Great Basin Golds Hollister Project signs Ore Purchase Agreement with Newmont

Great Basin Gold Ltd. announced that it has signed an Ore Purchase Agreement with Newmont Mining Corporation whereby Newmont will purchase approximately 15,000 tons of bulk sample extracted from the Company’s Hollister Project, in Nevada, USA.

The 15,000 ton bulk sample was produced from the Hollister Project’s ongoing trial mining initiative and sold to Newmont for processing, as part of the Company’s metallurgical test work and processing optimization of the Hollister ore. It is expected that the ore will yield an average grade of 1.3 oz/ton of gold and 9 – 12 oz/ton of silver.

Shipping of the ore commenced earlier this week and processing of the 15,000 tons will be completed by the end of December 2008. The Ore Purchase Agreement further states that Newmont shall be responsible for all costs associated with the transportation and processing of the 15,000 tons with Great Basin Gold being paid a total of US$470/oz per recovered gold ounce.

President and CEO Ferdi Dippenaar said: “The Ore Purchase Agreement will not only allow the Company to further refine its understanding and definition of the most efficient mining and processing methodologies for Hollister, but also allows the Company to realize revenue which is important to ensure the sustainability of the project. The Company is busy reviewing its options for the processing of ore to be produced at the Hollister Project.”