Gold Canyon Closes Bought Deal Private Placement for Gross Proceeds of $10 Million

VANCOUVER, BRITISH COLUMBIA, May 11, 2011 (Marketwire via COMTEX News Network) --

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN

Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINK SHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce that it has closed its previously announced bought deal private placement through a syndicate of underwriters co-led by Cormark Securities Inc. and Fraser Mackenzie Limited and including GMP Securities L.P., Stonecap Securities Inc. and Casimir Capital Ltd. (the "Underwriters") of 1,370,000 flow-through shares of Gold Canyon ("FT Shares") at a price of $3.65 per FT Share and 1,640,000 common shares of Gold Canyon ("Common Shares") at $3.05 per Common Share for aggregate gross proceeds in the amount of approximately $10 million (the "Offering").

The proceeds from the sale of the Common Shares will be used for further exploration and development of the Company's Springpole Gold Project in Ontario and for general corporate purposes.

The proceeds from the sale of the FT Shares will be used to incur Canadian Exploration Expenses (within the meaning of the Income Tax Act (Canada), which will qualify as "flow-through mining expenditures" for purposes of the Income Tax Act (Canada), related to the exploration of the Company's Canadian exploration projects. The Corporation will renounce such Canadian Exploration Expenses with an effective date of no later than December 31, 2011 for federal tax purposes.

The Agents received a cash fee equal to 6% of the gross proceeds from the Offering and that number of broker warrants equal to 6% of the aggregate number of securities sold pursuant to the Offering. Each broker warrant entitles the Underwriters to acquire one common share of the Company at a price of $3.22 per common share for a period of 18 months following the closing date.

The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.

All securities issued pursuant to the financing will be subject to a four month and one day hold period expiring on September 12, 2011.

About Gold Canyon Resources Inc.:

Gold Canyon is engaged in the acquisition and exploration of mineral and precious metals properties. The Company controls a 100% interest in the Springpole Gold - Horseshoe Island Gold, Platinum, Palladium Project and Favourable Lake Poly-metallic property currently under option to Guyana Frontier Mining Corp. pursuant to an option and joint venture agreement entered into in December 2005 - all in the Red Lake Mining District of Ontario, Canada.

Through its wholly owned U.S. subsidiary, Gold Canyon Resources USA Inc., the Company controls a 100% interest in the Cordero Gallium Project situated in Humboldt County, Nevada, U.S.A.

Gold Canyon entered into a Joint Exploration Agreement with the Japan Oil, Gas and Metals National Corporation (JOGMEC) in January 2009.

Additional information can be found on the Company's website: www.goldcanyon.ca

Akiko Levinson, President & Director