Mr. Frank Basa reports

GOLD BULLION ANNOUNCES MINERALIZED MATERIAL READY FOR TRANSPORT

Gold Bullion Development Corp. has provided an update on work at the Granada mine site, where 10,000 tonnes of mineralized material from the existing waste pile has been sorted to be used for commissioning the mill prior to commencing the processing of the rolling-start mined rock. This work has been continuing since July, 2015, resulting in the first batch of rock now stockpiled and awaiting sampling. This mineralized material is not part of the existing mineral reserves.

This first batch originated from the waste pile left behind when previous high-grade mining operations at Granada ceased. The historic mine gold grades from the three pits mined ranged from 5.2 grams per tonne to 1.6 grams per tonne (National Instrument 43-101 technical report prefeasibility study prepared by SGS Canada Inc. dated June 19, 2014). The initial batch is oversized material that was left unprocessed by the previous operators and will be used to facilitate the optimization of processing parameters in preparation for subsequent shipments.

In addition, another 10,000 tonnes of mineralized material not part of the existing mineral reserves has been prepared to confirm the baseline gold grade that is key in planning the most efficient way to proceed. The baseline grade is the overall grade of a deposit when all the material has been taken within an identified mineralized zone. The waste rock gold grade is seen as an accurate proxy to determine this grade.

Preliminary lab work and analysis have already shown a baseline grade between 0.5 gram per tonne and 0.7 gram per tonne gold on the Granada property. With this trial test, the company is seeking to confirm those grades, given that previous test work carried out by Gekko Systems in Australia indicated that a baseline grade of 0.5 gram per tonne could be upgraded to 4.5 grams per tonne. In the event this 10,000-tonne test sample confirms a baseline grade of 0.5 gram per tonne to 0.7 gram per tonne, then the mineral resource at Granada not included in the mineral reserves becomes open to a potential upgrading by an order of magnitude directly related to, and as based on, Gekko's calculations and technologically advanced processes.

Overall extraction efficiency could be enhanced further by taking all mineralized material (actually considered to be waste in the prefeasibility study), resulting in a lower waste-to-ore ratio with reduced mining costs, including more efficient gold recovery at grades well below one gram per tonne. The project economics would also be reviewed to determine if the current all-in cash costs could be reduced.

The potential for positive cash flow from the gold recovered from the stockpiled batches (the trial tests) is unlikely as the primary goals are to optimize mill processing for subsequent ore processing from the prefeasibility study and to confirm the base grade range. A three-year extension has been awarded to a local contractor that has obtained its respective CA for processing the waste rock for aggregate use. This program has been continuing since 2006, when the company acquired the Granada site.

The company will continue to provide a portion of the funds generated from waste rock repurposing sales to local charities and for recreational trail development on the Granada property. During this trial, the company reaffirms it will adjust transport schedules to ensure trucking does not occur during school entrance and exit times to accommodate students at Granada.

Qualified person

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

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