American Bonanza Receives Final Major Permit for the Copperstone Gold Mine
10:45 EDT Wednesday, April 20, 2011

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 20, 2011) -American Bonanza Gold Corp. (TSX:BZA)(OTCQB:ABGFF) ("Bonanza"or the "Company") is pleased to announce that it has received the final key permit required for gold mining and processing at the 100% owned Copperstone gold mine in Arizona. The aquifer protection permit (the "APP") was issued by the Water Quality Division of the Arizona Department of Environmental Quality(the "ADEQ") as aquifer protection permit number P-106172.
The process for obtaining the APP began in April, 2010 with the submission of the administratively complete permit application, and was completed in about one year. Related to the Company's receipt of the APP, the U.S. Bureau of Land Management (the "BLM") has also issued their final project approval to Bonanza.
A milling and flotation plant was purchased in 2010 and is currently being prepared for immediate startup of the construction phase at Copperstone. Mobilization of equipment for underground mining has also begun. Construction of the ore processing facilities and underground mining development will occur concurrently, with the production of gold on schedule for the third quarter of 2011. The project remains on budget.
Mr. Brian Kirwin, President, observed: "This permit is a major milestone for Bonanza. With the approval of the aquifer protection permit, the Copperstonegold mine is now in receipt of all major permits. Bonanza and its contractors have commenced construction of the plant and underground pre-development, andt he project is on schedule and on budget. With a strong treasury, Bonanza anticipates an exciting year for our shareholders as we bring the Copperstone gold mine into production."
About Bonanza
Bonanza is re-activating mining at the 100% owned, construction-stage Copperstone gold mine in Arizona. Bonanza has approximately 180 million shares outstanding and is permitted and fully funded through to production, with no debt and no hedges. For more information please visit Bonanza's website at

www.americanbonanza.com

.
www.americanbonanza.com

.
AMERICAN BONANZA GOLD CORP.
Brian Kirwin, President & Chief Executive Officer
This news release includes certain statements that may be deemed"forward-looking statements". All statements in this release, other thanstatements of historical facts, including the likelihood of commercial miningare forward-looking statements. Although Bonanza believes the expectationsexpressed in such forward-looking statements are based on reasonableassumptions, such statements are not guarantees of future performance and actualresults or developments may differ materially from those in the forward-lookingstatements. Factors that could cause actual results to differ materially fromthose in forward-looking statements include unsuccessful exploration results,changes in the price of gold, unanticipated changes in key management personneland general economic conditions. Mining exploration and development is aninherently risky business. Accordingly the actual events may differ materiallyfrom those projected in the forward-looking statements. For more information onBonanza and the risks and challenges of its business, investors should reviewBonanza's annual filing on Form 20-F with the U.S. Securities Commission and itshome jurisdiction filings that are available at www.sedar.com.
www.sedar.com

.
FOR FURTHER INFORMATION PLEASE CONTACT:
Brian KirwinAmerican Bonanza Gold Corp.President & Chief Executive Officer1-877-688-7523info@americanbonanza.comwww.americanbonanza.com