Golden Phoenix Identifies Tungsten in Addition to Moly at Porvenir Project in Peru; Mill Modifications to Allow Processing of Both Tungsten and Moly Ore

SPARKS, Nev., March 11, 2011 /PRNewswire/ -- Golden Phoenix Minerals, Inc. (the "Company") (OTC Bulletin Board: GPXM) is pleased to announce the identification of tungsten as a potentially significant mineral in the Company's Porvenir project in Peru. Preliminary sampling during the build-out of the sorting operation at the stockpiles has returned indications that a significant amount of tungsten may be present in the stockpiled material.

Analyses have been completed with Golden Phoenix' in-house X-Ray fluorescence instrument and verified at Laboratorios Analiticos del Sur E.I.R.L., an independent lab in Arequipa, Peru.  

"The addition of tungsten to our portfolio of strategic metals strengthens our land package in Peru," stated Tom Klein, CEO of Golden Phoenix. "With tungsten prices at historic highs, we believe the processing of the Porvenir stockpiles can provide additional project diversification and upside potential for our shareholders."

Porvenir was historically mined for tungsten. Systematic sampling will now be undertaken to guide blending of the mill feed being sorted on site and shipped to the Rosales Mill where modifications are underway to expand the recovery process to include both tungsten and molybdenum concentrate.  

Mill improvements include installation of a complete gravity circuit for tungsten recovery and a regrind circuit to provide production of a consistent molybdenum concentrate.  Contracts with the regional power company have been negotiated to supply increased power demanded by additions to the current mill circuit. Final gravity circuit components are scheduled for installation in March.

Tungsten recovery and production of molybdenum concentrate is expected to begin following completion of the mill improvements.

Rehabilitation progress to re-open the Porvenir tungsten and moly mine continues through the 440 and 480 adits. Additional land has been secured under an option agreement by the Company's joint venture partner Sala-Valc S.A.C. on behalf of the Alliance.  This land encompasses the area along the strike projection of the three main veins. Geophysical and mapping programs are expected to begin in Q2 2011.  Additional assay work will be undertaken to evaluate the potential for other economic metals within the poly-metallic system hosted at Porvenir.

Please visit the Golden Phoenix website at: www.golden-phoenix.com.

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.

SOURCE Golden Phoenix Minerals, Inc.

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