Mr. Frank Basa reports

GOLD BULLION RECEIVES POSITIVE PRELIMINARY ECONOMIC ASSESSMENT FOR GRANADA, PROCEEDING TO PRELIMINARY FEASIBILITY STUDY

Gold Bullion Development Corp. has released the first economic estimates for its Granada gold property located on the prolific Cadillac trend in northwestern Quebec, five kilometres south of the city of Rouyn-Noranda. The proposed combination of an open-pit and underground operation has the potential to move Gold Bullion into gold production at the approximate rate of 102,000 ounces of gold per year.

The preliminary economic assessment (PEA) was prepared by SGS Canada Inc. -- SGS Geostat business unit. The PEA is based on the measured, indicated and inferred gold resource estimation provided by SGS Geostat that was press released on Nov. 15, 2012, in accordance with National Instrument 43-101 -- standards of disclosure for mineral projects -- as defined by National Instrument 43-101 regulations. PEA highlights are summarized in the associated table.

                                  ASSUMPTIONS  
                                                                         
Gold price (U.S. dollars per ounce) -- three-year trailing average              $1,470
Canadian dollar to U.S. dollar rate                                            1.0:1.0
                                               
                                       
                                MINERAL RESOURCES 
                                (recovered ounces)                                                  
Underground resources                                                          387,000
Open-pit resources                                                             739,000
        
                                                                              
                                 MINE PARAMETERS 
                                                                      
Mill feed coming from underground mine (tonnes per day)                          1,000
Mill feed coming from open-pit mine (tonnes per day)                             6,500
Combined mill feed (tonnes per day)                                              7,500
Mine plan tonnage (tonnes)                                                26.4 million
Underground mine plan mill feed grade (grams/tonne)                               3.51
Open-pit mine plan mill feed grade (grams/tonne)                                  1.07
Open-pit waste-to-ore ratio                                                       5.91
Estimated gold recovery (%)                                                      94.10
Total gold recovered (ounces)                                                1,126,000
Preproduction period (years)                                                      2.00
Mine life (years)                                                                11.00
Average annual gold production (ounces)                                        102,000
 
                                                                                     
                                         COSTS 
Preproduction capital                                                     $259-million
Average underground cash cost per ounce (U.S. dollars per ounce)                 1,205
Average open-pit cash cost per ounce (U.S. dollars per ounce)                      985
         
                                                                             
                                   FINANCIAL RETURN 
                                                                     
Payback from start of production (years)                                          6.80
Internal rate of return (before tax)                                             10.4%
Net present value, pretax, 5.5-per-cent discount ($ discount)            $74.3-million


                                       RESOURCES

                Resource category             Tonnes            Grade (g/t)

Underground              Measured             18,000                   2.79
                        Indicated          1,018,000                   3.74
                         Inferred          2,635,000                   3.42
Open pit                 Measured         20,485,000                   1.05
                        Indicated          2,178,000                   1.27
                         Inferred            112,000                   0.78

Note:

The chart is presenting the resource as diluted material, mineral resources that are not mineral reserves and do not have demonstrated economic viability.

At the prevailing gold price on Dec. 19, 2012, of $1,650 (U.S.) per ounce and a Canadian to U.S. dollar exchange rate of 1.00, Gold Bullion has determined that the pretax NPV increases to $217.8-million at a 5.50-per-cent discount rate while pretax IRR increases to 18.8 per cent with payback time reduced to 4.8 years (using the same mine plan).

The study was prepared as a stand-alone project, relating solely to the mineral resources deposit at Granada, and accordingly does not take into account the previously outlined potential at depth disclosed on Nov. 26, 2012, since it is not mineral resources. Additional work is therefore required to convert the portion of potential into mineral resources.

The scoping study mentioned herein is a preliminary evaluation inclusive of inferred mineral resources that are too geologically speculative to infer economical considerations that would classify them into mineral reserves. It is therefore uncertain that this preliminary evaluation results in the expected outcome.

The complete technical report will be filed on the company's website and on SEDAR in the next 45 days. "We are very pleased to release the preliminary economic assessment study on the Granada gold deposit," stated Frank J. Basa, PEng, president and chief executive officer. "Due to the dedication and diligence of Gold Bullion's technical team and consultants, we have been able to deliver this study within just four years of developing the property and are proud to see Gold Bullion progress as a potential emerging producer of gold in the near term, creating shareholder value through successful exploration and development while continuing to seek out other worthwhile opportunities for growth."

The delivery of the scoping (PEA) study completes the first stage of Gold Bullion's continuous development program at Granada, aimed at advancing the Granada project to commercial production, by demonstrating an economic, environmental and social gain, while simultaneously mitigating the technical, financial and environmental risks of the project.

As mineral resources could be affected by permitting and social acceptance issues, Gold Bullion plans to hold meetings with various stakeholder groups prior to the completion of the prefeasibility study and will either be incorporating those views and recommendations into the study or retaining as recommendations to be addressed in the possible final feasibility study.

Claude Duplessis, Eng, Gaston Gagnon, Eng, and Jonathan Gagne, Eng, are acting as the qualified persons (QP) for Gold Bullion Development in compliance with National Instrument 43-101 and have reviewed the technical contents of this press release.

We seek Safe Harbor.