Mr. Frank Basa reports

GOLD BULLION PROVIDES MINERAL RESOURCE ESTIMATE UPDATE FOR GRANADA

Gold Bullion Development Corp. has provided an updated independent NI 43-101-compliant gold mineral resource estimate on its Granada gold property, located along the prolific Cadillac trend in northwestern Quebec, five kilometres south of the city of Rouyn-Noranda. The total gold resource at Granada now stands at 2,638,000 gold ounces using a cut-off grade of 0.40 gram per tonne with 1,605,000 ounces in the measured and indicated categories.

Highlights include the following:

The in situ measured resource is 946,000 ounces (28.735 million tonnes grading 1.02 g/t), indicated resource is 659,000 ounces (18.740 million tonnes grading 1.09 g/t), inferred resource is 1,033,000 ounces gold (29,975,000 tonnes grading 1.07 g/t Au) using a cut-off grade of 0.40 g/t.

The selected base case in-pit measured resource is 811,300 ounces (24,992,000 tonnes grading 1.01 g/t), indicated resource is 354,600 ounces (9,336,000 tonnes grading 1.18 g/t), inferred resource is 11,100 ounces gold (449,000 tonnes grading 0.77 g/t Au) using an effective cut-off grade of 0.36 g/t based on a Whittle-optimized pit shell simulation using estimated operating costs, a three-year trailing average gold price of $1,450 per ounce and a corresponding lower cut-off grade of 0.36 gram per tonne gold.

Previous small open pits have been taken into account and are starting surfaces of optimization while the historical production of 51,476 ounces (181,744 short tons at 0.28 ounce per short ton) from 1930 to 1935 are included in the resource statement (cannot physically remove from measured, indicated or inferred).

The mineralized system is still open at depth and laterally.

SGS Canada Inc. (SGS Geostat office of Blainville, Que.) is the independent resource estimate consultant for the Granada project. SGS has authorized the release of the following estimates included in the table, "Granada gold deposit in situ resource estimates," that summarize its block model estimates using variable cut-off grades.

GRANADA GOLD DEPOSIT IN SITU RESOURCE ESTIMATES

Cut-off 0.4 g/t        Tonnage    Au g/t      Au Oz   

Measured            28,735,000      1.02    946,000  
Indicated           18,740,000      1.09    659,000  
Total measured
and indicated       47,475,000      1.05  1,605,000 
Inferred            29,975,000      1.07  1,033,000 
                                               
Cut-off 1.0 g/t        Tonnage    Au g/t      Au Oz   

Measured             7,810,000      2.14    536,000  
Indicated            5,347,000      2.32    398,000  
Total measured
and indicated       13,157,000      2.21    934,000  
Inferred             8,600,000      2.23    617,000  
                                               
Cut-off 2.0 g/t        Tonnage    Au g/t      Au Oz   

Measured             2,533,000      3.76    306,000  
Indicated            1,869,000      4.07    245,000  
Total measured 
and indicated        4,402,000      3.89    551,000  
Inferred             3,030,000      3.89    379,000  

SGS also estimated an in-pit resource within a Whittle-optimized pit shell using a base case gold price of $1,450 per ounce. The table, "In-pit resource," summarizes the in-pit resources with the selected base case in Whittle optimizations.

                                   IN-PIT RESOURCE

                In-pit estimates*    CoG          Ore  Grade          Au
                                    (g/t)         (Mt)  (g/t)        (oz)
        
November,               Measured    0.36   24,992,000   1.01     811,300
2012 (within           Indicated    0.36    9,336,000   1.18     354,600
claims and Au           Inferred    0.36      449,800   0.17      11,100
= $1450/oz)
                    Measured and
                       indicated    0.36   34,328,900   1.06   1,166,000
*Rounded numbers

The in-pit estimate is based on a mining cost of $2.00 per tonne and a processing cost of $16.00 per tonne (including general and administrative), assuming gravity cyanidation treatment of the mineralized material.

Other assumptions include 94.1-per-cent recovery of gold in and pit wall slope angle of 45 degrees in the south footwall and 50 degrees in the north hangingwall.

Details on the parameters of the resource estimates

The database used for Granada includes drilling obtained from the 2009-2010-2011 and 2012 from Gold Bullion drill programs.

Most NQ assays reported by Gold Bullion were obtained by standard 50-gram fire assaying-AA finish or gravimetric finish and another fraction by screen metallics at various laboratories, ALS Chemex laboratories in Val d'Or, Que., Accurassay, Lab Expert and Swastika.

The estimates were done using inverse distance square (ID2) as the interpolation method based on 1.5-metre analytical composites.

Composites calculations are based on original samples value and were afterward capped at 30 g/t.

All estimates are based on a parent cell dimension of 10 metres East, five metres North and five metres height with search ellipsoid and estimation parameters determined for the mineralized zone geometry.

Geological interpretation for the deposit identified one main structurally controlled mineralized domain including higher grades within the envelope hosted by conglomerates of the Timiskaming group. The estimation of the mineralized domain was done in three runs where the first required a minimum of four holes using a maximum of three composites per hole within a search ellipsoid of 50 m by 50 m by five m dipping 47 degrees north, while the second run used a minimum of three holes within a search ellipsoid of 100 m by 100 m by 10 m dipping 47 degrees north, and the last run one hole within the domain minimum three composites in a 200 m by 200 m by 15 m dipping 47 degrees north.

For the classification four holes with three composites within a 40 m by 40 m by five m ellipsoid for measured, three holes with three composites within an 80 m by 80 m by 10 m ellipsoid for indicated, the rest being inferred.

Underground voids (shaft and drifts) were modelled from historical mine plans and adjusted according to positions of drill intersections in stopes and drifts. The stopes could not be placed in space with accuracy. Historical production from underground needs to be subtracted from the resource estimate.

Tonnage estimates are based on rock densities of 2.70 tonnes per cubic metre.

The global resource estimates using the lower cut-off of 0.4 g/t Au is emphasized for reporting purposes as this is close to the in-pit cut-off estimated for the $1,450 Whittle shell, which represents the reasonable potential of economic extraction in SGS qualified person's opinion.

Additional details will be provided in the technical report to be issued within the next 45 days.

Claude Duplessis, Ing, of SGS, is the qualified person who has reviewed this news release and is responsible for the technical information reported herein, including verification of the data disclosed.

We seek Safe Harbor.