Golden Predator Acquires Mineral Hill Alkalic Gold Property, Crook County, Wyoming

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 12, 2009) - Golden Predator Royalty and Development Corp. (TSX VENTURE:GPD) (the "Company") announces that it has signed a letter agreement with Bronco Creek Exploration, Inc. and Mineral Hill, LP pursuant to which the Company will lease the Mineral Hill Property, consisting of 20 patented and 69 unpatented mining claims located in the Mineral Hill District, Crook County, Wyoming. History & Geology The Property is located in Crook County, Wyoming, approximately 23 kilometers east of Sundance, WY, and consists of 69 unpatented lode mining claims and 20 patented claims comprising approximately 1,430 acres of mineral rights and patented mining claims. The Mineral Hill Mining District is one of the few known alkaline gold systems in Wyoming, where gold mineralization is associated with the rare class of alkaline igneous rocks. Similar systems in Wyoming include the Rattlesnake Hills, currently being explored by Evolving Gold Corp. (TSX VENTURE:EVG), the nearby Sundance Property, which is currently being explored by Newmont North America Exploration Limited and Rare Element Resources Ltd. (TSX VENTURE:RES), and Goldcorp Inc.'s active Wharf Mine which is currently producing gold associated with alkaline rocks 15km east of the Mineral Hill District. The link between gold mineralization and alkaline rocks is also known from many examples in the world, including some of the world's largest gold deposits such as the Cripple Creek deposit in Colorado, Porgera in Papua New Guinea, and Ladolam on Lihir Island. The Mineral Hill district is ringed by drainages that contain alluvial gold, and placer mining has taken place since the 1870's. Lode mines were subsequently developed on high-grade epithermal style gold veins, and milling operations were active in the district in the 1890's through the 1930's. Even with the history of placer and lode production, only limited drilling and exploration has taken place in the district, and little is known about the subsurface environment. Since most of the district is covered by vegetation and thick soils, much of the district has yet to be explored. While historic mining activities in the Mineral Hill district have focused on high grade epithermal style gold veins and alluvial gold deposits, drilling on the Property by Bronco Creek in 2007 demonstrated the presence of porphyry-style Au-Cu mineralization in the district, which will be a target of the Company's upcoming exploration program. This style of mineralization has not been previously recognized in the region, but appears to be similar to other Au-Cu deposits known to be associated with alkaline igneous systems around the world. The discovery of previously unrecognized porphyry style gold and copper mineralization in 2007 underscores the lack of previous exploration and potential of the district. The intrusive complex at Mineral Hill is one of numerous Tertiary alkaline intrusive centers in northeastern Wyoming and west-central South Dakota, and gold mineralization and hydrothermal alteration are well developed in several of those complexes. Production from nearby alkaline systems across the state border in South Dakota has taken place for over a century and continues today. The Mineral Hill district consists of a ring-shaped, muti-phase alkaline intrusive complex with a central diatreme complex. The diatreme pipe in the center of the district exhibits intense potassic and sulfide alteration, and gold and copper mineralization appear to be best developed in zones adjacent to the diatreme pipe. High grade epithermal style gold veins that were the targets of historic mining activity were hosted in breccias along the western margin of the pipe, but the newly recognized zones of copper and gold mineralization are located in monzonitic intrusive rocks along the north side of the diatreme. The alkaline rocks at Mineral Hill include very mafic rock types, which distinguishes the complex from others in the area, and may explain its apparent endowment in copper; a characteristic shared with other mafic alkaline complexes in the world. The styles of mineralization and alteration observed during Mineral Hill's limited exploration history are typical and characteristic of mineralization associated with alkaline systems. Porphyry systems related to alkaline intrusions tend to contain significant gold in addition to base metals, and thus represents a principal exploration target. Pending issuance of permits, drilling is slated to begin this fall. Initial drilling will be focused in the area of newly recognized porphyry-style gold and copper mineralization as well as the epithermal style high grade gold veins targeted by the historic mining operations in the district. Additional drilling will be directed at several structural targets developed by Bronco Creek geologists. Transaction Terms As consideration for the Lease the Company will pay a sliding scale net smelter returns royalty on gold production, ranging from 2.5% where gold is less than $400/oz to 6% where gold is greater than $1,300/oz, and a fixed 3% nsr royalty on minerals other than gold. Following a bankable feasibility study the Company may repurchase 0.5% of the royalty for $500,000 and an additional 1% for USD $1,500,000 per 0.5%. In addition, the Company is obligated to make advance royalty payments totaling $345,000 over the next four years and $150,000 each year thereafter, issue a total of 500,000 shares over the next four years, and incur exploration expenditures totaling $1,550,000 by December 31, 2012 and an additional $750,000 per year thereafter until a bankable feasibility study is completed. Payments of $75,000, the issuance of 50,000 shares and exploration expenditures of $300,000 by December 31, 2010 are firm commitments of the Company. The agreement is subject to several conditions, including a satisfactory due diligence review by Golden Predator and all required regulatory approvals. Travis Schwertfeger, Exploration Manager for Golden Predator Mines US Inc., the Company's wholly-owned Nevada subsidiary, is the Qualified Person for the Mineral Hill Property and is responsible for the technical content of this news release. About Golden Predator Royalty & Development Corp. Golden Predator's corporate mandate is to establish a self-funded precious metal exploration company with an immediate focus on exploring for and developing world class gold deposits in the Tintina Gold Belt and the Rocky Mountain Alkalic Gold Province. The Company seeks internal revenue generation from early high grade precious metals production in Nevada augmented by increasing revenues from its royalty portfolio. In the Yukon, in 2009 the Company is aggressively exploring its three Yukon properties, Gold Dome, Brewery Creek, and Antimony, in the prolific Tintina Gold Trend through its wholly owned subsidiary True North Mining Corp. Brewery Creek currently is authorized under mining leases, a Type A water license and a production license. In Nevada, Golden Predator is planning to drill a number of its properties with bonanza-style gold mineralization in 2009 with the intent of identifying one or more properties for near term production of small-tonnage high grade ores. The Company intends, through its strategic use of its Taylor Mill near Ely, Nevada and a facilities use agreement at EMC Metals Corp.'s Springer Facility in Pershing County, Nevada, to become a mid-tier precious metals producer. Golden Predator is partially self-financed through its passive pre-production royalty stream from a portfolio of properties, anticipated to yield approximately $1.2 million during 2009. The Company owns royalties on several known deposits including a portion of the Barrick Bald Mountain property, the Pan deposit of Midway Gold, significant portions of US Gold's Tonkin Springs deposit and Evolving Gold's Rattlesnake project. This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and Golden Predator's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Golden Predator assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change. This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.