Mr. Frank Basa reports

GOLD BULLION APPLIES TO AMEND WARRANTS

Gold Bullion Development Corp. will make an application to the TSX Venture Exchange to reduce the exercise price of an aggregate of 16,975,653 share purchase warrants to 15.5 cents per share. All other terms and conditions remain constant.

Of these warrants, 15,273,153 form part of a private placement financing, the first tranche of which closed on Dec. 22, 2011, consisting of two parts: (i) 19,109,957 flow-through units issued at a purchase price of 18 cents per unit, each flow-through unit consisting of one common share and one-half of a share purchase warrant. Each whole warrant entitles the holder to purchase one additional non-flow-through common share at a purchase price of 22 cents per share on or before Dec. 21, 2012; and (ii) 5,718,175 non-flow-through units issued at a purchase price of 16 cents per unit, each non-flow-through unit consisting of one common share and one share purchase warrant. Each warrant entitles the holder to purchase one additional non-flow-through common share at a purchase price of 20 cents per share on or before Dec. 21, 2012.

The remaining 1,702,500 share purchase warrants were issued pursuant to the second tranche of the private placement financing, which closed on Dec. 29, 2011, consisting of 3,405,000 flow-through units issued at a purchase price of 18 cents per unit, with each unit consisting of one common share and one-half of a share purchase warrant, each whole warrant entitling the holder to purchase one additional non-flow-through common share at a purchase price of 22 cents per share on or before Dec. 29, 2012.

The amendment is subject to approval by the warrantholders and the TSX Venture Exchange.

We seek Safe Harbor.