Gunpowder Gold Corp. Announces Closing of $200,000 Private Placement and Phase 1 Exploration Update at Its Dome Rock Property in the Walker Lane Belt, Arizona

MANCHESTER, England, May 3, 2011 /PRNewswire/ -- Gunpowder Gold Corporation (Gunpowder or "the Company") (OTC Bulletin Board: GUNP) is pleased to announce that it recently closed a private placement of 235,294 units at $.85 per unit for a total offering price of $200,000.  Each unit consists of one share of common stock of the Company and one non-transferable share purchase warrant.  The warrants are exercisable at a price of $1.00 per share.  The private placement was fully subscribed to by a non-U.S. Corporation.  

In other corporate news, initial results of the Phase one exploration program were expected to be released as early as April 15, 2011. However due to a backlog at the laboratory, results were delayed but are expected shortly.  

The Phase one exploration program includes stream sediment sampling wherein multiple stream sediment samples are taken on several of the washes draining the claims. Sample locations will be determined in the field and established by GPS. Samples are submitted for 34 element analysis by ICP (inductively-coupled plasma) and gold analysis by gold assay and ICP finish. The 34 element analysis will cover "pathfinder minerals" which often occur with gold deposits.

Outcrop merit sampling will also be conducted during stream sediment sampling and chip samples will be taken for assaying. Fire assays of previously taken samples will also be undertaken. The company will fire assay samples taken from BHR claims 1 through 61 together with 5 samples taken from a vein located in the BHR 62 claim.

Further recommendations will be provided to management so that other exploration may take place on the property as expeditiously as possible.

The 1,280 acre Dome Rock property, consists of 62 unpatented mining claims in the Dome Rock Mountains in the northwest area of the State of Arizona, in the fairway of the world famous Walker Lane Gold Trend. The Walker Lane has historically produced over 50 million oz of gold and 400 million oz of silver.

Dome Rock is just 9 miles south of the famous Copperstone mine which is located at the Northern tip of the Dome Rock Mountain chain. To this day, Copperstone lays claim to the largest gold discovery in Arizona in recent history. Cyprus Gold's profitably open pit mined 500,000 oz of gold. American Bonanza Gold Corporation is presently exploring the remaining underground resource, which contains a 0.363 oz/t oxide gold resource with 313,000 ounces of gold in the Measured and Indicated categories and 256,000 ounces of gold in the Proven and Probable Mineral Reserves category.

About The Company

Gunpowder Gold Corporation is a gold exploration Company in pursuit of high impact gold projects in the Walker Lane Trend, as it extends into Arizona. The Company has developed a portfolio of strategically-located claim blocks in the fairway-tract of the trend, known as the Dome Rock Project. Dome Rock is nine miles from American Bonanza's Copperstone mine, the largest gold discovery in Arizona's recent history. The Copperstone open pit and underground workings are located at the northern tip of the Dome Rock Mountains in southwest Arizona.

Shareholders and the public are encouraged to visit www.GunpowderGold.com for more information and to request an Investor Package.

Safe Harbor Statement:

This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. 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, regulatory incentives, the development of new business opportunities, and projected costs, revenue, profits and results operations. 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 new projects and development stage 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 any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any 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-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission. More information is included in the company's filings with the Securities and Exchange Commission, and may be accessed through the SEC's website at www.sec.gov.

www.GunpowderGold.com

SOURCE Gunpowder Gold Corporation