99.2


                                  EXHIBIT 99.2


       Golden Phoenix Secures Funding for its Ashdown Molybdenum Project,
                    Begins Bonding process for Mill and Mine


SPARKS,  Nev., May 12  /PRNewswire-FirstCall/  -- Golden Phoenix Minerals,  Inc.
(OTC Bulletin  Board:  GPXM - News)  announced today the receipt of financing to
construct a 100-ton  mill and make  preparations  to mine the Sylvia  molybdenum
deposit at its Ashdown joint venture project located in Humboldt County, Nevada.

The Company has  arranged a debt  finance  program  utilizing  two  unaffiliated
lenders  to fund  development  of the mill and mine  separately.  Funds  will be
released to Golden Phoenix in accordance  with individual  timetables  linked to
milestone schedules for assembling the mill and reopening the Sylvia decline. In
keeping with the intention of new management to limit share dilution,  the loans
will be repaid  primarily in cash, with only minor  consideration  granted using
restricted shares and warrants.

Golden Phoenix has received its first installment of funds and initiated bonding
for both the mill and  mine in  preparation  for the  construction  phase of the
project.  With receipt of these funds,  Golden Phoenix  affirms its intention to
capture the historically  high molybdenum price by bringing the Ashdown mill and
mine on line in the near term.

Golden  Phoenix  Minerals,  Inc. is focused on  developing  and mining  superior
high-grade  deposits of precious and strategic  metals to enhance  profitability
and return maximum value to its shareholders.

Visit the Golden Phoenix Web site at

Forward-Looking  Statements.  Certain  statements  included  herein may  contain
forward-looking  information within the meaning of Rule 175 under the Securities
Act of 1933 and Rule 3b-6 under the  Securities  Exchange  Act of 1934,  and are
subject to the safe harbor created by those rules.  All  statements,  other than
statements  of  fact,  including,   without  limitation,   statements  regarding
potential  future  plans and  objectives  of the  company,  are  forward-looking
statements that involve risks and uncertainties.  There can be no assurance that
such  statements  will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements. The Company's
actual  results  could  differ   materially  from  those   anticipated  in  such
forward-looking  statements as a result of a number of factors.  These risks and
uncertainties, and certain other related factors, are discussed in the Company's
Form  10-KSB,  Form 10-QSB and other  filings with the  Securities  and Exchange
Commission.  These  forward-looking  statements are made as of this date and the
Company  assumes no  obligation to update such  forward-looking  statements as a
result of a number of factors.

     CONTACT:
     Golden Phoenix Minerals, Inc.
     775/853-4919

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

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