GOLD BULLION CLOSES NON-BROKERED PRIVATE PLACEMENT AND RETAINS MARKETING AND INVESTORS RELATIONS CONSULTANTS

Gold Bullion Development Corp. has closed a non-brokered private placement financing by the issuance of 18,091,019 flow-through units at a purchase price of 6.5 cents per FT unit and 6,952,698 non-flow-through units at a purchase price of five cents per NFT unit for gross proceeds of $1,523,551. Each FT unit consists of one flow-through common share in the capital of the company and one-half of a non-transferable share purchase warrant, each whole warrant entitling the holder to purchase one non-flow-through common share in the capital of the company on or before Sept. 6, 2016, at a purchase price of 10 cents per share. Each NFT unit consists of one non-flow-through common share in the capital of the company and one transferable share purchase warrant, each warrant entitling the holder to purchase one non-flow-through common share in the capital of the company on or before Sept. 6, 2016, at a purchase price of 10 cents per share.

In connection with the private placement, a director of the company arranged a sale of 1.5 million common shares of the company at a price of five cents per share in a private transaction. The proceeds of this sale were used by the director's spouse to purchase an equivalent dollar amount of NFT units in the private placement. The director also subscribed for an additional 438,461 FT units in the private placement.

The company paid cash finders' fees totalling $73,255.80 in connection with the private placement.

All securities issued by the company pursuant to the private placement are subject to a hold period of four months and one day and cannot be resold until Jan. 5, 2015.

Proceeds of the private placement will be used for stripping and trenching on its Granada gold property in Quebec in preparation of its rolling start and for general working capital.

Marketing and investor relations

Gold Bullion also announces the engagement of two consultants to provide marketing and investor services.

Palisade Capital Corp. of London, United Kingdom, has been retained as a marketing and investor relations consultant to the company for a period of 10 months at a fee of $100,000 plus expenses. Collin Kettell, chief executive officer of Palisade, will be primarily responsible for providing the consulting services to Gold Bullion. Palisade offers consulting services to public and private companies, which wish to expand their corporate profile and to attract new international investors. Palisade will organize introductions and meetings in the European, Canadian and U.S. investment community on behalf of Gold Bullion. The engagement of Palisade is intended to increase investor awareness of Gold Bullion and to increase liquidity in Gold Bullion's shares.

Palisade has also been granted a stock option to buy 300,000 shares in the capital of the company, exercisable at 10 cents per share for a period of 12 months. The option is granted pursuant to the company's stock option plan and will vest in accordance with the provisions therein and the policies of the TSX Venture Exchange, which require that an option granted to a consultant providing investor relations services must vest in stages over 12 months with no more than one-quarter of the option vesting in any three-month period.

Palisade acquired three million NFT units of Gold Bullion at five cents per NFT unit (gross proceeds of $150,000) under the private placement.

The company has also entered into an agreement with FronTier Merchant Capital Group, headquartered in Toronto, Canada, to provide marketing and investor relations services for a term of 12 months. FronTier will assist the company by increasing market awareness utilizing a number of financial market communications initiatives, the core of which will be facilitating in-person introductions for Gold Bullion with institutional and retail brokers and investors in a number of cities across Canada, the United States, Europe and Australasia.

Under the terms of the engagement, FronTier will receive compensation consisting of a monthly fee of $5,000 plus expenses and a stock option grant of 250,000 shares in the capital of the company, exercisable at 10 cents per share for a period of 12 months. The option is granted pursuant to the company's stock option plan and will vest in accordance with the provisions therein and the policies of the TSX Venture Exchange, which require that an option granted to a consultant providing investor relations services must vest in stages over 12 months with no more than one-quarter of the option vesting in any three-month period. FronTier acquired an aggregate of 575,000 NFT units and 250,000 FT units (gross proceeds of $45,000) under the private placement.

Gold Bullion's engagement of Palisade and FronTier is subject to TSX Venture Exchange approval.

We seek Safe Harbor.