Golden Band Resources selling $30 million gold-based debenture to fund production start on La Ronge Gold Project

    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY
    CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW/

    GBN: TSX Venture Exchange

    SASKATOON, July 2 /CNW/ - Golden Band Resources Inc. (GBN: TSXV)
announced today that to finance the start of gold production on its La Ronge
Gold Project, it is selling a gold-linked convertible debenture as a private
placement. The company is seeking to raise gross proceeds of a minimum of $15
million up to a maximum of $30 million, with repayment of the interest-bearing
debenture over a three-year period with cash, physical gold, or shares in the
company. Blackmont Capital Inc. (the "Agent") will act on a commercially
reasonable efforts basis as the lead agent.
    A minimum of 15,000 Units up to a maximum of 30,000 Units will be offered
as a private placement at a price of $1,000 per Unit. Each Unit is comprised
of a convertible secured gold linked debenture with a face value of $1,000 and
400 detachable warrants. Each warrant is exercisable for one common share at
any time prior to the January 1, 2013 (the "Maturity Date") at an exercise
price of $0.75 per share if exercised prior to January 1, 2012, or $1.00 per
share if exercised from January 1, 2012 to January 1, 2013. Interest at 7% per
annum will be payable semi-annually in arrears, with the first payment due on
June 30, 2010. Subject to completion of filing requirements it is anticipated
that the debentures will be listed on the TSX Venture Exchange.
    The debentures shall be due on January 1, 2013 (unless accelerated) and
are repayable or convertible at the debenture holder's option, as follows: in
cash at the face value; or convertible into 1.1 troy ounce of gold; or
convertible into the Canadian dollar equivalent of 1.1 troy ounces of gold
based on the closing price of gold on December 31, 2012; or convertible into
1,333 freely traded common shares of the company if the debenture holder
exercises the option prior to January 1, 2012, or otherwise into 1,000 freely
traded common shares at the Maturity Date.
    At any time that is one year after the closing date, provided the company
has escrowed 33,000 ounces of gold and the price of gold has traded at a
minimum of US$1,250 per ounce for five consecutive business days, the company
may, at its option, accelerate the maturity date of the debentures on giving
not more than 60 days nor less than 30 days' prior notice to the debenture
holders.
    An estimated $26 million of the net proceeds of the offering (assuming
the maximum amount) will be used for the pre-production capital to develop the
La Ronge Gold Project, as described in the company's Pre-Feasibility Study
(see news release of January 26, 2009), with the balance for working capital
purposes. This financing structure will allow Golden Band to secure project
capital requirements by committing just a small percentage of the gold that
will be mined in the first three years of production from the La Ronge Gold
Project. This gold-based financing will also eliminate the significant
dilution of the company's shares. The Pre-Feasibility Study also found that
with gold priced at US$825 for years one and two and US$775 in years three and
four, the project would have a 2-year payback. The Company's objective is
annual production of at least 75,000 ounces of gold over a ten-year project
life.
    The company will be obligated to escrow a minimum of 20% of its annual
gold production to meet its obligation to deliver troy ounces of gold upon
conversion. The debentures will be direct obligations of the company and will
rank as a senior obligation secured by the assets of the La Ronge Gold Project
and subordinated only to foreign exchange and gold hedging facilities which
will be limited to a maximum of 40,000 ounces in the first year of production
and 20,000 ounces in years two and three. The company will be restricted from
incurring additional indebtedness on the La Ronge Gold Project (except for a
pre-defined basket) or from mortgaging, pledging, or charging the assets of
the La Ronge Gold Project to secure any indebtedness of the company while the
debentures remain outstanding. On a change of control (greater than 50%), the
company may redeem all the debentures, and the holders may require the company
to purchase any or all of the debentures at a price equal to 115% of the
original purchase price.
    The offering is subject to delivery of standard documentation; receipt of
all necessary regulatory and TSX-V approvals; the Agent being satisfied with
the results of their due diligence; and, prior to closing, that the company
will arrange for a minimum of $25,000,000 in financing including the debenture
private placement. The Agent will not release any funds from the debenture
private placement until this $25,000,000 minimum amount of financing is in
place.
    This offer will be available for sale in British Columbia, Alberta,
Saskatchewan, Ontario, and such other jurisdictions outside of Canada as may
be agreed to by the company. The offering will be made in Canada using these
terms and will not be available in the United States except under applicable
registration exemptions under the United States Securities Act of 1933.
    The Units will be sold in the selling jurisdictions on a private
placement basis pursuant to the "accredited investor" exemption under National
Instrument 45-106 and certain other available and agreed upon exemptions
without the preparation or filing of an offering memorandum or similar
disclosure document. The Units will be eligible for RRSPs, RRIFs, RESPs,
DPSPs, and TFSAs.
    Blackmont Capital Inc., as lead agent, may invite additional registrants,
as mutually agreed upon with the company, to participate in the offering.
Blackmont will receive a corporate finance fee, expenses, and a cash
commission of 6% of the gross proceeds of the private placement and an option
to acquire 80 Warrants (defined above) per Unit sold under the private
placement.

    About Golden Band

    Golden Band Resources, already Saskatchewan's leading gold explorer, is
now poised to also become a gold producer. Golden Band is a well-financed,
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 750 km(2), including 12
known gold deposits, five 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
to becoming 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,
supported by a positive Pre-Feasibility Study completed in January 2009, 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 strategy.

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

    "Rodney G. Orr"
    Rodney G. Orr, P.Geo.,
    President & CEO

    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 Frank Hrdy, P.Geo., Golden Band's VP Exploration, 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.

    Cautionary Statements on Forward-Looking Information: The statements made
in this News Release may contain certain forward-looking information. Actual
results may differ materially from those currently anticipated in such
statements. Certain risk factors may also materially affect the actual results
achieved by the Company. Potential and current shareholders are cautioned not
to place undue reliance on forward-looking information. The Company disclaims
any intent and undertakes no obligation to update publicly or otherwise revise
any forward-looking information whether as a result of new information, future
events, or other such factors that may affect this information, except as
required by law.

    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.

    %SEDAR: 00007862E

For further information: Golden Band Resources Inc., Rodney Orr,
President & CEO, Phone: (306) 955-0787 x7123, Fax: (306) 955-0788, Email:
rodney.orr@goldenbandresources.com; Wani Capital Corp.: Raju Wani, (403)
240-0555, Email: info@goldenbandresources.com, www.goldenbandresources.com