Mr. Frank Basa reports

GOLD BULLION PROVIDES MINERAL RESOURCE ESTIMATE FOR GRANADA

Gold Bullion Development Corp. has released an independent NI 43-101-compliant gold mineral resource estimate on its Granada gold property, located along the prolific Cadillac trend in northwestern Quebec, five kilometres south of the city of Rouyn-Noranda.

Highlights include the following: The in situ measured resource is 97,700 ounces (3.02 million tonnes grading 1.01 grams per tonne), indicated resource is 543,400 ounces (17.04 million tonnes grading 0.99 g/t), and inferred resource is 846,600 ounces gold (23.93 million tonnes grading 1.10 g/t Au) using a cut-off grade of 0.40 g/t.

The selected base-case in-pit measured resource is 95,300 ounces (2.9 million tonnes grading 1.02 g/t), indicated resource is 435,600 ounces (12.49 million tonnes grading 1.08 g/t), and inferred resource is 135,600 ounces gold (3.4 million tonnes grading 1.24 g/t Au) using a cut-off grade of 0.40 g/t based on a Whittle-optimized pit shell simulation using estimated operating costs, a gold price of $1,300 per ounce and a corresponding lower cut-off grade of 0.4 gram per tonne gold.

Remaining underground resources under the selected base-case in-pit surface above a cut-off grade of 2.0 g/t is 273,200 ounces (2.32 million tonnes grading 3.66 g/t).

Previous small open pits have been taken into account and are starting surfaces of optimization while the historical production of 51,476 ounces (181,744 short tons at 0.28 ounce per short ton) from 1930 to 1935 is included in the resource statement (cannot physically remove from measured, indicated or inferred).

The mineralized system is still open at depth and laterally.

SGS Canada Inc. (SGS Geostat office of Blainville, Que.) is the independent resource estimate consultant for the Granada project which has authorized the release of the estimates.

An attached table summarizes the SGS Geostat block model estimates using variable cut-off grades.

         GRANADA GOLD DEPOSIT
       IN SITU RESOURCE ESTIMATES

Class     Tonnage  Au g/t    Au    Cut-
             000s  grade     oz     off

Measured      100  4.56    14,400  3.0+
              300  3.24    26,300  2.0+
              900  1.88    56,300  1.0+
            1,100  1.74    61,100  0.9+
            1,300  1.59    67,500  0.8+
            1,600  1.46    73,100  0.7+
            1,900  1.30    80,700  0.6+
            2,400  1.16    88,600  0.5+
            3,000  1.01    97,700  0.4+
            4,000  0.85   108,100  0.3+
Indicated     600  4.67    97,500  3.0+
            1,400  3.41   161,000  2.0+
            4,600  1.99   306,300  1.0+
            5,400  1.84   329,700  0.9+
            6,500  1.67   361,500  0.8+
            7,700  1.52   392,400  0.7+
            9,800  1.34   436,400  0.6+
           12,500  1.17   485,200  0.5+
           16,400  0.99   543,400  0.4+
           22,700  0.81   614,500  0.3+
Inferred    1,700  4.48   255,800  3.0+
            2,900  3.60   346,700  2.0+
            6,500  2.35   513,600  1.0+
            7,600  2.16   545,700  0.9+
            9,500  1.90   600,700  0.8+
           10,900  1.74   636,800  0.7+
           13,500  1.53   692,200  0.6+
           17,800  1.30   768,800  0.5+
           23,100  1.10   846,600  0.4+
           33,200  0.87   961,300  0.3+
  
Note: rounded numbers, base-case cut-
      off grade greater than 0.4 g/t

SGS also estimated an in-pit resource within a Whittle-optimized pit shell using a base-case gold price of $1,300 per ounce. An attached table summarizes the in-pit resources with the selected base case in Whittle optimizations.

Classification     Tonnage  Au g/t    Au
                    in pit  grade     oz

Measured         2,902,000  1.02  95,300
Indicated       12,490,000  1.08 435,600
Inferred         3,403,000  1.24 135,600
Meas. plus ind. 15,392,000  1.07 530,900

The in-pit estimate is based on a mining cost of $2.00 per tonne and a processing cost of $16.00 per tonne (including general fees and administration costs), assuming gravity cyanidation treatment of the mineralized material, giving base cost of $29.30 per tonne including stripping. Other assumptions include 94.1-per-cent recovery of gold, and pit wall slope angle of 45 degrees in the south footwall and 50 degrees in the north hangingwall.

Details on the parameters of the resource estimates are as follows: The database used for Granada comprised a total of 57,803 metres of drilling obtained from the 2009-2010-2011 Gold Bullion Development drill programs, now 326 of the 404 holes drilled to date.

Most NQ assays reported by Gold Bullion were obtained by standard 50-gram fire assaying -- atomic absordption finish or gravimetric finish -- and another fraction by screen metallics at various laboratories, ALS Chemex laboratories in Val d'Or, Que., Accurassay, Lab Expert and Swastika. As additional quality assurance/quality control, SGS Geostat has carried an extensive independent sampling program with total gold testing and pulp reassays from various laboratories, in addition to half-witness-core complete reassay program in order to get confidence and enable preparation of an NI 43-101-compliant estimate of resources.

The SGS database made of Gold Bullion validated data also comprised a total of 57,689 assays.

The estimates were done using inverse distance square (ID2) as the interpolation method based on 1.5-metre analytical composites.

Composites calculations are based on original samples value and were afterward capped at 20 g/t.

All estimates are based on a parent cell dimension of five metres east, five metres north and five metres height with search ellipsoid and estimation parameters determined for the mineralized zone geometry. The block model grid extends from UTM 646,200 E to 647,650 E and 5,337,600 N to 5,338,850 N, from negative 350 m to negative 250 m above sea level, site surface elevation around 320 m.

Geological interpretation for the deposit identified one main structurally controlled mineralized domain including higher grades within the envelope hosted by conglomerates of the Timiskaming group. The estimation of the mineralized domain was done in three runs where the first required a minimum of four holes using a maximum of three composites per hole within a search ellipsoid of 50 m by 30 m by five m dipping 47 degrees N, while the second run used a minimum of three holes within a search ellipsoid of 100 m by 60 m by 10 m dipping 47 degrees N, and the last run, one hole within the domain, minimum three composites in 150 m by 100 m by 15 m dipping 47 degrees N.

For the classification, four holes with three composites were within an ellipsoid 30 m by 20 m by five m for measured, three holes with three composites were within an ellipsoid 60 m by 40 m by 10 m for indicated, and the rest being inferred.

Underground voids (shaft and drifts) were modelled from historical mine plans, and adjusted according to positions of drill intersections in stopes and drifts. The stopes could not be placed in space with accuracy. Historical production from underground needs to be subtracted from the resource estimate.

Tonnage estimates are based on rock densities of 2.70 tonnes per cubic metre.

The resource estimates using the lower cut-off grade of 0.4 g/t Au is emphasized for reporting purposes as this is the in-pit cut-off grade estimated for the $1,300 Whittle shell, which represents the reasonable potential of economic extraction in SGS qualified person's opinion.

Additional details will be provided in the technical report to be issued within the next 45 days.

Claude Duplessis, Ing, of SGS is the qualified person who has reviewed this news release and is responsible for the technical information reported herein, including verification of the data disclosed.

We seek Safe Harbor.