Golden Band Resources Inc. Reports Income from Operations of $4.5 million in Second Quarter

SASKATOON, Nov. 28, 2011 - Golden Band Resources Inc. (TSXV: GBN) (the Company) released its interim financial and operating results for the quarter ended October 31, 2011 (Q2 2012). All figures are reported in Canadian dollars, unless otherwise noted:


Financial highlights:

- For the first time in its history, the Company reported income from operations - $4.5 million for Q2 2012.
- Cash flow from operations for Q2 2012 was $8.9 million.
- Revenue for Q2 2012 was $20.7 million on sales of 11,950 gold ounces, an average selling price of $1,731/ounce.
- The Company produced 11,870 gold ounces in Q2 2012.
- Cash cost of sales per ounce of gold sold was $900 for Q2 2012.


Operational highlights:

- Production from Roy Lloyd mine in Q2 2012 was 28,656 tonnes ore at an average grade of 11.95 grams/tonne (g/t) gold, an increase of 30% over Q1 2012.
- The Jolu mill processed 33,822 tonnes of ore in Q2 2012, which graded 10.91 g/t gold, producing 11,870 gold ounces, an increase of 22% over Q1 2012.


Review of Financial Results

Income from operations for the quarter ended October 31, 2011 was $4,505,485 compared with a loss of $1,285,607 for same quarter in the previous year. Income from operations for the six months ended October 31, 2011 was $6.0 million compared to a loss of $2.1 million for the same period in the previous year as the Company continued its successful start up of the Roy Lloyd mine and Jolu mill.

Gross profit for Q2 2012, the second full quarter of operations, was $6,240,414 million or 30%, up from $3,003,133 and 20% for Q1 2012, the first full quarter of operations as process improvements resulted in higher levels of mine and mill production.

General and administrative expenses were $453,572 for Q2 2012, down from $596,667 in the same quarter of the previous year due to a reduction in consulting fees related to start up. Wages and benefits and share-based compensation were $320,397 and $395,162, respectively, for Q2 2012, up from $139,795 and $172,600, respectively, for the same period in the previous year, a reflection of the increased level of staffing associated with ongoing operations. Exploration costs were $414,501 for Q2 2012 as the Company continued its program in the Waddy Lake area.

Other expenses were $463,244 in Q2 2012 due to a foreign exchange loss on the notes payable. The increase in fair value of notes, tied to the price of gold, for Q2 2012 was $241,194, down from $1,106,249 for the same period in 2011. Future income tax expense for Q2 2012 was $1,483,035 compared to a recovery of $501,676 for the same period in the previous year as positive earnings resulted in the reversal of deferred income tax timing differences.

Net and comprehensive income was $2,318,012 for Q2 2012 compared to a loss of $1,889,824 for the same period in the previous year due to the continued production and sale of gold bullion in second quarter of the 2012 fiscal year.

There was $8,923,823 cash generated by operations for the quarter ended October 31, 2011 versus a deficiency of $1,083,048 for the quarter ended October 31, 2010. There was $4,782,403 of this cash used in the repayment of the notes payable a month ahead of the last scheduled payment date along with capital and development costs of $5,760,847.


Review of Operational Results

For the quarter ended October 31, 2011, the Roy Lloyd mine produced 28,656 tonnes of ore with an average grade of 11.95 g/t gold. This represents an increase of 30% over mine production in Q1 2012 as a result of improvements in long-hole drilling and blasting.

Production at the Jolu mill was 11,870 gold ounces with 33,822 tonnes of ore processed with an average grade of 10.91 g/t gold. This represents a 22% improvement over mill production in Q1 2012 due to continued efficiencies gained in plant maintenance and critical supply levels as well as operational improvements in density slurry control and leaching/carbon-in-leach circuits.

Total cash costs were $900/ounce in Q2 2012 compared to $901/ounce in Q1 2012 as improvements in production levels were partially offset by increases in the cost of blasting supplies, higher than expected costs in the Alimak Zone bulk sample and changes in mine design implemented at Roy Lloyd that will benefit future operations.


Exploration

The Company completed its summer exploration program in the Komis and EP mine (Round Lake) areas and an initial phase of follow-up diamond drilling was conducted in September to test the newly discovered Fireweed gold prospect and targets in the Round Lake area.

In Q2 2012, the Company agreed to purchase Cameco Corporation's 66.66% interest in the Preview Lake project within the southern La Ronge Gold Belt. Closing is expected by the end of December 2011. The property is 40 km south of Roy Lloyd mine and 85 km south of the Jolu mill.

The Company has optioned the North Lake gold deposit from 1542651 Alberta Ltd. Notice has been provided to the vendor of its intention to proceed with the exercise of the option. The option agreement gives the Company the right to evaluate the property and, subject to certain terms and conditions, exercise the option to acquire the claim.

The North Lake gold deposit is 24 kilometres south of the Company's Roy Lloyd mine and 9 km north of the former Contact Lake gold mine. It is located 62 km north of the Town of La Ronge, immediately adjacent to Highway 102. Work completed during the 2011 exploration program was designed to provide an evaluation of the North Lake gold deposit and environment of the rocks hosting the mineralization. This included geological reconnaissance, prospecting, collection of 57 grab and 81 channel rock samples, and 328 soil samples. A total of 101 man-days were spent on this program.


