Gold Bullion Development - GBB April 24th

Shares outstanding: 158,000,000

Recent Share Price: $ 0.46 CAD

Market Capitalization: $72,680,000

52 Week High/Low: 0.38/0.93

Structure: 1.2 km strike length, 350 metre thickness and roughly 300 metre depth.

Granada, Gold Bullion’s flagship project is a low grade bulk-tonnage gold deposit on the Cadillac Trend in Quebec the most prospective gold rush area as of late. Gold Bullion is still currently drilling for structure but the deposit remains open in all directions on the 11,000 hectares plus they own (which has been increased from a land position of only 71 hectares a year ago today).

GBB Valuation Comparables:

Gold Companies With Resource Estimates in Past 6 Months

TRR - Reached market cap of $630 million based on Resource Estimate of 4.2 Moz gold Inferred at Cote Lake Deposit. That’s a valuation of $150/oz gold in Ontario. Now trading at $580~ million market cap.

Share Price April 1st 2010: $1.14

Share Price Now: $4.74

ORE - Reached market cap of $184 million based on 1.6 Moz Indicated and 1.9 Moz inferred in at their Bombore Deposit in Burkina Faso. That’s a valuation of $53/oz gold which was cheap at the time since their market cap has responded trading now at a market cap of $400 million or closer to $115/oz gold based on reserves.

Share Price : April 1st 2010: $0.70

Share Price Now: $4.68

RVC - Reached market cap of $200 million based on 1.8 Moz Indicated and 2.35 Moz Inferred at their Blackwater Deposit in British Columbia. Since they have reached a market cap of $318 million or $78/ounce of gold.

Share Price April 1st 2010: $1.73

Share Price Now: $7.20

- Brett Resources bought out last year by Osisko.

BBR vs GBB

Brett Resources: At time of sale Brett had proven up an Inferred resources of 6.7 million ounces of gold at 0.7 g/t au to depth of 300 metres.

Gold Bullion: Potential in block model alone adjusted to 300 m depth for 4.0 + Million oz gold, as down to 70 m lies our potential for 2.4 to 2.6. This estimate excludes recent extensions found ENE and does not give any credit to our Long Bars Zone 2 which is said to be similar in dimensions and mineralization to the Block Model.


Brett Resources: Metallurgical data: Gold used for sample averaged 0.60 to 3.4 g/t au, recovery was 93%.

Gold Bullion: Metallurgical data: Gold used for sample averaged 0.5-0.6 g/t au (all high grade samples were excluded) still came up with 93% recovery rates.


Brett Resources: At the date of being bought out Brett Resources had completed just over 31,000 metres of driling on their Hammond Reef deposit, a total of 49,000 metres between historical (18,000 metres) and their own.

Gold Bullion - To date GBB has drilled over 40,000 metres across their Phase 1, 2 and 3 drill programs but also have a database larger than Brett of over 490 historical diamond drill holes comprising 25,000 + metres for a total of over 65,000 metres to base on the Resource Estimate on.

Infrastructure for the two companies is close to the same as GBB located located in Quebec, Brett inOntario, except GBB is half the distance from major highways/towns.

Brett Resources - No other existing base metal properties

Gold Bullion - This month are drilling to start exploration with a large Phase 1 6,000 metre drill program planned for their Castle Silver Mine. Will be distributing shares for every share currently held in GBB at the end of summer for their silver property.

Brett Resources Significant Drill Results

2007

38.5 m @ 0.81, 43.5 m @ 1.22

84 m @ 1.05, 58.5 m @ 0.74, 48 m @ 0.95, 69 m @ 0.73, 43.5 m @ 1.23

102 m @ 1.27, 108 m @ 0.93, 43 m @ 1.00, 60 m @ 1.04

244 m @ 1.04, 82.5 m @ 0.88, 267 m @ 1.02, 111 m @ 0.9, 112 m @ 1.2, 111 m @ 0.93

120 m @ 1.59, 178 m @ 1.08, 175 m @ 0.98, 114 m @ 1.26, 127.5 @ 1.03

2008

37 m @ 3.35, 22 m @ 3.61, 30 m @ 2.53

55 m @ 1.49, 49.5 m @ 1.44, 123 m @ 1.4

162 m @ 1.23, 102 m @ 1.19, 154 m @ 1.2

141 m @ 0.65, 91 m @ 0.67, 252 m @ 0.55

Based on these results alone - 114 diamond drill holes comprising of 31,000 metres as well as 85 historical drill holes of 18,000 metres - a total of 49,000 metres Brett Resources came up with the following estimate.
- Less significant assays under 150 metres at under 0.4 g/t are not included as I omitted GBB's less appealing holes as well.

The base case Inferred Resource is now 155 million tonnes at 1.04 grams per tonne (g/t) gold (Au) totaling 5.19 million ounces (oz) of Au at a 0.6 g/t cutoff.


