Mr. Frank Basa reports

GOLD BULLION ANNOUNCES PRELIMINARY METALLURGICAL TESTING SHOWING AVERAGE GOLD RECOVERY OF 94.1 % WITH AN AVERAGE GOLD GRADE OF 0.94 G/T AT THE GRANADA GOLD PROPERTY

Gold Bullion Development Corp. has released 29 composite sample results from the SGS Lakefield Gold Metallurgical Testing Group. These results are to be used in the total gold determination program that SGS Geostat is working on for the Granada gold property located on the prolific Cadillac trend, south of Rouyn-Noranda, Que., Canada.

The purpose of the test was to determine the head grades and recoveries of the various composites in order to compare them with the individual assay results. Claude Duplessis, Eng, the SGS Geostat qualified person, selected 29 different composite samples from 29 different mineralized zones at various depths with variable grades. The testwork consisted of a total gold metallurgical balance that resulted in overall gold recovery data.

Overall recovery rates averaged 94.1 per cent, ranging from 87.1 per cent to 98.5 per cent. These numbers demonstrate that even at low grades, superior recovery of gold can be achieved within the mineralized zones by using gravity followed by cyanidation on the Granada property. The recovery rates using only gravity ranged from 25.1 per cent to 78.0 per cent with an average rate of 50.6 per cent, indicating a significant amount of free gold is present.

Test details summary

The composites were prepared by blending from seven to 11 individual witness core samples to represent a continuous mineralized zone from 9.1 metres to 16.5 metres long. The total composite weight ranged from 17 kilograms to 41 kg.

The composites were then crushed to minus 10 mesh. The crushed sample was riffled into 10-kilogram test charges with each composite treated in its entirety.

Each composite sample was ground in 10-kilogram batches in a laboratory rod mill to approximately 80 per cent passing 75 micrometres (one-millionth of a metre). The grind sizes for processing ranged from 52 micrometres to 102 micrometres, averaging 77 micrometres.

The mill discharge was passed through a Knelson concentrator, and the concentrate was then cleaned on a Mozley mineral separator. All of the resulting concentrate from the Mozley separator was then fire assayed for gold.

The Mozley and Knelson tailings were then combined and submitted for cyanide leaching.

The pregnant leach solution was collected and submitted for gold assay. The leached pulp was also sampled for gold content by fire assay. An overall (gravity and cyanidation) gold metallurgical balance was then performed to calculate the head grade of each composite.

Tests were conducted under the supervision of Lesley Hendry, project metallurgist at the Lakefield facilities of SGS Canada.

The comparison between the length-weighted-average gold grade from the original uncapped assay results versus SGS total gold on an individual basis shows some variance as expected. This variance is directly related to the nature of the gold mineralization at Granada. The weighted average of the original composite data is 1.16 grams per tonne, while the average of the total gold test is 0.94 g/t. When the capping of an individual fire assay result of 36.94 g/t in composite No. 14 to 10 g/t is applied, the original average grade is 1.05 g/t.

For complete details of the total gold metallurgical tests including accompanying tables, please go to the company's website. Claude Duplessis, Eng, is acting as the qualified person for Gold Bullion Development in compliance with National Instrument 43-101, and has reviewed the technical contents of and data included in this press release.

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