Mr. Frank Basa reports

GOLD BULLION RAISES $2.4 MILLION AT FIRST CLOSING OF PRIVATE PLACEMENT

Gold Bullion Development Corp. has raised gross proceeds of $2,434,560 at a first closing of its previously announced private placement by issuing 16,231,066 flow-through units at a price of 15 cents per unit. Gold Bullion issued the securities to accredited investors in British Columbia and Ontario. Each of the 16,231,066 flow-through units is composed of one common share and one-half of a common share purchase warrant. Each full warrant entitles its holder to acquire one additional common share of Gold Bullion at a price of 18 cents for 12 months from the date of issuance.

Gold Bullion will use the proceeds from the issuance of the flow-through units for exploration on its properties in Quebec. Marquest Capital Markets and Casimir Capital Ltd. are acting as co-lead agents for the private placement. At the first closing, Gold Bullion paid a cash commission to the co-lead agents in an amount equal to 8 per cent of the gross proceeds raised through them. In addition, Gold Bullion issued compensation options to the co-lead agents entitling them to purchase, at a price of 15 cents for 12 months, a number of additional units of Gold Bullion equal to 8 per cent of the number of units sold through them at the first closing. Units issued upon the exercise, if any, of the compensation options will be composed of one common share and one-half of a common share purchase warrant. Each whole warrant entitles its holder to acquire one additional common share of Gold Bullion at a price of 18 cents for 12 months from the date of the first closing of the private placement. The securities issued by Gold Bullion at the first closing of the private placement are subject to a four-month hold period ending on March 31, 2013, under applicable securities legislation and the policies of the TSX Venture Exchange. Following the first closing of the private placement, there are 224,516,140 common shares of Gold Bullion issued and outstanding. Additional closings of the private placement may be held until Dec. 31, 2012.