Granada Mine and Mill - Rouyn-Noranda, Quebec 

Gold Bullion Development Corp. (GBB) entered into a Lease To Purchase Agreement with Mousseau Tremblay Inc. for the acquisition of 100% interest in the Granada Mine located in Rouyn-Noranda, Quebec. The terms include $350,000 cash and lease payments, plus a 3% NSR with a 1.5% buyout for $1 million.

Historical data indicates that past production at the Granada Mine has been from narrow high-grade quartz veins.  Up to six veins have been identified on the property and extending to surrounding properties.  GBB has commissioned a NI 43-101 to evaluate the present reserves and further potential of the property and adjacent properties for the possibility of creating a super pit open mine.

GBB has installed a 250-ton/day gold mill that started milling the open pit ore from Vein #2 system on January 2, 2007.  This is the initial phase of GBB's feasibility program for the evaluation of the historic (pre NI 43-101) proven and probable mineral reserve reported by A.C.A. Howe Ltd. in 1994 of a total of 582,589 tons of 0.119 ounce per ton gold (528,665 tonnes at 4.08 g/t) of minerable ore. The mill is currently operating over a five-day work week and will begin operating on a seven-day week once 20,000 tonnes of ore is stock piled.

The mill is equipped with a Merrill Crowe system, a direct cyanidation process with gold precipitation. GBB is also purchasing a gravity plant with a capacity of 10 tonnes per day of high-grade ores or concentrates. This plant will be used to process the ores and concentrates from GBB's Granada Mine, the recently acquired Rousseau Mine, or to evaluate custom ores or tailings from other properties permitted for processing at the Granada plant.

On August 18, 2006 a test gold button was poured. The gold button weighing 4.3 kilograms (133 troy ounces) with a estimated gold purity of 75 percent was produced from the processing of the open pit Granada Mine ore at an average mill throughput of 10 tonnes per hour during the commissioning phase of the Granada Mill.

On August 31, 2006 the first official gold pour took place from ore that was stockpiled on surface from previous operators. The ceremony was attended by over fifty people including people who worked on the property in the past during its exploration and production stages, current investors, present personnel and directors of GBB. The pour produced a gold button weighing 5.7 kilograms (146 troy ounces) with an estimated gold purity of 80 per cent. As further milling continues, the button quantities and size will be increased.

Note: The above results have not been validated by GBB and do not comply with NI 43-101 reporting requirements and should not be interpreted as such and are reported only to show the potential of the area and identify mineralized zones that can reasonably be expected to extend onto GBB’s ground. GBB has not completed a feasibility study and there is no certainty that the proposed operations will be economically viable. These estimates are, in view of GBB, forward looking regarding production and costs.