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Gold Canyon Comments on Recent Share Price and Trading Volume Concerns

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/06/13 -- In response to enquiries, Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINKSHEETS:GDCRF) ("Gold Canyon" or "the Company") wishes to comment on the Company's recent share price weakness and higher than normal trading volume, which over the past several months has raised concerns amongst its investors. Volatile stock market conditions, particularly for junior mining issuers, and continued concern for the global economy have no doubt contributed to the decline. However, Gold Canyon management is unaware of any specific reason, other than these continuing general market conditions and market trading influences unrelated to Gold Canyon's business discussed below, for the recent weakness in Gold Canyon's common share price as there have been no particular events or material changes in the affairs of the Company to support the decline.

In fact, the Company continues to move forward with its flagship property, the Springpole Gold Project in northwest Ontario, Canada, as well as develop its rare earth interests in Malawi, Africa pursuant to the existing REE Joint Exploration Agreement with the Japan Oil, Gas and Metals National Corporation (JOGMEC). Gold Canyon has cash reserves of more than (Cdn)$10 million, considered to be sufficient to fund current operations through the short to medium term without the immediate need to raise more capital. In the circumstances, management believes that Gold Canyon's current share price significantly undervalues the Company, and with the support of Gold Canyon's board of directors, is currently examining various initiatives and strategic options to remedy this situation.

Management has recently engaged in significant consultation with Gold Canyon shareholders, investment brokers, analysts, institutional traders and investment bankers regarding potential contributing factors to the Company's share price weakness and large trading volumes and believes the following may be attributed, at least in part, to the recent downward pressure and larger trading volumes in the market for Gold Canyon shares:

--  Market participants have indicated that, due to investor fatigue with
    the mining sector, both retail and institutional, and prolonged mining
    sector weakness, resource money managers are experiencing higher than
    normal redemption challenges in their funds and managed accounts,
    causing them to sell shares to raise the cash needed to make redemption
    payments. With respect to Gold Canyon's shares in particular, the
    continued recent demand has resulted in bids to buy at reasonable
    valuation levels, providing the sellers with better liquidity than is
    the case with many other mining issuers, and indeed than had
    historically been the case with Gold Canyon until very recently. 
--  Gold Canyon had historically issued a large number of "flow-through"
    common shares which, because of the associated tax treatment in Canada
    for qualified flow-through mining expenditures undertaken by the
    Company, carry a much lower cost base than regular shares. The lower
    cost base allows resource money managers to sell these shares at prices
    that, despite declining market prices generally, are still profitable,
    providing more attractive optics than selling at a loss. 

Gold Canyon management believes there is reason for optimism. Redemptions are typically a late cycle phenomenon and should start to moderate as the market attempts to develop a bottom, removing one of the primary selling catalysts while higher volumes may indicate that "smart money" buyers are stepping in to take advantage of these current attractive valuations in Gold Canyon shares. Also, the holdings of "spent flow-through" shares is now somewhat reduced, which could eliminate the benefit to investors of selling low cost base shares that are still in a profit position.

More generally, market analysts have suggested there have been hints at a potential turnaround in mid to late 2013. Notwithstanding potential improvements in the outlook for the global economy generally, and potential related benefits to the mining sector in particular, Gold Canyon continues to pursue various initiatives with a view to enhancing shareholder value including:

