Bonanza Goldfields and Osiris Gold Launch Red Mountain Gold LLC Joint Venture

DENVER, June 13, 2011 /PRNewswire/ -- Bonanza Goldfields Corp. (PK:BONZ) ("Bonanza" or the "Company"), an exploration and mining company based in Phoenix, Arizona, and Osiris Gold Corporation (Osiris), an established Denver, Colorado holding company of gold claims in the historically resource rich Red Mountain district - aggregating patented mining claims, have entered into a definitive joint venture agreement forming Red Mountain Gold LLC.  The joint venture owns 43 claims with 332,000 ounces of proven gold reserves and is currently negotiating to purchase additional mining claims in the area of interest.

"Bonanza Goldfields is pleased to announce this joint venture," commented David Janney, Bonanza's CEO and President. "Bonanza has negotiations with institutional lenders willing to fund commercial production in exchange for payment in kind from our future yields of rare minerals.  Based on this structure, it results in a positive impact on our capital structure as share issuance, dilution, and debt will not be a necessity for gaining the Red Mountain asset."

Mr. Janney further added:  "The initial phase of the Red Mountain project is to continue a core drilling program to prove up additional reserves which have been indicated by past drilling. After fully funded, the planned summer drill program is expected to add substantially to the existing reserve.   With local support, we can bring to the region high paying, high-tech, long term jobs, while keeping the area pristine.  We will put to work state of the art, environmentally responsible practices and technology. As believers in the principals of having zero long term impact on the environment at Red Mountain, we hope to serve as an international example for eco-safe mining."

A Behre Dolbear executive summary report (published in 1994) stated: "The Red Mountain Property lies at an elevation of 10,500 to 13,500 feet in an area noted for gold production dating back to 1860. The property consists of patented mining claims. Mineralization occurs in oxidized zones of intense silica alteration and is open at depth. Based on old workings below the silica cap, high grade, sulfide bonanza type deposits could exist at depth, however, this potential has not been tested.

A geological resource of 16.6 million tons of mineralized material grading 0.024 oz/t of gold, and 0.711 oz/t of silver is calculated to exist on the property.  A mineable reserve of 12.3 million tons grading 0.027 oz/t of gold, and 0.790 oz/t of silver exists based on open pit designs and production schedules prepared by Wright Engineering in 1986 (The geological technical work was updated in 2006 by SRK Consulting). The reserves meet U.S. Security and Exchange Commission criteria for proven (measured) and probable (indicated) categories."  

In the Red Mountain Gold LLC joint venture structure there is a 49% earn in equity potential for Bonanza Goldfields in exchange for bearing the costs of bringing the project into commercial production.  

Notice Regarding Forward-Looking Statements:

Although all exploration and mine development and extraction work will be conducted with the best practices and usual standards of professional conduct with the express focus of further exploring, defining and extracting mineral resources and mining reserves, there are no assurances of the ability of our company to achieve the full potential or full value of the reserves.

This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of our exploration program at our properties and any anticipated future production. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with petroleum exploration and development stage exploration companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the most recent fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

ON BEHALF OF THE BOARD Bonanza Goldfields Corporation --

David Janney
President and CEO
www.bonanzagoldfields.com
SOURCE: Bonanza Goldfields Corporation

Contact:
Steven Ragan  
Corporate Communications & Investor Relations
800-971-2669

About Red Mountain Project:  http://www.bonanzagoldfields.com/redmountain.html

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SOURCE Bonanza Goldfields Corporation