Phase 2/Phase 3 Drilling

Interesting core from Eastern Extension hole GR-10-86, a 250-metre step-out south-southeast from the Preliminary Block Model.

Gold Bullion Development has completed nearly 11,000 metres of Phase 3 drilling at its Granada Gold Property as of January 21, 2011, with Phase 2 and Phase 3 drilling intersecting new mineralized structures throghout the LONG Bars Zone in both the Preliminary Block Model area and the Eastern Extension. Mineralization remains open in all directions at Granada and the Company expects to release a series of new assay results, in conjunction with an overall project update, in the very near future.

Many Phase 2 Eastern Extension holes have intersected VG such as the one pictured below.

In November, Gold Bullion reported the discovery of significant mineralization northeast and southeast of its LONG Bars Zone Preliminary Block Model, Extension and the Granada Gold Property as a whole.

GR-10-108, collared 30 metres north of GR-10-55 which delivered the longest mineralized intersection to date at Granada (356.6 metres @ 0.60 g/t Au), returned an interval of 141.7 metres grading 0.70 g/t Au. Assays are pending on 11 of 15 Phase 2 holes drilled into this promising ground north of Phase 1 Discovery Hole GR-10-17 while one of the goals of Phase 3 drilling is to expand the continuity of the feldspar porphyry and quartz veining in this particular area. GR-10-108 was collared 150 metres northeast of the Preliminary Block Model.

Meanwhile, nearly 500 metres south of GR-10-108, GR-10-86 returned 84.6 metres grading 1.00 g/t Au within a total near-surface interval of 127.5 metres (4.5 metres to 132 metres) grading 0.76 g/t Au as reported November 19. This hole was drilled toward the south and was collared approximately 180 metres southeast of Gold Bullion's Preliminary Block Model. The discovery of near-surface mineralization in the deep south of the Eastern Extension is considered a significant development.

Gold Bullion launched a 20,000 metre Phase 2 drill program at the Granada Gold Property in early May 2010, which was extended by 5,000 metres in September due to encouraging early results. The two-pronged strategy was to a) conduct infill drilling as well as further ewexploratory drilling within the Preliminary Block Model as a first step toward an eventual 43-101 resource estimate, and b) significantly expand the overall LONG Bars Zone mineralized area. Some deeper drilling was also planned, and has taken place, within both the Preliminary Block Model and the Eastern Extension in order to test the Granada structure at depth as most drilling at the property historically and in the Gold Bullion's Phase 1 program has been shallow (mostly less than 100 metres vertical depth).

DRILL HOLE LOCATION MAP - 23 APRIL 2012 5.4MB pdf - Read Press Release

All Phase 2 drilling was completed by late October and more than 20% of the Phase 3 program has been completed as of January 21, 2011.

Gold Bullion reported September 9 that their previous geological consultant had observed visible gold and disseminated sulphides, along with large alteration zones, in feldspar porphyry in numerous holes drilled in Phase 2. Assay results are still pending for most of these holes where mineralization was encountered near-surface and at depth.

The fact that porphyry is hosting gold is an interesting development historically for the Granada Property as a 2006 Technical Report on the property stated that all economic mineralization at Granada was related to quartz veining.

Gold Bullion's Preliminary Block Model continues to deliver strong results. GR-10-53, collared 88 metres southeast of GR-10-41 (reported July 29) and near Pit #2 East, intersected 68.3 metres of 2.16 g/t Au, including a high grade section of 4.60 g/t Au over 26 metres, within a wider near-surface interval of 110.5 metres (3.5 metres to 114 metres) grading 1.34 g/t Au. This hole, reported September 9, was drilled perpendicular to Vein #2 and is believed to closely approximate true width. Alteration dominated by intense sericitization and silicification was encountered in this hole along with quartz veining and abundant pyrite. GR-10-53 in inside Gold Bullion's Preliminary Block Model area where a potential non-NI-43-101 compliant 2.4 to 2.6 million ounces was outlined by the company in the spring of this year (see GBB's April 22, 2010, news release).

Highlights of Phase 2 drilling results received to date (through November 18) include:

Visible gold in drill core from the Granada Property

The total surface area drilled so far in the LONG Bars Zone Eastern Extension is 450 metres north-south and 500 metres east-west. Assay results are pending for seven holes drilled northwest of Phase 1 discovery hole GR-10-17 in close proximity to a possible northeasterly trending fault. There were also very encouraging visual observations in a series of holes (assays pending) drilled east and southeast of GR-10-17. Gold Bullion's previous geological consultant confirmed an extension to the LONG Bars Zone geological structure east of GR-10-17 after drilling was completed in July in GR-10-63, GR-10-65 and GR-10-73.

The total surface area drilled in the LONG Bars Zone Eastern Extension through mid-November was approximately 500 metres north to south x 500 metres west to east.