- ASHDOWN MOLYBDENUM PRODUCTION CONTINUES UNABATED -

SPARKS, Nev., Oct. 17 /PRNewswire-FirstCall/ -- Golden Phoenix Minerals, Inc. (OTC Bulletin Board: GPXM) announced today that the Company has initiated a comprehensive cost-cutting program designed to conserve operating cash reserves in the face of the current financial upheavals impacting the international business community.

Conservation measures include trimming the corporate staff, rescheduling non-essential projects, and voluntary deferral of salaries, including 100 percent deferral of salaries for corporate officers until further notice.

'None of the measures are designed to have any impact on the Ashdown molybdenum mine, which remains in full operation,' said David A. Caldwell, CEO.

'As our nation witnesses the extraordinary steps being taken by the government and major corporations to stabilize the global credit environment, I have asked our key executives to make timely and prudent adjustments to business-as-usual at Golden Phoenix. The response has been overwhelmingly positive,' Mr. Caldwell said.

As part of these initiatives, Mr. Caldwell and Robert P. Martin, President, have voluntarily accepted Company stock in exchange for a significant portion of their accrued salaries and agreed to its private sale so as not to impact daily trading. Both officers pledged their continued support for Golden Phoenix.

Mr. Caldwell continued, 'In light of these worldwide challenges, Golden Phoenix is very fortunate to have the Ashdown mine in current molybdenum production, and we remain committed to safely guiding the Company toward better financial times ahead.'

Golden Phoenix Minerals, Inc. is a Nevada-based mining company committed to deliver value to its shareholders by acquiring, developing and mining superior precious and strategic metal deposits in North America using competitive business practices balanced by principles of ethical stewardship. Golden Phoenix owns the Mineral Ridge gold and silver property near Silver Peak, Nevada, the Northern Champion molybdenum mine in Ontario, Canada, and is majority owner of the Ashdown Project LLC gold and molybdenum property held jointly by Golden Phoenix Minerals, Inc. and Win-Eldrich Mines, Ltd. of Toronto, Canada through its US subsidiary, Win-Eldrich Gold, Inc.

'Safe Harbor' Statement under the Private Securities Litigation Reform Act of 1995: The statements by David A. Caldwell, CEO, and other statements regarding the expansion of production at the Ashdown Mine, optimism related to the business, expanding exploration and development activities and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business. Words such as expects, anticipates, intends, plans, believes, sees, estimates and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Actual results could vary materially from the description contained herein due to many factors including continued market prices for the Company's mineral products. In addition, actual results could vary materially based on changes or slower growth in the molybdenum and gold markets; the potential inability to realize expected benefits and synergies in the Company's mining operations; domestic and international business and economic conditions; changes in the mining industry for base and precious minerals, especially molybdenum; unexpected difficulties in expanding production at the Company's mines; changes in customer demand or ordering patterns for molybdenum; changes in the competitive environment including pricing pressures or technological changes; technological advances; shortages of skilled miners; the need for additional capital and other risk factors listed from time to time in the Company's Securities and Exchange Commission (SEC) filings under 'risk factors' and elsewhere. The forward-looking statements contained in this press release speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.

     CONTACT:

     Robert P. Martin, President 775/853/4919
     investor@golden-phoenix.com

     Equiti Trend Advisors 800/585/6988

     E&E Communications 949/707-5365
     pknopick@eandecommunications.com

SOURCE Golden Phoenix Minerals, Inc.

Source: PR Newswire (October 17, 2008 - 7:00 AM EDT)

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