Gryphon Gold Corporation has suspended gold production at its Borealis Property due to equipment failure at its Adsorption Desorption Recovery (ADR) refining facility. The failure of the ADR facility's boiler has impacted production as the company is unable to properly heat the strip solution which enables the company to extract the gold. A replacement boiler is currently being inspected and, should it pass inspection, the company anticipates it to be delivered, installed and operating by month end provided the companyis able to continue to fund operations. The company is loading the expanded heap leach pad, have installed the conveyor system and are completing the installation of the new crushers. The company has cut back measurably on the operating staff in the meantime to reduce costs.

The Company also announced that Terence J. Cryan resigned his position as Director, effective January 1, 2013. In his letter of resignation, he noted that the increase of other commitments have impacted his ability to properly fulfill his role as a director for the company.