CANYON RESOURCES LIMITED — Capital/Financing Update 2011

Nov 10, 2011

Canyon Resources Limited ACN 140 087 261 Level 3, 10 Outram Street West Perth WA 6005 www.canyonresources.com.au

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11 November 2011

Placement to Raise $3.7M to Accelerate Gold Exploration Programmes in Burkina Faso Drilling to commence imminently, following-up previous highgrade intersections of up to 4m @ 50.68g/t gold

West African gold exploration company Canyon Resources Ltd (“Canyon” or the “Company”) is pleased to announce that it has agreed to raise up to approximately $3.74 million before costs under a placement of up to approximately 7.95 million ordinary shares at $0.47 per share to sophisticated and professional investors (the “Placement”). Hartleys Limited is Broker to the Offer.

Canyon received very strong support for the Placement from existing shareholders as well as from domestic and international institutional clients of Hartleys Limited. In addition, Canyon’s Burkina Faso drilling contractor has committed to subscribe $500,000 in the Placement, in a strong demonstration of its belief in the potential of Canyon’s projects.

Funds raised from the Placement will allow Canyon to accelerate is planned exploration programmes in Burkina Faso, with a focus on follow-up drilling at its Tao and Taparko North Projects, from which highly encouraging results were received from Canyon’s drilling this year.

At the Tao Project, Canyon has completed a 7,005m reverse circulation programme at its Tondoby Prospect, which successfully delineated a mineralised strike of over 2.5km, which remains open in all directions. Significant results included:

• 20m @ 11/0g/t Au from 56m, including 4m @ 50.68g/t Au (TDRC016)

• 20m @ 4.01g/t Au from 64m, including 4m @ 15.10g/t Au (TDRC029)

• 20m @ 4.6g/t Au from 44m, including 4m @ 19.01g/t Au (TDRC064)

A full table of significant results was released to ASX on 8 September 2011.

The exploration programme at Taparko North with follow up large gold and base metal anomalies recently identified by Canyon, including a contiguous +20ppb gold anomaly defined over a 10km strike length, and two parallel polymetallic anomalies each over 4km in length.

Commenting on the success of the Placement, Canyon’s Managing Director Phil Gallagher stated, “ The strong support for the Placement demonstrates the significant investor interest Canyon is attracting on the back of our exciting exploration results. We are pleased to secure this funding which now gives the Company capacity to expand its drilling programmes at both the Tao and Taparko North Projects, as well as fast track exploration on its recently acquired Wilier, Derosa and Pinarello Projects in Burkina Faso”.

Tranche 1 of the Placement, being approximately 6.77 million shares is subject to shareholders ratifying previous securities issued by Canyon during calendar year 2011 to refresh Canyon’s issuing capacity for the purposes of ASX Listing Rule 7.1. These previous share issues are expected to be ratified at Canyon’s upcoming Annual General Meeting on 22 November 2011.

The tranche 2 placement of approximately 1.18 million shares is subject to shareholders approving the issue of those securities for the purposes of ASX Listing Rule 7.1 at a general meeting of the Company to be held in mid-December 2011.

Enquiries:

Phil Gallagher Rhod Grivas Managing Director Chairman T: +61 8 9413 7300 T: +61 419 919 321 E: pgallagher@canyonresources.com.au

The information in this report that relates to Exploration Results has been compiled by Mr Chris Connell who is an employee of the Company. Mr Connell is a member of the Australian Institute of Geoscientists. He has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity to which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Chris Connell consents to the inclusion of the information in the form and context in which it appears.