--  The announcement of an updated resource estimate for the Springpole Gold
    Project, effective September 19, 2012 (see the Company's news releases
    dated October 17, 2012), which included an updated indicated mineral
    resource of 128.2 million metric tonnes at an average grade of 1.07
    grams gold and 5.7 grams silver per tonne for 4.41 million ounces of
    gold and 23.8 million ounces of silver and an updated inferred mineral
    resource of 25.7 million metric tonnes at an average grade of 0.83 grams
    gold and 3.2 grams silver per tonne for 0.69 million ounces of gold and
    2.7 million ounces of silver (see the independent technical report dated
    November 30, 2012 available through the Canadian System for Electronic
    Document Analysis and Retrieval (SEDAR) at www.sedar.com). 
--  Anticipated completion of a Preliminary Economic Study of the Springpole
    Gold Project by SRK Consultants (Vancouver) in or about the first or
    second quarter of 2013, which Gold Canyon management believes to be a
    major milestone that will allow investors to better assess the true
    value of the Company's assets and be a catalyst for unlocking
    shareholder value. 
--  Continued advancement of the Company's Springpole Gold Project through
    the first or second quarter of 2013 including geotechnical drilling;
    continued efforts with respect to advancing environmental assessments,
    facilitating an access road and securing a connection to the Hydro One
    grid; and ongoing consultation with First Nation communities of Cat
    Lake, Slate Falls, Lac Seul and Wabauskang, as well as the Metis Nation
    of Ontario. 
--  Anticipated completion of a mineral resource calculation and the
    assembling of financial data by Mitsui Mineral Development Engineering
    Co., Ltd (MINDECO) of Japan, the contract operator of the program, in or
    about March 2013 with respect to the Company's Chambe Basin rare earth
    elements (REE) joint venture project in Malawi, Africa. Gold Canyon
    management believes this milestone will demonstrate that Gold Canyon's
    REE interests have potential value which may provide future
    opportunities to monetize these non-core interests in order to raise
    non-dilutive capital for continued advancement of the Springpole Gold
--  The recent hiring of Richard Moritz as Vice President of Corporate
    Communications. Richard will focus on raising awareness of the Company,
    its projects and the attractive valuation opportunity Gold Canyon
    represents to both existing and potential new shareholders, particularly
    at the institutional level with the goal of increasing market
    participation, new buyers with cash reserves to match with sellers and
    creating a more positive pricing dynamic. 
--  The recent mandate given by the Company's board of directors to review
    and evaluate a full range of alternatives to provide better transaction
    and trading value and efficiencies for Gold Canyon's US and European
    investors, as well as increase awareness of Gold Canyon and its projects
    throughout these existing, and other potential markets. 
--  The recent mandate given by the Company's board of directors to identify
    and retain a lead investment bank to assist management with its
    communications with retail and institutional investors, advise on future
    financing opportunities and review and evaluate alternatives available
    to the Company to enhance shareholder value. 

Mr. Troy Fierro, Chief Executive Officer of Gold Canyon, added, "The strategic objective of the Company remains unchanged and that is to advance Springpole towards production. We believe completion of the Preliminary Economic Assessment for the Springpole Gold Project, scheduled for Q1/Q2, will unlock value for our shareholders. In the meantime, the Company will continue its efforts to de-risk the Springpole Gold Project, seek value in and from its non-core assets, and broaden the shareholder base of the Company. Gold Canyon remains sufficiently capitalized so there is no immediate need for financing. When markets improve, the Company will have the ability to apply financial resources towards expanding the mineral resource and exploring other targets within the 80,000 acres currently under control at Springpole and will be well positioned to recover value lost during this difficult period."

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 a minority interest in the 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 REE 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

Troy J. Fierro, CEO & Director

Cautionary Note Regarding Forward-Looking Statements

This news release contains statements that constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 or "forward-looking information" within the meaning of applicable Canadian provincial securities legislation (collectively, "forward-looking statements"). Forward-looking statements often, but not always, are identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "targeting" and "intend" and statements that an event or result "may", "will", "would", "should", "could", or "might" occur or be achieved and other similar expressions. Forward-looking statements in this news release include statements regarding the timing and nature of permitting studies, the timing and nature of infrastructure developments and construction, projections of future optimization, production timeline targets, the timing of negotiations with third parties, and the timing and nature of future exploration programs which are dependent on projections which may change as drilling continues, or if unexpected ground conditions are encountered. In addition, areas of exploration potential are identified which will require substantial drilling to determine whether or not they contain similar mineralization to areas which have been explored in more detail. The description of the extent of mineralized zones is not intended to imply that any economically mineable estimate of reserves or resources exists on any of Gold Canyon's projects.

The forward-looking statements that are contained in this news release are based on various assumptions and estimates by Gold Canyon and involve a number of risks and uncertainties. As a consequence, actual results might differ materially from results forecast or suggested in these forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Gold Canyon to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause the actual results to differ include; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; uncertainties concerning resource estimates; results of exploration, availability of capital and financing on acceptable terms, inability to obtain required regulatory approvals, unanticipated difficulties or costs in any rehabilitation which may be necessary, market conditions and general business, economic, competitive, political and social conditions. These statements are based on a number of assumptions, including assumptions regarding general market conditions, timing and receipt of regulatory approvals, the ability of Gold Canyon and other relevant parties to satisfy regulatory requirements, the availability of financing for proposed transactions and programs on reasonable terms and the ability of third-party service providers to deliver services in a timely manner together with other risks and uncertainties disclosed in the section entitled "Risk Factors" in Gold Canyon's Annual Information Form dated April 23, 2012 other information filed with the applicable Canadian securities commissions by or on behalf of Gold Canyon. Although Gold Canyon has attempted to identify important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements, there may be other factors which cause actual results to differ. Forward-looking statements contained herein are made as of the date of this news release qualified in its entirety by this cautionary statement, and Gold Canyon disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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