Golden Band Resources Announces up to $1,500,000 Financing



    GBN: TSX Venture Exchange

    SASKATOON, Aug. 26 /CNW/ - Golden Band Resources Inc. ("Golden Band" or
the "Company") (GBN: TSXV) announced today that it will complete a
non-brokered private placement of up to 7,500,000 units (the "Units") at a
price of $0.20 per Unit for gross proceeds of up to $1,500,000 (the
"Offering"). Each Unit shall consist of one common share in the Company
("Share") and one common share purchase warrant of the Company ("Warrant")
exercisable for a period of 12 months from closing. Each Warrant shall be
exercisable into one common share of the Company at $0.28 per share.
Commencing on the date that is four months and one day after the closing date,
if the closing price of the Company's common shares on the TSX Venture
Exchange, or any other stock exchange on which the Company's common shares are
then listed, is at a price equal to or greater than $0.40 for a period of 15
consecutive trading days, the Company will have the right to accelerate the
expiry date of the Warrants by giving written notice to the holders of the
Warrants that the Warrants will expire on the date that is not less than 30
days from the date notice is provided by the Company to the Warrant holders.
    The proceeds of the sale of the Units will be used for the Company's
development-related work in connection with its plans to start gold production
using the Company's Jolu mill, and for general working capital.
    Golden Band will pay a cash fee of up to 5% of the gross proceeds of
these private placements raised by finders and issue non-transferable warrants
("Finder's Warrants") equal to 5% of the Units sold pursuant to the efforts of
finders. Each Finder's Warrant will be exercisable to acquire one common share
at $0.28 expiring 12 months after the closing date. Certain directors and
officers of the Company are expected to participate in the offering on the
terms set forth above and such participation has been approved by the
independent directors of the Company. The Company is relying upon an exemption
from the related party requirements of OSC Rule 61-501. The securities offered
hereby will be subject to a four-month plus one-day hold period from the
closing date in accordance with applicable securities laws. The Company
anticipates closing of the Offering as soon as practicable subject to receipt
of all necessary regulatory and TSX Venture Exchange ("TSXV") approvals.

    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: All statements,
trend analyses, and other information contained in this press release relative
to markets about anticipated future events or results constitute
forward-looking statements. Forward-looking statements are often, but not
always, identified by the use of words such as "seek", "anticipate",
"believe", "plan", "estimate", "expect" and "intend" and statements that an
event or result "may", "will", "should", "could" or "might" occur or be
achieved and other similar expressions. Forward-looking statements are subject
to business and economic risks and uncertainties and other factors that could
cause actual results of operations to differ materially from those contained
in the forward-looking statements. Forward-looking statements are based on
estimates and opinions of management at the date the statements are made. The
Company does not undertake any obligation to update forward-looking statements
even if circumstances or management's estimates or opinions should change.
Investors should not place undue reliance on forward-looking statements.

    
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.
    

    %SEDAR: 00007862E




For further information:

For further information: Rodney Orr, President & CEO, Golden Band
Resources Inc., Phone: (306) 955-0787 x7123, Fax: (306) 955-0788, Email:
rodney.orr@goldenbandresources.com, www.goldenbandresources.com; Motivia
Communications: Roger Francis, (306) 242-0694 x5, Toll free: 1-866-501-5651,
Email: info@goldenbandresources.com

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Golden Band Resources Inc.

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