beatty, Nevada, is currently in the
feasibility stage. We have hired an engineering firm to complete the
feasibility study to determine its economic potential. This feasibility study
will build upon the January 2006 positive pre-feasibility study and a May 2007
report showing a significant increase in mineralized material. Many of the
components of this study have already been completed or are in process
including: heap leach pad design, electrical supply, water supply,
geotechnical study and additional metallurgical test work. The Reward Project
anticipates development by conventional open pit mining methods and standard
crushing and heap leach technology for gold recovery. Leach solutions would be
circulated through activated carbon, concentrating the gold. This loaded
carbon would then be transported to the Briggs Mine in California or to a
third party gold facility for production of gold dore for sale or shipment to
a third party refiner.
    The permitting process for Reward is also proceeding as planned and is
well advanced.  A Plan of Operations was submitted to the Las Vegas Field
Office of the Bureau of Land Management ("BLM") and found to be complete. The
BLM has completed an internal scoping review and Canyon is preparing an
Environmental Assessment ("EA") to support the BLM's review. Archeological and
biologic assessment studies are being expanded to support the EA. Applications
for a Water Pollution Control Permit and a Reclamation Permit have been
submitted to the Nevada Division of Environmental Protection. The Division has
determined the applications are nearly complete and Canyon is providing
additional information to support the Division's technical review.
    
    Uranium Joint Venture ("JV") Developments
    
    In November 2006, Canyon's Converse/Sand Creek uranium exploration joint
venture commenced a drill program in the western portion of the Converse/Sand
Creek JV area and by the end of 2006, 14 holes were completed totaling 10,395
feet, which clearly demonstrated the presence of "roll front" style uranium
mineralization. The drilling program consisted primary of wide-spaced,
reconnaissance style drilling with drill hole spacing of 500 to 1,000 feet. A
follow up, closer spaced drill program consisting of 16 drill holes was
completed by the end of July 2007. We are waiting on the results of that
program, which have reportedly been positive. These drilling programs have
provided considerable additional information regarding both the location of a
uranium-bearing roll front, its apparent orientation and rock types. Uranium
mineralization has been previously identified in sediments of the White River
Formation that trends through the Converse/Sand Creek JV area. Canyon will not
be required to provide funding until its partners have contributed between
$2.0 and $2.8 million of expenditures in these two joint ventures.
    
    Conference Call
    
    Senior management will hold a conference call on Tuesday, August 14,
2007, at 11:00 a.m. EDT. Live audio of the call will be accessible to the
public by calling US/Canada dial-in number: 877-576-0177; international
dial-in number: 706-679-4128, Conference ID: 12665227. Callers should dial in
approximately 10 minutes before the call begins. A conference call replay will
be available two hours following the call, through midnight, August 15, 2007,
and can be accessed by calling: 800-642-1687 or 706-645-9291, Conference ID:
12665227.
    This press release includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended and Section
21E of the Securities Exchange Act of 1934 as amended. Such forward-looking
statements include, among others, feasibility studies for the Briggs and
Reward projects, mineralized material estimates, drilling capability and the
potential reopening or expansion of the Briggs Mine. Factors that could cause
actual results to differ materially from these forward-looking statements
include, among others: the volatility of gold prices; potential operating
risks of mining, development and expansion; the uncertainty of estimates of
mineralized material and gold deposits; and environmental and governmental
regulations; availability of financing; the outcome of litigation, as well as
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 and CEO (303) 278-8464
    Valerie Kimball, Investor Relations (303) 278-8464
    http://www.canyonresources.com
    



    
                CANYON RE

SOURCES CORPORATION AND SUBSIDIARIES SUMMARIZED CONSOLIDATED FINANCIAL AND PRODUCTION INFORMATION (Unaudited) June 30, Dec. 31, 2007 2006 BALANCE SHEETS Assets Current assets $5,705,600 $4,426,800 Noncurrent assets 12,574,300 12,397,800 Total assets $18,279,900 $16,824,600 Liabilities and Stockholders' Equity Current liabilities $1,848,600 $2,392,300 Notes payable 825,000 825,000 Noncurrent liabilities 2,974,600 3,087,200 Stockholders' equity 12,631,700 10,520,100 Total liabilities and stockholders' equity $18,279,900 $16,824,600 Three Months Ended Six Months Ended June 30, June 30, 2007 2006 2007 2006 STATEMENTS OF OPERATIONS Revenue $ - $413,100 $67,200 $1,006,400 Expenses and Other (Income) Cost of sales - 413,000 60,400 866,600 Depreciation, depletion and amortization 10,600 6,700 21,700 15,600 Selling, general and administrative 1,070,900 770,900 1,958,500 1,638,700 Exploration 299,100 424,100 871,600 733,200 Accretion expense 41,900 50,800 83,800 101,600 Loss on asset disposals - - 35,100 - Gain on sale of securities - (66,200) - (882,200) Loss on derivative instruments - 164,600 - 310,500 Other (income) expense, net (61,400) 19,400 (120,200) (25,300) Net loss $(1,361,100) $(1,370,200) $(2,843,700) $(1,752,300) Net loss per share $(0.03) $(0.03) $(0.06) $(0.05) Basic and diluted weighted-average shares outstanding 47,176,800 40,000,300 45,677,700 39,165,000 CASH FLOWS Cash and cash equivalents, beginning of period $572,600 $4,560,600 $1,513,700 $5,649,200 Net cash used in operating activities (1,377,000) (7,817,000) (2,875,600) (9,273,100) Net cash provided by (used in) investing activities 864,900 (351,700) 1,427,100 17,200 Net cash provided in financing activities 4,698,000 5,151,800 4,693,300 5,150,400 Cash and cash equivalents, end of period $4,758,500 $1,543,700 $4,758,500 $1,543,700 PRODUCTION & SALES DATA Gold sales in ounces - 690 100 1,735 Average realized price per ounce $ - $597 $668 $579 Average market price per ounce (London PM Fix) $667 $627 $658 $590

For further information:

For further information: James Hesketh, President and CEO, 
+1-303-278-8464, or Valerie Kimball, Investor Relations, +1-303-278-8464, both
 of Canyon Resources Corporation Web Site: http://www.canyonresources.com

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