Outlook

Mine development at the Roy Lloyd mine will continue to focus on establishing access below existing production areas. In Q3 2012, the decline ramp is to be extended down to the 1175 level. Also, the first phase of a surface diamond drill program to provide additional data on the Inferred Mineral Resource below existing mineral reserves will commence. This is to be followed up with an underground diamond drill program with the objective of providing detailed information for production planning purposes.

At the Komis project, development is expected to commence in Q3 2012 from the lowest level of the mine workings with the objective of providing further geological information. The Company will also update its mineral resource estimate based on the latest engineering and geological information gathered, and the results of the second phase of the drilling program scheduled to be completed early in the Q3 2012. Assay results are pending for the drilling program.

It is expected that ore production from the EP open pit will commence early in Q3 2012, initially targeting the supergene ore zone. The mineral reserve of 51,000 tonnes grading 5.51 g/t gold is scheduled to be mined over the remainder of the fiscal year.

Ore from EP will be blended with that from Roy Lloyd and gold production from the Jolu mill is expected to be 45,000 gold ounces for the fiscal year ended April 30, 2012.


About Golden Band

Golden Band Resources, already Saskatchewan's leading gold explorer, is now also its newest gold producer. Golden Band is a Saskatchewan-based, publicly listed company (GBN: TSXV) whose focus is the long-term, systematic exploration and development of its 100%-owned La Ronge Gold Belt properties. Since 1994, Golden Band has assembled through staking and strategic acquisition a land package of more than 875 km2, including 12 known gold deposits, four former producing mines, and a licensed gold mill. Golden Band's key value drivers are the methodical and systematic targeting of primary to advanced-stage exploration while progressing along a parallel path of being a sustainable gold producer. The Company is aggressively pursuing its near-term goal of commercial production of its Bingo, Komis, and EP deposits with processing at the 100%-owned Jolu mill. The Company's objective is the annual production of at least 75,000 ounces of gold over a ten-year project life. Other longer-term objectives include the continuation of its highly successful exploration and acquisition strategies.


On behalf of the Board of Directors of Golden Band Resources Inc.,

"Ronald K. Netolitzky"
Ronald K. Netolitzky, Chairman



All of Golden Band's exploration programs and pertinent disclosure of a scientific nature are prepared and/or designed and carried out under the supervision of Charlie Harper, P.Geo., who serves as the qualified person (QP) under the definitions of National Instrument 43-101. All of Golden Band's development-related programs and pertinent disclosure of a development nature are prepared and/or designed and carried out under the supervision of Gary Haywood, P.Eng., Golden Band's VP of Operations and COO, who serves as the qualified person (QP) under the definitions of National Instrument 43-101.


Caution Regarding Forward-Looking Information and Statements

This document includes statements and information about the Company's expectations for the future. When Golden Band's strategy, plans, and future financial and operating performance, or other things that have not yet taken place, are discussed, the Company is making statements considered to be forward-looking information or forward-looking statements under Canadian and United States securities laws. Such forward-looking information and statements in this document are referred to as "forward-looking information".

Generally, forward-looking information can be identified by the use of forward-looking terminology such as, for example, "plans", "expects" or "does not expect", "is expected", "budget", "goal", "target", "project", "potential", "strategy", "outlook", "scheduled", "predicts", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate" or "believes", and similar expressions, or the negative connotation thereof or variations of such words and phrases or statements that certain actions, events or results, "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof.

Readers are cautioned that the forward-looking information in this document represents Golden Band's current views and can change significantly. Forward-looking information contained in this document is based on certain material assumptions, including, but not limited to:

- geological and other conditions that may affect exploration, development, and the amenability for mining;
- the Company's ability to comply with current and future environmental, safety and other regulatory requirements, and to obtain and maintain required regulatory approvals; and,
- the Company's operations not being significantly disrupted as a result of political instability, nationalization, terrorism, sabotage, blockades, breakdown, natural disasters, governmental or political actions, litigation or arbitration proceedings, or other development or operating risks.

Readers are cautioned that such assumptions are not exhaustive and may prove to be incorrect. Although the Company believes that the assumptions on which the forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking statements because Golden Band can give no assurance that they will prove to be correct.

Actual results and events may be significantly different from those currently expected due to a number of material risks. These include, but are not limited to:

- the Company's inability to enforce its legal rights, or its being subject to litigation or arbitration that has an adverse effect on the Company;
- defects in title to the Company's properties;
- unexpected or challenging geological, hydrological, or mining conditions;
- environmental, safety and regulatory risks, including increased regulatory burdens or delays;
- the Company's inability to obtain or maintain necessary permits or approvals from government authorities or other third parties;
- changes to government regulations or policies, including, but not limited to, tax and trade laws and policies;
- natural phenomena, including, but not limited to, inclement weather, fire, and flooding; and,
- operational disruption of the Company due to problems and other developments and operating risks.

In addition, Golden Band's annual and interim MD&A, which are available on SEDAR at www.sedar.com, include a discussion of other material risks that could cause actual results to differ significantly from the Company's current expectations.

Forward-looking information is designed to help the reader understand management's current views of the Company's near and longer-term prospects, and it may not be appropriate for other purposes. The forward-looking information contained in this document is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

The forward-looking information is expressly qualified by these cautionary statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.



For further information:

Mark J. Thiel, CA, VP Finance and CFO
Golden Band Resources Inc.
Phone: 306 385 7128
Fax: 306 955 0788
Email: mark.thiel@goldenbandresources.com

Investor Relations:
Raju Wani: 403 240 0555
Tony Perri: 604 682 6852
Email: info@goldenbandresources.com
www.goldenbandresources.com