Mr. Brian Kirwin of American Bonanza Gold reports

AMERICAN BONANZA ANNOUNCES SHAREHOLDER APPROVAL OF PLAN OF ARRANGEMENT

American Bonanza Gold Corp. shareholders have approved the proposed business combination of American Bonanza and Kerr Mines Inc. previously announced on April 14, 2014, along with the debt settlements previously announced on May 2, 2014.

The transaction was approved by American Bonanza's shareholders at the company's annual general and special meeting held on June 20. At the meeting, 66,657,944 votes were cast by ballot in connection with the special resolution approving the transaction, with 65,725,403 votes cast for the motion (98.6 per cent) and 932,541 votes cast against the motion (1.4 per cent). A voting results report has been posted under American Bonanza's SEDAR profile.

Pursuant to the debt settlement, American Bonanza is expected to issue an aggregate of 886,790,228 common shares to settle the indebtedness at a price of 2.5 cents per BZA share.

The transaction is expected to be completed on or about June 27, 2014, upon satisfaction or waiver of all of the conditions set out in the arrangement agreement entered into by American Bonanza, Kerr Mines and a wholly owned subsidiary of Kerr Mines on April 10, 2014, including approval by the Supreme Court of British Columbia at a hearing scheduled for June 25, 2014, and the approval of the Toronto Stock Exchange. Upon completion of the transaction, Kerr Mines, through Kerr Mines Subco, will acquire all the outstanding shares of American Bonanza through the issuance of 0.53 of a Kerr Mines common share in exchange for each American Bonanza common share. Following completion of the transaction, American Bonanza will be delisted from the TSX.

Full details of the terms of the transaction are set out in American Bonanza's management information circular dated May 16, 2014, which is available on SEDAR.

We seek Safe Harbor.