Golden Cycle Gold Corporation Report to Shareholders; 1/30/2004

Letter from the President: Stock Quotes; 11/16/2004

We have been experiencing problems obtaining stock quotes recently.

For the past two and a half years our common stock has been trading primarily on the Over-The-Counter (OTC) market. This resulted in reduced visibility of bid/ask information and wide spreads between the bid and ask prices. The market has been further complicated by two trading symbols active for your Company’s stock, “GCC” and “GCGC”.

In an attempt to establish more order to the market for the Company’s stock, we have eliminated the trading symbol “GCC” which was used by the Pacific Exchange/Archipelago Exchange, and established the symbol “GCGC” as the only trading symbol for the Company's common stock. The symbol “GCGC” was previously used by the Over-The-Counter market, and was the Company’s symbol prior to its move to the Pacific Exchange in 1992.

The transition to one trading symbol has not proved to be smooth. Most recently, the retail quote providers have been providing only last sale information and not bid/ask quote information. I ask your continued patience as we work to make the system effective for you.

Thank you,
R. Herbert Hampton
President & C.E.O.

Golden Cycle Gold Corporation Report to Shareholders; 1/30/2004

Dear Shareholder,

We enter 2004 more firmly committed than ever before to our product, gold, and to the value of your Company's interest in its joint venture in Cripple Creek, Colorado and other properties in Nevada and the Philippines. Your Company's Management and Board of Directors are united in aggressively pursuing a strategy to provide more liquidity and market awareness for the outstanding common shares. The company's long held Water Rights contract with the City of Cripple Creek closed in December 2003, providing increased liquidity for your company in the form of substantial cash revenue. Management continues to believe that economic gold mining properties can be found and developed at the prevailing price of gold bullion, while continuing to focus its primary attention and resources toward its current properties and selectively reviewing properties with large scale potential. The Company's 33% owned joint venture in Cripple Creek, Colorado, with AngloGold, (The Cripple Creek & Victor Gold Mining Company, "CC&V"), did not conform to budget due to start up problems associated with the mine's major facility expansion. Production of 283,886 troy ounces of gold was substantially below budget. Significant improvement, as of recent date, in problem related areas have been achieved during the last half of the year ending 2003. New 300-ton trucks are performing closer to design capacity, while the new primary crusher is performing to budget, and leach pad 2 is again yielding gold. Further, CC&V's near surface exploration program continues to have success in the development of additional mineable mineral resources, adding approximately 839,308 contained troy ounces of gold to total resources at mid-year, 2003.

As we previously reported, CC&V experienced problems with its new fleet of Euclid trucks. Operational readiness rates were significantly below budget and contract specifications. In accordance with its contract, Euclid made two additional trucks available on-site to provide make-up hours. The non-availability of trucks reduced and CC&V's ability to move material, mine management rapidly fell behind in its plan and budget. As it fell behind, higher-grade ore, which the mine plan predicted would be accessible, was not; CC&V was then forced to mine lower grade material. CC&V now appears to have overcome its truck capacity problems, chiefly through improved maintenance. CC&V mined and moved material at a 62 million ton a year rate (58 million tons a year budget) during five of the past six months of 2003.

Throughput on the new primary crusher was reduced by start-up problems, particularly attributed to an ore “bridging” problem. Bridging occurs when rocks lodge against one another and press against the physical structure near entry, forming a bridge or dome, blocking direct feed to the inner workings of the unit itself.

CC&V has made changes which have resulted in the crushing facility processing at budgeted rates, 20 million tons per year, or above, in each of the past six months.

The last of CC&V's major problems encountered in 2003 was the frustrating lock-up of gold in leach pad #2. CC&V studied the problem extensively and concluded the leach pad chemistry was the primary problem. CC&V has undertaken remedial actions to correct leach pad chemistry and closely monitor acidity levels (ph). These actions resulted in slow, steady improvement in Ph in particular; increasing the Ph to 10.2 during December 2003 (optimal Ph is about 10.5). Gold is once again flowing on a daily basis from leach pad 2 at a rate of 200 to 350 ounces, from an inventory of approximately 80,000 troy ounces, estimated at the close of 2003 by mine management.

