Canyon Resources Raises $4.15 Million With Stock and Warrant Sale

<body.content> <block> <p>GOLDEN, Colo., Sept. 30 /PRNewswire-FirstCall/ — Canyon Resources Corporation , a Colorado-based mining company, today announced that it has raised$4,153,302 through the sale of 2,307,392 units, at a price of $1.80 per unit, in a Private Placement. Each unit is comprised of one share of common stock of Canyon plus a warrant to purchase anadditional share. The warrants have an expiration date of December 1, 2005, and may be exercised at a price of $1.98 per share through December 1, 2004, or at a price of $2.16 per share throughDecember 1, 2005.</p> <p>Lead investor in the financing was Passport Capital LLC, a San Francisco-based hedge fund. After sale of the units, Canyon has 25,413,489 outstanding shares ofcommon stock.</p> <p>”Canyon is delighted with the continued support of our existing shareholders and new shareholders in this financing in our efforts to achieve full value of the 10million ounce McDonald gold deposit in Montana and in our efforts to evaluate and acquire other advanced-stage gold projects,” said Richard H. De Voto, President.</p> <p>In addition toproducing gold from its Briggs Mine in California, Canyon owns the Seven-Up Pete Venture which has invested $75 million in the 10 million ounce McDonald Gold Project in Montana, which is constrainedfrom current development by the anti-mining initiative, I-137. The Company filed suit against the State of Montana seeking to overturn I-137 or to obtain a damage award, which could be as much as$500 million, for the lost value of the Seven-Up Pete properties, including the McDonald Gold Project.</p> <p>Actual results may differ materially from any forward-looking statementwhether expressed or implied in this news release. The following risks and uncertainties which could cause actual results to vary include, but are not limited to: speculative nature of mineralexploration, precious metals prices, production and reserve estimates, production costs, cash flows, environmental and governmental regulations, availability of financing, judicial proceedings andforce majeure events. Most of these factors are beyond the Company’s ability to control or predict. </p> <datasource>Canyon Resources Corporation</datasource> </block><block class=”contact”> <p>CONTACT: Richard H. De Voto, President, or Gary C. Huber, Vice<br/>President-Finance, both of Canyon Resources Corporation, +1-303-278-8464</p></block> </body.content>