Gold Bullion Development Significant Drill Results

2010


73 m @ 0.88, 61 m @ 0.55, 65.5 m @ 1.21, 68.8 m @ 1.07, 123 m @ 1.07
75 m @ 1.5, 20.5 m @ 4.98, 68 m @ 2.16, 182 m @ 0.44, 40.5 m @ 4.05
116 m @ 1.69, 356.6 m @ 0.6, 69 m @ 2.59, 127 m @ 0.76, 62.4 m @ 1.06
141 m @ 1.07, 228 m @ 0.5, 135 m @ 0.62, 118 m @ 0.45, 161 m @ 1.2
223 m @ 0.6, 198 m @ 0.74, 108 m @ 0.78, 78 m @ 0.87, 108 m @ 0.63
101 m @ 0.51, 83 m @ 0.97, 177 m @ 0.51, 151 m @ 0.57
77.5 m @ 0.72, 73 m @ 1.28, 78 m @ 0.7, 94 m @ 1.03

Brett was bought out with 110 M shares outstanding for $3.50/share or $385 million dollars based on 6.7 Moz at 0.7 g/t au. Currently Gold Bullion is valued at about $60 million dollars with a very likely possibility of coming up with at least 3+ million ounces in their first Resource Estimate. Brett was purchased for $58.00/oz on an INFERRED resource basis by Osisko based on their 6.7 million oz gold.

Gold Bullion is looking to prove at least 3 million oz + we know we have a similar structure out East that looks to contain at this point at least 1.5 Moz and we will be able to test for more high grade structures in the next month or two as we start drilling the Aukeko Shaft. At 158 M shares outstanding with close to $8 million in the bank, a Castle Silver Mine, and a property that's structure has been doubled since this summer we should not be seeing our Granada property valued at roughly $60 million based on at least 3 million ounces of gold in the Preliminary Block Model alone.

What must also be remembered is the industry avg. is over $105 per oz anywhere in the world for gold and Osisko currently gets $400/oz whereas other Ontario/Quebec companies like Lakeshore receive over $850/oz for their Proven/Probable Reserves. Valuing us at only $20 an ounce right now in Quebec is far too conservative for what we've shown the market. Low grade tonnage deposits are not rewarded by the Market on news releases until the Resource Estimate is in the pipeline and this is the best chance to be scooping up shares for a 150 % on the Resource Estimate as we will not be trading at these levels in a month or two in anticipation of it. Osisko in December of 2005 closed at 0.50 cents a share and with their Resource Estimate the next year and only 20 M shares of dilution closed the next year at over $4.50 a share with gold hovering around $700/oz. They already had 190 M shares out and were valued close to $1 billion dollars with gold at $700/oz and their estimated cash costs at $325/oz with only 6 Moz of inferred resources.

“Osisko Exploration Ltd. (OSK:TSX-V, EWX: Deutsche Boerse) is very pleased to announce the first National Instrument 43-101 compliant, inferred resource estimate from its 100%-owned Canadian Malartic deposit, located in the Abitibi region of Quebec. RSG Global Consulting Pty Ltd. of Perth, Australia ("RSG Global") has authorized Osisko to release results of their inferred resource estimate on the main portion of the Canadian Malartic gold deposit. Based on a lower cutoff grade of 0.5 g/t Au and using various statistical approaches, RSG Global has estimated an inferred resource between 6.54 and 6.59 million ounces gold. “

Based on $700 gold in 2006 they received a valuation of approximately $150 per Inferred ounce on their Malartic deposit. We're getting $20 an ounce before our Resource Estimate in 2011 with $1510 gold with a deposit on strike with Osisko with dimensions that are almost the same now in stucture. The main problem with GBB is it lacks buyers on their drill results as the results always look bad to the average investor but those that do their homework can see the deposit building. Companies without "exciting" drill results lack catalysts for the share price except Resource Estimates or Preliminary Economic Assessment Studies therefore they basically go unnoticed until they have a definitive label on the ounces in the ground. With the tonnage GBB has and over 50,000 metres of drilling + another 30,000 metres historical they will have no problem coming up with 3 Million ounces at Granada for the 43-101 Resource Estimate when it’s filed.

Target Price 3 Months: $0.90 - $1.10

Current Price: $0.46

Market Capitalization @ $1.10 = $173,000,000

Fair Market Valuation @ 2.5 Million Ounces Gold Inferred

$120 Industry Average Gold Price @ 30% discount = $2/oz of gold

2.5 X $84/oz = $210 million dollars

Market Capitalization = $210 M or $1.33 a share, more than a 250% gain from here.

Those values are discounted for ounces from my estimate of 2.9 Million Ounces at Granada Inferred as well as a $120 dollar Industry average gold price at $1400 gold.