Great Basin Gold Announces $75 Million Bought Deal Public Offering of Common Shares (ccnm)

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 2, 2011) -

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Great Basin Gold Ltd. ("Great Basin Gold" or the "Company"), (TSX:GBG)(NYSE Amex:GBG)(JSE:GBG) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets pursuant to which the underwriters have agreed to, on a bought deal basis, buy 29,415,000 common shares of the Company at a price of $2.55 per common share for aggregate gross proceeds of $75.0 million (the "Offering"), by way of a short form prospectus. The Company has granted the underwriters an over-allotment option to purchase up to an additional 15% of the Offering, for a period of 30 days following the closing.

Net proceeds from the Offering will be used for working capital to support the ramp up at Burnstone and to advance exploration activities at identified exploration targets at Hollister. Working capital for Burnstone includes additional on-reef development required by the preferred Long Hole Stoping mining method that is expected to accelerate and enhance delivery of planned production in the medium term.

The Offering is scheduled to close on or about February 23, 2011 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.