Gryphon Gold Corporation provided an operational update as of September 30, 2012. Gryphon Gold has been focused on increasing its production from a monthly average rate of approximately 1,000 gold equivalent ounces realized in the first quarter ended June 30, 2012, through expansion of its heap leach operations. The company's goal is to have the processing capability to produce 2,000 to 2,500 gold equivalent ounces per month.

Financial flexibility to fund investments in expanding production capacity. Continued construction of Phase 1B: Heap leach pad expansion: Installation of the high-density polyethylene liner is complete and the Company has commenced crushing over liner material. The new heap leach pad expansion will be ready for ore stacking this fall.

Expanding ore handling capability: Commenced installation of a jaw crusher and second cone crusher as well as expansion of the existing conveyor system. Once online, the system will be able to process 12,000 tons of ore per day. This equipment is necessary to handle the extra capacity of the expanded heap leach pad when the Company begins to add fresh ore to the pad.

Permit submitted: The company has submitted an application to update the existing water flow permit, which will allow for a second set of carbon columns and higher pumping capacity, thus doubling the current solution throughput. The permit is currently under review with U.S. Forest Service and the Nevada Department of Environmental Protection. Bids have been placed for additional carbon columns which can be installed after permit approval.

ADR facility: The company continued to pour and ship gold from its Adsorption Desorption Recovery facility on a weekly basis. Additional efforts to improve operational efficiency. Laboratory facility: Equipment has been ordered to develop a fully functional analytical laboratory, which will allow the company to prepare on-site testing of ore samples within a twenty-four hour period.

The facility is expected to be operational by year-end. Maintenance facility and wash bay: The construction of a temporary maintenance facility and permanent wash bay to clean vehicles and equipment is in progress. The wash bay is necessary to remain in compliance of the operating permit.