Higher gold prices during 2003 have produced the best overall change in the mine's economics to date. We continue to believe you, our Shareholders, have one of the very best "calls" on gold that exists in the marketplace through the Company's 33% interest in CC&V, its mineral reserves, resources and the potential represented by its exploration program. As prices for gold bullion passed through $400 per ounce your "call" began to represent, not only a call on the price of gold, but foreseeable future cash flows from the joint venture. Granted the cash flow predicted by extrapolation of joint venture economics forward may yet be a long way off, depending on gold prices, but your leverage through our participation in the joint venture is unusually high due to the large amount of capital expenditure to date. Potential cash flow and a positive revenue stream become more pronounced with each dollar increase in the price of gold against the outstanding debt load of the project. The real possibility of even higher prices for gold brought about by government deficit spending at home and abroad brings the future closer to reality.

CC&V gold mineral resources, net of depletion, increased as of June 30, 2003 by approximately 839,308 contained troy ounces of gold, bringing CC&V's total mineral resources to 8,942,121. Total gold mineral resources, as used herein, refer to a combination of proven and probable ore reserves and measured, indicated, and inferred categories of mineral resources. The Wild Horse Extension Project ("WHEX") exploration drilling results represented the majority of the increase, contributing approximately 704,329 contained troy ounces of gold to the Upper Cresson total mineral resource. The remainder of the increase was primarily a result of East Cresson (Altman) development drilling. As part of its long-range business plan, CC&V has been conducting exploration in the Cripple Creek/Victor gold mining district for surface and underground mineable gold deposits for the past several years. Currently, CC&V is conducting exploratory drilling on both underground and near surface targets, one of which is the WHEX. In the latter part of 2002, CC&V commenced exploration drilling on the WHEX, which borders its existing mining operations to the north. The WHEX primarily lies within CC&V’s operating permit limits, previously approved by the State of Colorado.


The above table/model does not completely reflect what appear to be zones of higher-grade mineralization of substance in the WHEX area.

In December 2003 the Company closed its Water Rights contract with the City of Cripple Creek, Colorado. The Company recorded 2003 revenue from this transaction of approximately $670,000 against a book carrying cost of approximately $132,000. The total net realized value of the contract to the Company was approximately $1 million, when the $312,500 the Company received in 1996 is included in the total.

The focus for 2004 has been clearly set: A determined effort by your management will be made to increase the value and liquidity of your holdings in the market place. We believe the Company is undervalued and will approach this problem in several ways. First, the Board of Directors voted to split the stock five for one during its January 2004 meeting, (subject to shareholder approval to increase the Company's authorized shares at the May 5, 2004 annual meeting). Second, we have a great story to tell and are engaging a professional, mining industry focused, investor relations firm to assist in shareholder communications and packaging our story to, the individual investor and subsequently the institutional investor. Thirdly, we are enhancing our relationship with the over-the-counter ("OTC") market and market makers in a concerted effort to bring depth to the market for our securities.

Finally, as our story emerges from the shadows, and the market place has the opportunity to understand the underlying value behind each share of your company's common stock, we believe the increased value in our capitalization will hopefully allow the company to list its shares on the American Stock Exchange ("AMEX"). The AMEX appears to be the exchange of choice for resource companies, in particular precious metals mining companies.

The market for gold bullion in 2004 will, I believe, see even higher bullion prices by year-end. In that respect, each dollar increase in the price of gold can represent real value to you from future cash flow, from the joint venture, and increased value in the Company's mineral properties in Nevada and the Philippines. This is the story we will carry to the investing public, financial markets and institutional investors.

On behalf of your Board of Directors,
R. Herbert Hampton,
President & C.E.O

Golden Cycle Gold Corporation's common stock is listed on the Pacific Exchange (PCX), and is traded on the Archipelago Exchange, the equities trading platform of the PCX, under the symbol "GCC". The stock also trades in the over the counter market under the symbol "GCGC" (1,908,450 shares outstanding). Be advised that the proposed five for one split of the Company's shares may impact margin lending at some brokerage institutions. Please check with your carrying broker as to their requirements.

This letter includes forward-looking statements involving risk and uncertainties that could cause actual results to vary materially from projected results. These include but are not limited to changing commodity prices; differences in ore grades and tons mined from those anticipated; successful mining and milling at currently planned rates; changes in project parameters as plans continue to be refined; continued compliance with environmental permits; the results of current exploration activities and new exploration opportunities; the conclusion of feasibility studies currently under way; and the political and economic risks associated with foreign operations. Please refer to a discussion of these and other factors in the company's 10-K, 10-Q and other Securities and Exchange Commission filings, which will be provided to you upon request.