Golden Alliance Resources Corp. Announces Private Placement

Oct 17th, 2011 - Golden Alliance Resources Corp. (TSX-V: GLL, Frankfurt: GA0, "Golden Alliance" or the "Company") is pleased to announce a non-brokered private placement financing of up to 5,000,000 units at a price of $0.20 per unit (the "Offering").

Each unit will be comprised of one common share and one transferable warrant. Each warrant will entitle the holder, on exercise, to purchase one additional common share of the Company at a purchase price of $0.30 per warrant share for 18 months from the date of issue of the warrant. The warrant exercise period may be accelerated if: (a) the closing market price for the Company's common shares on the TSX Venture Exchange is greater than $0.35 per share for a period of 10 consecutive trading days; and (b) the Company has obtained the drilling permit on the Company's Rio Tabaconas project in Peru; then the Company may deliver a notice notifying the warrant holder that the warrants must be exercised within 30 days from the date of delivery of such notice, otherwise the warrants will expire on 31st day after the date of delivery of the notice. The accelerated exercise shall not apply until the expiration of the four-month hold period from the date of issuance required under TSX Venture Exchange policies and rules, and securities laws that are applicable to the Company. A finder's fee may be payable on part of the financing.

The proceeds from the Offering will be used to advance exploration projects in Peru, in particular, the completion of an environmental impact assessment and related community relations activities for obtaining a drilling permit on its Rio Tabaconas project, and for general working capital. This financing is subject to regulatory approval and the private placement securities will be issued subject to a minimum four-month hold period from the date of issuance. Directors, officers and employees of the Company may participate in a portion of the financing.


About Golden Alliance Resources Corp.

Golden Alliance is a company focused on gold, copper and silver exploration in Peru. The Company has a strong portfolio of projects in Peru that offers multiple opportunities for significant discoveries and numerous attractive 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

"Normand Champigny"
Mr. Normand Champigny, President & COO



For further information please contact:

Golden Alliance Resources Corp.
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 does not constitute an offer to sell or a solicitation to sell any securities in the United States. The securities have not been, nor will they 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, or for the account or benefit of, U.S. persons absent U.S. federal and state registration or an applicable exemption from the U.S. registration requirements.

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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