American Bonanza to Receive 6.75 Million Shares of Hawthorne Gold Corp.

American Bonanza Gold Corp. has amended the option agreement dated June 7, 2007 with Hawthorne Gold Corp.. Hawthorne will issue to Bonanza 6.75 million common shares of Hawthorne under the amended agreement. On closing of the amended agreement, Hawthorne will own 100% of Bonanza’s Taurus Project near Cassiar, British Columbia.

On closing of the proposed transaction, Bonanza will own approximately 13% of the issued shares of the Hawthorne. Bonanza has agreed to vote the Hawthorne shares with management of Hawthorne, and has agreed to provide Hawthorne with a 15 day right of first refusal on sales of the Hawthorne shares. Issuance of the Hawthorne shares and closing of the sale of the Taurus Project to Hawthorne are subject to the approval of the TSX Venture Exchange.

Hawthorne Gold Corp. is gold exploration and development company with key properties in British Columbia, Canada. Hawthorne is led by well-respected mining leaders Richard Barclay and Michael Beley. Hawthorne’s goal is to become a junior gold producer at the Table Mountain project in 2009 and to continue development of the nearby Taurus deposit, as well as at the Frasergold deposit in British Columbia. The Table Mountain project and Bonanza’s Taurus project are contiguous, and sale will result in the consolidation of these two properties within the Cassiar Gold Camp.