Golden Phoenix Signs July 2010 Option Agreement to Acquire 80% Interest in Mhakari Coyote Fault Gold and Silver Project - 24 Month Acquisition Plan Continues

SPARKS, Nev., Aug. 26 /PRNewswire-FirstCall/ -- Golden Phoenix Minerals, Inc. (OTC Bulletin Board: GPXM) is pleased to announce that on July 6, 2010, it entered into a definitive Option Agreement to acquire an undivided 80% interest in the Coyote Fault gold and silver property in Esmeralda County, Nevada, referred to as the Mhakari Nevada Properties excluding Vanderbilt Mine in the Company's Form 8-K filed with the SEC on July 8, 2010 ("Coyote Fault").

Coyote Fault is adjacent to the Mineral Ridge property, which the Company maintains a thirty percent (30%) interest in via its membership interest in Mineral Ridge Gold, LLC; the joint venture entity that owns and operates the Mineral Ridge property with Scorpio Gold. The Option Agreement completes the letter of intent process begun several months ago with Mhakari Gold (Nevada) Inc.

"We believe properties like Coyote Fault that sit adjacent to our Mineral Ridge Gold Project hold significant upside potential," stated Tom Klein, CEO of Golden Phoenix. "The addition of Coyote Fault to our Company's portfolio is a first step in expanding our property base over the next two years."

The Coyote Fault property is comprised of 34 claims.

"Mhakari geologists performed initial reconnaissance on this property," continued Tom Klein. "Their assessment indicates Coyote Fault is one of the primary geologic structures associated with gold mineralization on Mineral Ridge."

No modern mining techniques have been applied to the Coyote Fault property. This gives Golden Phoenix the opportunity to add value to Coyote Fault by providing exploration, permitting, bonding, drilling, and/or financial support.

Please visit the Golden Phoenix website at: http://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 acquiring, developing and mining superior precious and strategic metal deposits throughout North 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.

"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.