Gryphon Gold Announces Financial Results for 1st Quarter Ended June 30, 2010

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/13/10 -- Gryphon Gold Corporation (TSX: GGN)(OTCBB: GYPH) (the 'Company') reported a net loss of $392,593or $0.01 from continued operations and net income of $653,949 or $0.01 from discontinued operations compared to a net loss of $395,716 or $0.01 per share in the same period in the prior year.

During the quarter ended June 30, 2010:

--  On April 23, 2010, the Company sold its wholly owned subsidiary, Nevada
    Eagle Resources LLC to Fronteer Development (USA) Inc. for $4,750,000.
    Fronteer paid $2,250,000 in cash and $2,500,000 by assuming Gryphon
    Gold's obligations under a convertible note, which was retired. In
    addition, Gryphon Gold retained the Copper Basin property located in
    Idaho.

--  During the quarter ended June 30, 2010, approximately 21 holes and 5,580
    feet of reverse circulation drilling and 3 holes and 110 feet of
    metallurgical core drilling was completed on the Borealis Property. The
    results of this drill program can be found on the Company's press
    release dated July 28, 2010.

--  The Company retained Mr. Matthew A. Fowler of Sharp Executive
    Associates, Inc as Interim Chief Financial Officer.

--  On June 16, 2010, the Company completed a private placement of 1,464,429
    units at Cdn$0.14 for gross proceeds of $200,000 (Cdn$205,020). Each
    unit consisted of one common share and one half series M warrant. Each
    series M warrant entitles the holder to purchase a common share at a
    price of US$0.20 per share for a period of 24 months. The Company has a
    right to force warrant holders to exercise warrants, if the common share
    price of the Company remains equal to or greater than, Cdn$0.60 per
    common share, for a period of twenty consecutive days.

On August 1, 2010, the Company appointed Ms. Lisanna M Lewis as Vice President (formerly Controller) of the Company. Ms. Lewis will continue to serve as Treasurer and Corporate Secretary to the Company.

Exploration expenses during the quarter ended June 30, 2010 were $385,639 or 38% of our total expenses compared to $277,453 or 63% of our total expenses in the prior year. Most of the exploration costs recognized in the current quarter were for completing all ongoing property lease payments and a small oxide drill program. During the quarter ended June 30, 2010, approximately 21 holes and 5,580 feet of reverse circulation drilling and 3 holes and 110 feet of metallurgical core drilling was completed on the Borealis Property. There was no drilling in the prior year's comparable quarter.

Management salaries and consulting fees in the quarter ended June 30, 2010 were $313,928 compared to $95,764 incurred in the quarter ended June 30, 2009. Total non-cash compensation expense due to the recognition of costs related to stock options, was $40,139 in the quarter ended June 30, 2010 compared to the prior year's fiscal first quarter of $49,364. Management salaries and consulting fees during the quarter increased due to the CEO returning to full time, the hiring of a VP of Exploration and a bonus of $97,500 paid to the CEO. General and administrative costs increased to $139,833 compared to $56,342 the prior year's quarter as a result of our efforts to increase investor relations activity. Legal and audit fees for the period were $57,413, an increase from the prior year's quarter of $23,107. These costs increased due to the sale of Nevada Eagle Resources and the Option Agreement with Sage. Travel and accommodation costs during the quarter ended June 30, 2010 were $33,538, compared to $4,914 expended on travel in the prior year's comparable quarter. The increase in travel and entertainment cost is due primarily to travel costs incurred in relation to the Option Agreement with Sage.

We hold certain securities for trading. We receive these securities as partial payment of lease obligations for Nevada Eagle exploration properties. When we receive these shares, they have trading restrictions and we cannot sell them for approximately four to six months from the date of receipt. During the quarter ended June 30, 2010, we sold a number of these securities and received $73,810 in proceeds and recorded a realized gain of $19,060. This realized gain was partially offset by unrealized losses recorded in prior reporting periods as we reduced the carrying value of the securities to their quoted market value.

On Behalf Of The Board Of Directors

John Key, CEO

Gryphon Gold Corporation

ABOUT GRYPHON GOLD:

Gryphon Gold is a Nevada-focused gold exploration and potentially a production company. Its principal gold resource, the 1.4 million ounce (measured and indicated) and 1.1 million ounce (inferred) Borealis deposits, is located in the Walker Lane gold belt of western Nevada. The Borealis gold system is one of the largest known volcanic-hosted high-sulphidation gold bearing mineralized systems in Nevada.

Cautionary Note to U.S. Investors concerning estimates of Measured, Indicated and Inferred Resources: This press release and the Pre-Feasibility Study referenced in this press release use the terms 'Measured Resources', 'Indicated Resources', 'Measured & Indicated Resources' and 'Inferred Resources.' We advise U.S. investors that while these terms are defined in and required by Canadian regulations, these terms are not defined terms under the U.S. Securities and Exchange Commission ('SEC') Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. 'Inferred Resources' have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of a feasibility study or pre-feasibility study, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant 'reserves' as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.

This press release contains 'forward-looking statements' and 'forward-looking information' within the meaning of Canadian and United States securities laws, which may include, but is not limited to: 1) resource estimates on the Borealis resource, pediment exploration plans and other plans, projections, estimates and expectations; 2) statements regarding the proposed Phase 2 drilling program and the potential to increase Measured and Indicated Resource estimates and contained gold ounces at the Borealis property 2) statements with respect to the expected terms of the option agreement and joint venture agreement. Such forward-looking statements and forward-looking information reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risk that further drilling will not convert Inferred Resources into Measured and Indicted resources or increase contained gold ounces, the risk that further drilling will not be completed as currently anticipated or at all, that financing for the development of the Borealis Project may not be available on terms satisfactory to Gryphon and the risks and uncertainties outlined under the section headings 'Forward-Looking Statements' and 'Risks Factors' in Gryphon's annual report on Form 10-K, as filed with the SEC on June 28, 2010, under the section heading 'Risk Factors' and in Gryphon's most recent financial statements, reports and registration statements filed with the SEC (available at www.sec.gov) and with Canadian securities administrators (available at www.sedar.com ). Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. We do not undertake to update forward-looking statements or forward-looking information, except as may be required by law. Full financial statements and securities filings are available on Gryphon's website: www.gryphongold.com and www.sec.gov or www.sedar.com.

Contacts:

Gryphon Gold Corporation

John L. Key

CEO

775 315-4828
jkey@gryphongold.com


Gryphon Gold Corporation

Lisanna M. Lewis

VP, Treasurer, IR

604 261 2229
llewis@gryphongold.com
www.gryphongold.com