Mr. Drew Burgess reports

BONANZA MINING CORPORATION ANNOUNCES PROPOSED SHARE CONSOLIDATION

Bonanza Mining Corp.'s board of directors has approved the consolidation of the company's outstanding common shares on the basis of one postconsolidated share for every three preconsolidated shares. The effective date of the consolidation will be confirmed at a future time, following the company's receipt of acceptance from the TSX Venture Exchange for the consolidation. There will be no change of the company's name in connection with the consolidation.

The board believes that it is in the best interests of the company to provide the board with flexibility to elect to reduce the number of outstanding shares by way of the consolidation. Some of the potential benefits of the consolidation would include:

• Increased investor interest: The current share structure of the company may make it more difficult for the company to attract additional equity financing that may be required or desirable to maintain the company or to further develop its business. The consolidation may have the effect of raising, on a proportionate basis, the price of the company's shares, which could appeal to certain investors that find shares valued above certain prices to be more attractive from an investment perspective.
• Reduced volatility: The higher anticipated price of the postconsolidation shares may result in less volatility as a result of small changes in the price of the company's shares. For example, a nominal price movement would result in a less significant change (in percentage terms) in the market capitalization of the company.

The principal effects of the consolidation would be that:

• The number of shares of the company issued and outstanding would be reduced from 57,056,202 shares to approximately 19,018,734 shares.
• The exercise or conversion price and/or the number of shares issuable under any of the company's outstanding convertible securities, stock options and warrants would be proportionately adjusted after giving effect to the consolidation.