Exhibit 99.1

Gryphon Announces Increase in Size of Private Placement

January 17, 2011: Gryphon Gold Corporation (GGN:TSX / GYPH:OTC.BB) announced today that the private placement announced on January 5, 2011 has been increased in size to Cdn$1.3 million from Cdn$800,000. Other terms of the private placement are unchanged. Closing is expected to be on or around January 19, 2011.

Gryphon Gold plans to offer up to 6.5 million units (formerly 4 million units) at C$0.20 per Unit to a limited number of qualified accredited investors. Each unit will consist of one share of common stock and one half of one full purchase warrant. The two year warrants will be exercisable at a price of US$0.30.

The private placement is subject to completion of documentation and obtaining regulatory approvals. The number of Units sold may vary from the anticipated number referred to in this press release based on market conditions. The Units may be offered for sale directly by Gryphon Gold and by registered deale