Atna Resources Ltd (C-ATN) - News Release

Atna Resources, Canyon Resources close merger

2008-03-19 06:32 PT - News Release
Shares issued 64,872,588
ATN Close 2008-03-18 C$ 1.31

Mr. David Watkins reports

ATNA AND CANYON ANNOUNCE CLOSING OF MERGER

Atna Resources Ltd. and Canyon Resources Corp. have closed the merger as of March 18, 2008, pursuant to the agreement and plan of merger dated Nov. 16, 2007. Atna has acquired all of Canyon's issued and outstanding shares of common stock, warrants and debentures. Canyon is now a wholly owned United States subsidiary of Atna.

As a result of the merger, Atna has created a strong platform for gold production growth with the following characteristics:

• A multimillion-ounce gold company, highly leveraged to the price of gold;
• Near-term gold production opportunities from the restart of the Briggs mine, and development of the Reward and Pinson projects;
• An exceptional management team with proven skills and vast experience;
• The financial size and strength to ensure continued growth and attract resources;
• A focus on the politically stable western United States (primarily Nevada);
• Strong upside potential from the combined portfolio of gold development, exploration and royalty properties;
• Leverage to the uranium market through carried uranium exploration joint ventures.

David Watkins, chief executive officer and chairman of Atna, said: "This merger combines the management team, resources and financial strength needed to create an exciting junior gold producer, focused on the western United States. We believe that significant shareholder value will be created with a rerating of our share price as a junior gold producer, once the value of this combination is recognized by the market."

Jim Hesketh, the new president and chief operating officer of Atna, added: "Our priority will be to restart operations at the Briggs gold mine in California, with gold production projected to commence in early 2009. The planned development of our Reward gold project in Nevada will significantly add to our production stream, subject to the issuance of the final mining permits and financing. In addition, we expect our venture partner, Pinson Mining Co., a subsidiary of Barrick Gold, to continue the exploration and underground development of the Pinson gold project in Nevada. The projected cash flow from these three projects, combined with potential future cash flows from our royalty properties, will allow us to achieve our goal of becoming a sustainable, growth-oriented, profitable, gold producer."

Pursuant to the terms of the merger agreement, each share of Canyon common stock issued and outstanding was converted into the right to receive 0.32 common shares of Atna, plus cash in lieu of any fractional shares. Canyon ceased trading on the American Stock Exchange at the close of market on March 18, 2008. Additional information concerning the conversion of Canyon shares to Atna shares can be found in the Canyon proxy statement mailed to shareholders on Jan. 25, 2008. This information is also available in the registration statement on Form F-4A filed by Atna with the U.S. Securities and Exchange Commission (SEC) on Jan. 17, 2008.

We seek Safe Harbor.