Mr. Drew Burgess reports

BONANZA MINING CORPORATION ANNOUNCES PRIVATE PLACEMENTS

Bonanza Mining Corp. has proposed to raise the following funds by way of private placements:

• Up to $275,000 by the sale of up to 11 million units at a price of 2.5 cents per unit, with each unit to consist of one common share and one share purchase warrant, with each warrant to entitle the holder to purchase one additional common share at a price of five cents for a period of two years from closing; and
• Up to $960,000 by the sale of up to 32 million flow-through units at a price of three cents per flow-through unit, with each flow-through unit to consist one flow-through common share and one share purchase warrant, with each warrant to entitle the holder to purchase one common share at a price of seven cents for a period of two years from closing.

The offering will be made available to certain subscribers pursuant to B.C. Instrument 45-536 (Exemption from Prospectus Requirement for Certain Distributions Through an Investment Dealer) and in similar instruments in other jurisdictions in Canada. In accordance with the requirements of the investment dealer exemption, Bonanza confirms that there is no material fact or material change about Bonanza that has not been generally disclosed.

The private placements will be non-brokered; however, the company may pay finders' fees in accordance with the rules and policies of the TSX Venture Exchange. The private placements will be subject to the completion of formal documentation and the receipt of all necessary regulatory approvals, including exchange acceptance.

Certain insiders of the company may participate in the private placements, with full particulars of such participation to be included in the news release announcing the closing of these private placements. The participation of insiders in the offering would constitute a related-party transaction within the meaning of exchange Policy 5.9 and Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company intends to rely on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of MI 61-101 on the basis that the fair market value (as determined under MI 61-101) of insider participation in the offering would not exceed 25 per cent of the company's market capitalization.

The company also provides the following information in connection with the offering:

• The proceeds from the unit private placement will be used for general working capital purposes, including payments to certain non-arm's-length parties for prior (approximately $150,000) and continuing professional and general administrative services.
• There will be no payments to persons conducting investor relations activities.
• All of the proceeds from the flow-through-unit private placement will be used for further exploration at the company's MC property situated in the Skeena mining district of British Columbia.
• All securities issued pursuant to the offering will be subject to a four-month-and-one-day hold period under applicable Canadian securities laws, as well as to the exchange hold period in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside of Canada.

We seek Safe Harbor.