Mr. Frank Basa reports

GOLD BULLION ANNOUNCES PLANS FOR A NEW EXPLORATION PROGRAM TARGETING A SIGNIFCANT EXPANSION OF THE GRANADA GOLD DEPOSIT

Gold Bullion Development Corp. will begin diamond drilling at its Granada gold property during September, 2016, as part of a new exploration program that is aimed at expanding its gold mineral resources near surface. The program will focus on several high-grade targets in the unexplored part of the property and is expected to continue over a period of two to three years.

The first two drill holes will target the Aukeko West and Pontiac vein systems previously identified in historical maps but which so far have not been drilled by Gold Bullion. The veins are located in the western bound of the Aukeko zone, about 500 metres west of the historical Aukeko shaft and 2,000 metres east of the historical Granada shafts.

The company's current plans include drilling another nine holes in three other locations that have not been drilled before. Three of the holes are scheduled to intersect the Syncline vein, where a historical grab sample in 1992 averaged 0.357 ounce (11.1 grams) per tonne; four holes are scheduled to drill test a vein extension under the orphan tailings; and two holes are scheduled to verify a possible northeast extension of the GR-10-73 vein intersection. Drilling in this first phase of the program is expected to total approximately 2,500 metres and be completed this year. Results will be disclosed once they are received and validated.

The planned drilling locations can be viewed on two maps on the company's website.

"Gold Bullion actively explored the Granada gold property from 2009 to 2014, but we only drilled 20 per cent of the potential vein structure, leaving 80 per cent still unexplored and the deposit open in all directions and at depth. With market conditions improving, we believe the time is right for the company to initiate another exploration program which could increase its mineral resources on the property," said Frank Basa, president and chief executive officer.

Based on almost 90,000 metres of drilling, the National Instrument 43-101 estimate published in 2013 for the Granada property is as follows: the measured resource is 946,000 ounces of gold (28,735,000 tonnes grading 1.02 grams per tonne), the indicated resource is 659,000 ounces (18.74 million tonnes grading 1.09 grams per tonne), and the inferred resource is 1,033,000 ounces gold (29,975,000 tonnes grading 1.07 grams per tonne) using a cut-off grade of 0.4 gram per tonne gold. This estimate is contained in NI 43-101 technical report for the Granada gold project resource estimate update, Rouyn-Noranda, Abitibi, Que., published Jan. 3, 2013, with an effective date of Nov. 15, 2012. Claude Duplessis, Eng, and Gilbert Rousseau, Eng, are the independent qualified persons in accordance with NI 43-101.

As part of the new exploration program, Gold Bullion is targeting a pit-constrained target of 88 million to 93 million tonnes at one gram per tonne gold plus another 10 million to 20 million tonnes at three grams per tonne gold underground. The potential quantity and grade reported as targeted exploration target are conceptual in nature. There has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

In addition, once permits are received, the company intends to commence exploration in the historical Aukeko shaft area where a bulk sample in 1938 averaged seven ounces of gold per ton (239.9 grams per tonne). The plan calls for an initial five trenches up to 100 metres in length to define zones for subsequent diamond drilling.

The potential strike length on the property is 5.5 kilometres, beginning at the westernmost drill hole near the historical Granada shafts and extending eastward to the historical Austin Rouyn shaft, where grab samples in 1940 showed up to 6.57 ounces of gold per ton (225.2 grams per tonne). Note that there are two crosscutting intrusive dikes of undefined width within that strike length. The potential strike length is conceptual in nature as there has been insufficient exploration to define the full length of the mineralized material and it is uncertain if further exploration will do so.

The new exploration program focuses on sections of the Granada property that were not included in the resource estimate in the 2013 technical report. Therefore, the drilling results, if successful, could potentially add to the numbers previously reported.

An updated resource estimate, when it is published in a new NI 43-101 technical report, would also include 400 historical holes that were drilled prior to the company's acquisition of the property in 2006 as sufficiently long sections of the core from the historical holes have been analyzed in work done since the publication of the 2013 technical report.

About Gold Bullion Development

Gold Bullion is developing the Granada gold property near Rouyn-Noranda, Que. The property includes the former Granada gold mine which produced more than 50,000 ounces of gold in the 1930s before a fire destroyed the surface buildings.

The company has obtained all necessary permits for the initial mining phase, for which stripping has already begun and has agreements are in place with first nations.

Claude Duplessis, PEng, of Goldminds Geoservices Inc., a geological, environmental and mining consultant, who is an independent qualified person in accordance with NI 43-101, has reviewed and approved the contents of this news release.

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