Mr. Frank Basa reports

GOLD BULLION INTERSECTS 3.62 G/T AU OVER 15 METRES INCLUDING 43.58 G/T AU OVER 1 METRE AND EXTENDS THE DRILL PROGRAM AT GRANADA

Gold Bullion Development Corp. has released preliminary drilling results from the 2,500-metre exploration program initiated in September, 2016, at the Granada gold property. The company now intends to proceed with an additional 8,000 metres of drilling in the coming months in prospective areas on the property.

Highlights:

• GR-16-03 intersected 3.62 grams per tonne gold over 15 metres including 43.58 g/t Au over one m.
• GR-16-11 intersected 5.67 g/t Au over two m including 9.31 g/t Au over one m.
• GR-16-12 intersected 9.25 g/t Au over three m including 24.99 g/t Au over one m.

Frank J. Basa, president and chief executive officer, said: "We are very pleased with the preliminary results of this campaign. We intend to continue drilling as part of our program to increase the value of the Granada deposit for our shareholders. The potential 5.5-kilometre strike length we have identified on the property still remains approximately 80 per cent unexplored."

The drill results reported in this release are from three holes drilled in the area where the company unexpectedly discovered a new, high-grade mineralized zone at surface between two planned open pits. The discovery of this new zone was announced in the news release of Sept. 28, 2016.

The results support the extension at depth of the new high-grade zone. This zone is expected to add to the area to be mined during the planned rolling start initial phase of mining as outlined in the 2014 prefeasibility study (PFS) (see the end of this release for technical report information).

The gold-in-vein mineralization in the new zone is clearly associated with the feldspar porphyry. Coarse pyrite and arsenopyrite carrying gold within schistosity in the porphyry have been observed.

            SIGNIFICANT RESULTS OF THE THREE DRILL 
                HOLES REPORTED IN THIS RELEASE
 
Hole           From (m)    To (m)   Width (m)    Grade (g/t Au)

GR-16-03           54.0      69.0        15.0              3.62
including          68.0      69.0         1.0             43.58
GR-16-11           19.0      43.0        24.0              1.06
including          24.0      27.0         3.0              1.47
and including      34.0      37.0         3.0              1.99
and                41.0      43.0         2.0              5.67
including          42.0      43.0         1.0              9.31
and               104.0     105.0         1.0              4.45
and               129.0     132.0         3.0              1.10
GR-16-12           13.0      38.0        25.0              1.50
including          13.0      16.0         3.0              9.25
including          13.0      14.0         1.0             24.99
and including      21.0      25.0         4.0              0.54
and                35.0      38.0         3.0              2.02
including          35.0      36.0         1.0              3.31
and                69.0      70.0         1.0              3.97
and               119.0     120.0         1.0              3.75
and               136.0     146.0        10.0              1.47
including         136.0     140.0         4.0              2.29

Notes
(1) Assays are uncapped.
(2) GoldMinds Geoservices Inc. estimates that the 
mineralized intercepts' true thicknesses are 90 to 
95 per cent of the drill cores.  
    

The holes were drilled southward with a dip of 45 degrees in NQ core size. Other drill hole results will be disclosed once compiled, validated and interpreted. A map of the drill hole locations of the program can be viewed at the company's website.

The drill results will be incorporated into the new resource model and will be used to update plans for the rolling start initial phase of mining as well as for revising the mass model to be used for feasibility work aimed at achieving the company's goal of producing 100,000 ounces of gold annually at Granada.

Quality assurance/quality control

The drill results were analyzed at the Accurassay laboratory (Standards Council of Canada-accredited laboratory) in Rouyn-Noranda, Que. A rigorous, industry-standard, QA/QC program is in place. Each of the samples are weighed at reception at the laboratory as a first control. The independent quality control program of the assay results adopted by geological consultants GoldMinds Geoservices Inc. includes a minimum of 10 per cent of controlled assays with introduction of blanks and standards.

The samples are crushed 70 per cent passing 10 mesh (two millimetres), a split of 500 grams is pulverized to 85 per cent passing minus 200 mesh (0.074 mm), and an aliquot of 30 grams is assayed by fire assay. Actual QA/QC results demonstrate the results can be disclosed and relied upon.

Qualified person

Claude Duplessis, PEng, of Goldminds Geoservices Inc., a geological, environmental and mining consultant, is an independent qualified person in accordance with National Instrument 43-101, and has prepared, reviewed and approved the contents of this news release.

Technical reports and qualified persons

In 2014, the company published a plan to initially mine and process high-grade, open-pit ore to produce approximately 25,000 ounces per year over three years. This rolling start initial phase of reduced-scale mining with ore to be shipped for processing at local mills was outlined in National Instrument 43-101 technical report prefeasibility study (PFS) phase I -- open-pit Granada gold project, Rouyn-Noranda, Que., published June 19, 2014, effective date May 6, 2014. Claude Duplessis, Eng, Gilbert Rousseau, Eng, Jonathan Gagne, Eng, and Dr. Martin Stapinsky, PGeo, MSc, PhD, are the qualified persons in accordance with National Instrument 43-101.

About Gold Bullion Development

Gold Bullion Development is developing the Granada gold property near Rouyn-Noranda, Que. The property includes the former Granada gold mine which produced more than 51,476 ounces of gold in the 1930s with an average grade of 0.28 ounce per ton (9.6 grams per tonne) before a fire destroyed the surface buildings.

We seek Safe Harbor.