Gold Canyon Announces High Grade Gallium Discovery In Nevada.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--May 16, 2001

MINERALIZED M-FAULT ZONE IS AT LEAST

1700 METERS (5250 FEET) IN LENGTH AND 135 METERS (425 FEET) IN

WIDTH AVERAGING 82.5 GRAMS OF GALLIUM PER METRIC TONNE (2.70 OZ.

PER TONNE)

Gold Canyon Resources Inc. (CDNX:GCU) is pleased to announce positive results on the initial due diligence sampling on the McDermott (Cordero) gallium property situated near the town of McDermitt in Humboldt County, Nevada. The company has received Final Assay Certificates from Inspectorate - Rocky Mountain Analytical Labs in Reno, Nevada for samples collected as part of its Due Diligence program. All samples are now being sent to Chemex Laboratories for additional independent check analysis. These results will be announced upon receipt. Rock sample results from channel samples and selective sampling of pit walls exceeded expectations based on historic sampling in the area.

Messrs. Robert Carrington and Nathan Tewalt, Gold Canyon's Geological Consultants for gallium, have stated that "consistent with Gold Canyon's objectives, the Cordero property has excellent potential to develop into a significant primary gallium deposit. At present the World's supply of gallium is derived as a by product of aluminum and zinc production. The Cordero property has the potential to become the only mine in the world which produces gallium as its primary product.

Check sampling of prior sample sites with anomalous gallium has confirmed the potential for high grade gallium mineralization, with a peak value of 145.6 grams per tonne. Samples from new zones which had not previously been sampled returned values up to 222.6 grams per tonne. To the best of our knowledge, the property represent the highest grade, surface, bulk mineable gallium target in North America.

The mineralized M-Fault Zone (MFZ), as identified to date, is at least 1700 meters (5260 feet) in length and 135 meters (425 feet) in width, and remains open along strike. Historic mining in this zone encountered comparable oxide mineralization to depths as great as 500 feet. The average of all samples collected within the better exposed Corderito portion of the MFZ contain 82.5 grams of gallium per metric tonne (2.70 oz. per tonne). Current spot gallium prices as quoted by Alfa Aesar (http://www.alfa.com) on May 15, 2001 are $4470 per kilogram; at that price, this zone would have a gross in place value of $368.78 (US) per tonne. Even at a historic trading price of $500 (US) per kilogram, the property appears to have significant potential.

Known mineralization is associated with a unique alteration and geochemical package which may explain why the deposit was overlooked for so long. The main zone lies beneath one to five meters, (3 to 16 feet) of shallow, unconsolidated, alluvial cover, and is completely oxidized. Although no resource estimates have been made at this time, mapping and sampling results indicate both structural and stratigraphic hosts to mineralization may be important.

The property is likely to be amenable to SX-EW (Solvent Extraction - Electro Winning). The SX-EW process is typically used in copper oxide deposits, where ores containing $8.00 per tonne are profitably mined.

Limited sampling of deeper, sulfide rich zones, intersected in historic mine workings yielded samples ranging from 25 to nearly 30 grams per tonne. It is thought that this sulfide zone could yield much of the acid necessary for an SX-EW system as well as provide future gallium reserves beyond the oxidized portion of the system.

The property is ideally situated both from a political aspect and with respect to infrastructure. Excellent infrastructure is available in close proximity to the property. The property is accessible by paved road from the nearby town of McDermitt where all basic services are available, and three-phase industrial power extends to the edge of the property. Sufficient ground water is available for mining and milling operations, yet the water table is consistently below expected open pit limits. The area's mild, arid climate minimizes future environmental concerns such as acid drainage and erosion."

Gold Canyon currently holds an option to acquire mineral rights for resources other than gold and silver on the McDermott gallium property and is currently continuing its due diligence with respect to the property. Messrs. Carrington and Tewalt are currently preparing recommendations and budgets for proposed work programs and expect to deliver these to Gold Canyon by early June.

Gold Canyon has until May 29, 2001 to provide notice of its intent to exercise its option on the Cordero property. Gold Canyon is pursuing potential strategic alliances with key domestic and international interests in the exotic metals market to assist in rapidly advancing gallium properties with economic potential towards production.

For those unfamiliar with Gold Canyon, additional information can be found on the Company's website: http://www.gcu-vse.com.

GOLD CANYON RESOURCES INC. Michael Levinson, Chairman of the Board, President & Director

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