Kerr Mines Inc. ("Kerr Mines") (TSX:KER) and American Bonanza Gold Corp.
("American Bonanza") (TSX:BZA)(OTCBB:ABGFF) are pleased to announce that,
further to their press releases of January 23, 2014 and April 7, 2014, the
companies have entered into a definitive arrangement agreement dated as of April
10, 2014 (the "Arrangement Agreement"). 


Pursuant to the terms of the Arrangement Agreement, Kerr Mines each American
Bonanza shareholder will be entitled to receive 0.53 of a common share (each
whole share, a "Kerr Mines Share") of Kerr Mines for every one (1) common share
of American Bonanza (an "American Bonanza Share") held by such American Bonanza
shareholder (the "Exchange Ratio"), subject to adjustment, pursuant to a plan of
arrangement under the Business Corporations Act (British Columbia) (the
"Arrangement"). In addition, each holder of the outstanding stock options and
common share purchase warrants of American Bonanza (the "American Bonanza
Options") will receive such number of replacement options or warrants of Kerr
Mines equal to the product of the number of American Bonanza Shares based upon
the Exchange Ratio.


Currently, Kerr Mines 475,527,608 Kerr Mines Shares outstanding and American
Bonanza has 234,396,111 American Bonanza Shares outstanding. In addition,
pursuant to the Arrangement, American Bonanza will issue up to an additional
928,000,000 American Bonanza Shares prior to closing of the Transaction to
settle certain outstanding indebtedness. The board of directors of each of the
companies have approved the Arrangement.


The Arrangement must be approved by two-thirds of the votes cast by shareholders
present and voting at the special meeting of American Bonanza shareholders
called to consider the Arrangement. The board of directors of Bear Lake has
unanimously resolved to recommend that its shareholders vote their securities in
favour of the Arrangement. 


The Arrangement is subject to the approval of the Supreme Court of British
Columbia and all applicable regulatory authorities, including the Toronto Stock
Exchange ("TSX"). Completion of the Arrangement is further subject to Kerr Mines
shareholder approval and additional conditions set out in the Arrangement
Agreement. Kerr Mines and American Bonanza expect to close the transaction on or
about June 20, 2014.


As approved by the shareholders of Kerr Mines at the annual and special meeting
of the shareholders of Kerr Mines held on December 19, 2013, the Kerr Mines
shares will, following completion of the Arrangement and the American Bonanza
Transaction, be consolidated on a 1 for 15 basis.


A copy of the Arrangement Agreement will be filed on SEDAR and will be available
for viewing under the profiles of Kerr Mines and American Bonanza at
www.sedar.com.


Neither the TSX nor its Regulation Services Provider accepts responsibility for
the adequacy or accuracy of this release and has in no way passed upon the
merits of the Arrangement and has neither approved nor disapproved of the
contents of this press release. 


Completion of the Arrangement is subject to a number of conditions including but
not limited to TSX acceptance, as applicable, and receipt of approval by
American Bonanza and Kerr Mines shareholders to the Arrangement. Where
applicable, the Arrangement cannot close until the required shareholder approval
is obtained. There can be no assurance that the Arrangement will be completed as
proposed or at all. 


Investors are cautioned that, except as disclosed in the management information
circular or filing statement to be prepared in connection with the Arrangement,
any information released or received with respect to the Arrangement may not be
accurate or complete and should not be relied upon. Trading in the securities of
American Bonanza or Kerr Mines should be considered highly speculative.


Cautionary Statements Regarding Forward Looking Information 

This press release contains "forward-looking information" within the meaning of
Canadian securities legislation. All information contained herein that is not
clearly historical in nature may constitute forward-looking information.
Generally, such forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of such
words and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking information is subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of activity,
performance or achievements of Kerr Mines or American Bonanza to be materially
different from those expressed or implied by such forward-looking information,
including but not limited to: (i) the possibility that the Transaction would not
be completed; (ii) volatile stock price; (iii) the general global markets and
economic conditions; (iv) the possibility of write-downs and impairments; (v)
the risk associated with exploration, development and operations of mineral
deposits; (vi) the risk associated with establishing title to mineral properties
and assets; (vii) the risks associated with entering into joint ventures; (viii)
fluctuations in commodity prices; (ix) the risks associated with uninsurable
risks arising during the course of exploration, development and production; (x)
competition faced by the resulting issuer in securing experienced personnel and
financing; (xi) access to adequate infrastructure to support mining, processing,
development and exploration activities; (xii) the risks associated with changes
in the mining regulatory regime governing the resulting issuer; (xiii) the risks
associated with the various environmental regulations the resulting issuer is
subject to; (xiv) risks related to regulatory and permitting delays; (xv) risks
related to potential conflicts of interest; (xvi) the reliance on key personnel;
(xvii) liquidity risks; (xviii) the risk of potential dilution through the issue
of resulting issuer common shares; (xix) the resulting issuer does not
anticipate declaring dividends in the near term; (xx) the risk of litigation;
and (xxi) risk management. 


Forward-looking information is based on assumptions management believes to be
reasonable at the time such statements are made, including but not limited to,
completion of the Transaction, continued exploration activities, no material
adverse change in metal prices, exploration and development plans proceeding in
accordance with plans and such plans achieving their stated expected outcomes,
receipt of required regulatory approvals, and such other assumptions and factors
as set out herein. Although Kerr Mines and American Bonanza have attempted to
identify important factors that could cause actual results to differ materially
from those contained in the forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such forward-looking information will prove to be
accurate, as actual results and future events could differ materially from those
anticipated in such forward-looking information. Such forward-looking
information has been provided for the purpose of assisting investors in
understanding Kerr Mines and American Bonanza's business, operations and
exploration plans and may not be appropriate for other purposes. Accordingly,
readers should not place undue reliance on forward-looking information.
Forward-looking information is made as of the date of this press release, and
Kerr Mines and American Bonanza do not undertake to update such forward-looking
information except in accordance with applicable securities laws.


FOR FURTHER INFORMATION PLEASE CONTACT: 
American Bonanza Gold Corp
Brian Kirwin
President and CEO
info@americanbonanza.com


Kerr Mines Inc.
Greg Gibson
President and CEO
ggibson@kerrmines.com