Mr. Frank Basa reports

GOLD BULLION ANNOUNCES $3.0 MILLION PRIVATE PLACEMENT

Gold Bullion Development Corp. has entered into an engagement letter with Casimir Capital Ltd., as lead agent, for a best-effort private placement of flow-through units in a maximum amount of $3-million.

Gold Bullion will issue a maximum of 20 million flow-through units at a price of 15 cents per unit, for maximum gross proceeds to Gold Bullion of $3-million. Each unit will be composed of one common share and one-half of a common share purchase warrant. Each full warrant will entitle its holder to acquire one additional common share of Gold Bullion at a price of 18 cents for 12 months.

Gold Bullion will use the proceeds from the issuance of the flow-through units for exploration on its properties in Quebec.

Purchasers of the flow-through units will be entitled to claim a 100-per-cent deduction of the amount of their subscription for Canadian federal and Quebec provincial tax purposes for the 2012 taxation year, and individual purchasers will be entitled to claim an additional 15-per-cent federal investment tax credit in respect of such expenditures. Individual purchasers of flow-through units resident in Quebec will be entitled to two additional deductions of 25 per cent each. The private placement will be effected pursuant to prospectus exemptions under applicable Canadian securities legislation and is expected to close during the week of Dec. 3, 2012. The private placement is subject to customary closing conditions, including the signing of an agency agreement with Casimir Capital, and to regulatory approval, including that of the TSX Venture Exchange. The securities issued by Gold Bullion in the private placement will be subject to a four-month hold period under applicable Canadian securities legislation.

We seek Safe Harbor.