American Bonanza Announces $6 Million Bought Deal Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE SERVICES.

American Bonanza Gold Corp. (TSX:BZA)(OTCQX:ABGFF) ("Bonanza" or the "Company") is pleased to announce that it has entered into an agreement with National Bank Financial Inc. (the "Underwriter") under which the Underwriter has agreed to buy from Bonanza, on a bought deal basis, 11,500,000 common shares at an issue price of $0.53 per common share for gross proceeds of $6,095,000 (the "Offering").

The Underwriter has been granted an over-allotment option, exercisable at any time prior to 30 days after the closing date of the Offering, to acquire up to an additional 1,725,000 common shares of the Company at the issue price applicable to the Offering. The Company must file a short form prospectus with the securities regulatory authorities to qualify the common shares for distribution.

The net proceeds from the Offering will be used for exploration and development and general corporate purposes. Closing of the Offering is expected to occur on or about September 29, 2011. The construction phase at the 100% owned Copperstone gold mine in Arizona is nearing completion, and Bonanza is accelerating the planned transition to owner-mining, and intends to accelerate planned drilling of expansion targets at Copperstone as well as pursue potential acquisitions that would expand its production base.

The Offering is being made in all provinces of Canada other than Quebec, Prince Edward Island and Nova Scotia and is subject to the approval of regulatory authorities. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, but may be offered or sold in the United States under applicable private placement exemptions. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Bonanza

Bonanza is re-activating mining at the 100% owned, construction-stage Copperstone gold mine in Arizona. Bonanza has approximately 185 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.

AMERICAN BONANZA GOLD CORP.

Brian Kirwin, President & Chief Executive Officer