Golden Alliance Shareholder Update Letter from the Chairman and Ceo

(via Thenewswire.ca)

Golden Alliance Resources Corp. (TSX-V: GLL, Frankfurt: GA0, "Golden Alliance" or the "Company") is pleased provide a shareholder update and letter from the Chairman and CEO.

Rio Tabaconas Project Update

The Rio Tabaconas gold project (the "Project") 100% owned by the Company covers an area of 8,710 ha (21,523 acres) and is located in the highly prolific metallogenic belt which hosts more than 20 major metal deposits, including the world class gold deposits of Yanacocha, Pierina, Alto Chicama and Fruta del Norte.

As the owners of a project with exceptional potential, I would like to share with you, the investor, the frustration we are experiencing due to the length of time it is taking to complete the Environmental Impact Assessment Study ("EIA") necessary to obtain a Level II drilling permit which will allow for a large program of up to 50,000 meters in phases.

Completing the EIA is a very comprehensive process and is an integral part of the drilling permit application which includes the execution of an extensive consultation process with local communities. This practice is now the norm for mineral exploration projects in Peru. However, due to recent adverse decisions affecting certain projects in Peru, our team feels it is prudent to expand the community consultation process to ensure that community sensitivities are addressed, with respect to the Project, to build legitimacy and credibility and to ensure that all stakeholders will benefit.

The mining authorities with the expanded sensitivities to be addressed in the environmental study wish to implement a more responsible partnership with the community to ensure the protection of all concerns and matters important to the protection of the local way of life and culture. While this permitting process may be taking longer and costing more than initially anticipated, the changes will have a very positive long-term and lasting effect on the relationship with the local community surrounding Rio Tabaconas.

We are driven by the enthusiasm of the significant high grade gold drilling results achieved during the first four years (1998-2002) of exploration. We feel that it would take dozens of property reviews and many years of exploration to potentially find another project like Rio Tabaconas and are pleased to have a project that is advanced to the stage of requiring a Level II drill permit.

Important Highlights:

-So much already discovered on only 6% of the total area of the property

-15 significant high grade gold zones discovered

-Nine compelling drill targets on which to continue drilling

-A 4 km x 2 km trend

-The total property covers >800 square kilometers and is 100% Company owned

In view of the fundamental and future potential of Rio Tabaconas, management maintains a close daily monitor of any potential changes by the new government that takes over on July 28, 2011. The Company is in close contact with many of the new high profile officials. Discussions to date lead us to believe that Peru will continue to be a great mining country in which to invest.

Background & Detailed Strategy

In 2002, exploration activities were suspended on the Project following social unrest which affected several companies in the region. From 2002 to 2009 the Company's management monitored closely the social developments in the Project's region. The Company recognized that appropriate social context needed to exist to begin a dialogue with local community leaders and other stakeholders in order to establish the social legitimacy and to gain access to the Project's area.

Since 2010 under the leadership of Mr. Augusto Baertl, the President of the Company's 100% owned Peruvian subsidiary and Company director, a team of community relations specialists has been assembled. The team members have a successful track record in the management of many similar projects in Peru and have maintained a very close watch on the regional activity where the Project is located. The increased economic benefits of mining in Peru over the last few years have created a more receptive climate for mining and triggered an opportunity for the Company to initiate a dialogue with local leaders and stakeholders to re‑enter the Project.

Peru has been profiled in the press recently due to the national election which has created some apprehension for the financial world. The Company's management has been operating in Peru since 1995 and we believe that this apprehension has been exaggerated and that the newly elected government, similarly to previous ones, knows the importance of the enormous financial contribution that mining has made to Peru; making it one of the fastest growing economies in South America. Management believes that Peru is still a great place to do business and will closely watch all developments put forth by Mr. Humala's government.

The Rio Tabaconas project holds world class discovery potential and we feel that there are very few, if any, projects like it available anywhere that remain untested. Therefore, it is important that management takes the necessary time to deal with all environmental, community, local and regional government requirements and concerns and, at the same time, monitor for any possible changes that the new national administration may propose.

Management has exercised patience since 1998 when the Project was first acquired and we ask our shareholders to support the Company through this longer than anticipated process. We are working closely with national, provincial, municipal leaders and other stakeholders and are advancing towards obtaining of a drilling permit. Our current plan aims to begin drilling activities at the beginning of the second quarter of 2012.

Corporate Development

The Company is focused on developing projects in Peru considered to be one of the leading mining jurisdictions. Peruvian gold mining's contribution to the country's GDP has soared by 260% during the last two decades, significantly above the 135% figure for the country's GDP (information provided by the National Society of Mining, Petroleum, and Energy). Peru is the world's sixth largest gold producer.

In April, management was pleased to announce the appointment of Mr. Normand Champigny as the new President and Chief Operating Officer. Mr. Champigny brings 30 years of knowledge and experience as a senior mining professional. Mr. Champigny is a Geological Engineer and Director and Co-chair of the Corporate Social Responsibility Committee with the Prospectors & Developers Association of Canada. His experience includes having worked in Chile and Latin America for many years.

Management continues to aggressively review projects in order to increase its property portfolio and is actively reviewing its cash requirements to deal with its planned activities. We intend to improve the visibility of the Company's activities for our shareholders and other stakeholders.

The Company was listed just over a year ago and the infusion of Mr. Champigny is viewed as an essential part of its corporate development plan.

About Golden Alliance Resources Corp.

Golden Alliance is a company focused on gold, copper and silver exploration in Peru. The Company has a very strong portfolio of 100%-owned projects totaling 25,000 ha in Peru offering multiple opportunities for significant discoveries. Golden Alliance offers exceptional growth potential for shareholders with an attractive portfolio of highly-prospective exploration projects and a good pipeline of drill-ready acquisition opportunities under review. Golden Alliance is a member of the Grosso Group, a management company with over 18 years of experience in South America, and active in Peru since 1995.

ON BEHALF OF THE BOARD

"Joseph Grosso"

_______________________________

Mr. Joseph Grosso, Chairman & CEO

For further information please contact:

Corporate Communications
Tel: 1-604-687-1828
Toll-Free: 1-800-901-0058

Email: info@goldenalliancecorp.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Readers are encouraged to refer to the Company's public disclosure documents for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation to publicly update or revise any forward-looking statements. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

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