Mr. Frank Basa of Gold Bullion reports

GOLD BULLION DEVELOPMENT ENTERS ASSIGNMENT AGREEMENT TO SELL BEAVER AND VIOLET PROPERTIES TO TAKARA RESOURCES INC.

Gold Bullion Development Corp. has entered into an assignment agreement dated Oct. 8, 2015, with Takara Resources Inc. granting Takara the right to acquire a 100-per-cent interest in the Beaver and Violet cobalt and silver properties located in the township of Coleman, in Northeastern Ontario. Pursuant to the assignment agreement, Takara agrees to pay to Gold Bullion an aggregate of $75,000, consisting of $15,000 payable within 10 days upon execution of the assignment agreement plus four equal instalments of $15,000 on the first, second, third and fourth anniversary dates of the date of the assignment agreement.

Principal transaction terms

Pursuant to the terms of the assignment agreement, Gold Bullion agrees to assign and transfer to Takara, and Takara has agreed to accept, all of Gold Bullion's rights, obligations and liabilities under the option agreement dated May 10, 2011, as amended Jan. 31, 2012.

Gold Bullion holds a seven-year option with Jubilee Gold Exploration Ltd. to acquire a 100-per-cent interest to the Beaver and Violet properties located in the Coleman township, in Northeastern Ontario. The properties are subject to a 3-per-cent net smelter return royalty, which Gold Bullion has the right to purchase each 1 per cent for $1.5-million. On Jan. 31, 2012, Gold Bullion entered into a consent to assignment and amendment of the option agreement with Jubilee pursuant to which Jubilee consented to the assignment by Grupo Moje Ltd., which is owned by an officer and director of Gold Bullion, to Gold Bullion of all of the rights, obligations and liabilities of Grupo under the option agreement, to the complete exoneration of Grupo.

To acquire ownership of both properties, Gold Bullion paid $10,000 to Jubilee and had to incur an aggregate of $100,000 in exploration expenditures. The exploration expenditure requirement has been met.

Gold Bullion is also required to make annual payments to Jubilee for a period of five years, or until the properties are in commercial production, whichever is earlier, in an aggregate amount of $60,000 for prepayment of the 3-per-cent NSR royalty held by Jubilee, as follows: $10,000 in each year on or before July 1, 2012, 2013, and 2014, increasing to $15,000 on each of July 1, 2015, and July 1, 2016. Gold Bullion has retained the right to purchase the 3-per-cent NSR royalty by paying $1.5-million to Jubilee for each percentage point of the NSR royalty.

Frank J. Basa, a director, president and chief executive officer of Gold Bullion, Jacques F. Monette, a director of Gold Bullion, and Thomas P. Devlin, chief financial officer of Gold Bullion, also serve as directors and/or officers of Takara. Mr. Basa and Mr. Monette are on the board of directors of Takara while Mr. Basa serves as president and chief executive officer and Mr. Devlin as chief financial officer. As such, the assignment of the properties under the terms of the assignment agreement is a related party transaction for the purposes of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company is relying on an exemption from the minority approval and formal valuation requirements of MI 61-101 due to the fact that the value of the transaction does not represent greater than 25 per cent of the company's market capitalization. The independent directors of the company have approved the assignment agreement and Mr. Basa and Mr. Monette have abstained from voting on the approval of the assignment agreement. Other than Mr. Basa and Mr. Monette, no director of the company abstained from voting on the assignment agreement.

No finder's fees are payable on the transaction. Closing of the transaction is subject to approval of the TSX Venture Exchange.

Qualified person

Technical information in this news release has been reviewed and approved by Claude Duplessis, Eng (Professional Engineers Ontario), a consulting engineer with GoldMinds Geoservices Inc., from Quebec City, Que., Canada, an independent qualified person as defined in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

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