Mr. Frank Basa reports

GOLD BULLION GRANTS STOCK OPTIONS

Gold Bullion Development Corp. has retained DENM Ltd. in connection with the rolling-start mill set-up. DENM is an independent consultant and will assist with project management at the Granada gold mine property located near Rouyn-Noranda, Que. The primary goal is to complete the installation to production of a 700-tonne-per-day rolling-start mill by Dec. 31, 2013, subject to project financing and budget.

The consultant's services will include modification and review of prerequisite test work for the sample material, the processing system to facilitate crushing, grinding and gravity of ore, associated flow sheets and water balances for the system, local supplier procurement, and project co-ordination. Co-ordination covers all aspects of installation, construction, commissioning and meeting associated budgets.

In connection with the foregoing, the consultant has been granted incentive stock options to purchase 600,000 common shares in the capital of the company, exercisable at 10 cents per share for a period of five years. The stock options are to be granted in accordance with the terms of the company's stock option plan and the policies of the TSX Venture Exchange. This will bring the total number of options outstanding to 19.39 million, with 3,458,697 remaining available for grant under the plan.

We seek Safe Harbor.