Mr. Frank Basa of Gold Bullion reports

GOLD BULLION ANNOUNCES MOU WITH IAMGOLD

Gold Bullion Development Corp. has signed a memorandum of understanding with Iamgold Corp., dated April 8, 2014, with respect to Iamgold processing ore emanating from the Granada mine site at its Westwood mill. After appropriate due diligence, management has determined Iamgold is the best-positioned local mill facility to process the mineralized material from Granada. In summary, its proximity provides the most cost-effective and economic option for the company due to the short hauling distance from the Granada mine site.

The subject-mineralized material is to be mined from the near-surface drill indicated gold resource identified in the Extend Long Bars zone. At this stage of property development, the company is targeting a total of 500,000 to 600,000 tonnes of mineralized material for processing over a three-year period. The transaction terms outlined in the memorandum of understanding are non-binding on the parties and the memorandum of understanding is expected to be superseded by a definitive milling agreement to be signed between the parties no later than June 30, 2014.

Memorandum of understanding

Under the proposed terms of the memorandum of understanding, Iamgold anticipates milling between 500,000 to 600,000 tonnes of gold mineralized material for Gold Bullion, or 150,000 to 200,000 tonnes on an annualized basis. Management has set out the initial terms of the milling agreement at three years with the subject-mineralized material to be milled in batches. It is expected typical batch size will range from 35,000 to 50,000 tonnes, with each batch of material to be processed consecutively as one complete batch.

Processing will take place on a schedule of one batch every three months. Once each batch of ore has been processed, settlement to Gold Bullion is to be made in the form of recovered precious metals that will be deposited to Gold Bullion metal accounts at the refiners' offices.

The milling agreement will have an evergreen clause that will renew the agreement automatically for an additional three years upon completion of this first agreement unless either party notifies the other in writing otherwise. This written notice must be with 120 days of advance notice prior to the end of this initial term. The milling agreement can also be terminated earlier for convenience or based on other changes in circumstances, again by either party. Detailed specifics of the milling agreement will be forthcoming when finalized by both parties.

We seek Safe Harbor.