Golden Band Resources Receives Updated and Expanded Positive Preliminary Economic Assessment on La Ronge Gold Project



    GBN: TSX Venture Exchange

    SASKATOON, Feb. 26 /CNW/ - Golden Band Resources Inc. ("Golden Band" or
the "Company"; TSX-V: GBN) announced today that an independent update of the
initial positive Preliminary Economic Assessment ("PEA" or "Scoping Study") of
June 4, 2007 has been completed on the Company's La Ronge Gold Project in
northern Saskatchewan (see previous news release of April 19, 2007). The
study's independent authors consider that Golden Band's expanded La Ronge Gold
Project operating plan has a realistic potential for economic viability based
on the potentially mineable portions of the resource estimates of the Komis,
EP, Tower East, Birch Crossing, and Bingo gold deposits, and using the
Company's Jolu mill.
    "Golden Band is very pleased with the viability and potential
demonstrated with this expanded and updated preliminary economic assessment of
our La Ronge Gold Project - even under a conservative base case analysis",
stated Rodney Orr, Company President and CEO. "The level of detail and the
rigour in this scoping-level study approaches that of a pre-feasibility level
examination of the project's economics and technical requirements. With
permitting now underway, we are continuing to move aggressively towards a
production start-date decision with ongoing advanced exploration, such as the
underground program in progress at the Bingo deposit, and the detailed
design-stage engineering work for the Jolu mill refurbishment and expansion."
    The highlights of the preliminary economic assessment under a
conservative base case are included in Table 1. Two economic scenarios using
higher prices for gold are presented in Table 2.

    
         Table 1: Comparison of Base-Case Updated PEA and Initial PEA
    -------------------------------------------------------------------------
                                                 Updated PEA     Initial PEA
    -------------------------------------------------------------------------
    Gold Price US$/ounce                         Y1-Y4: $680     Y1-Y4: $629
                                                 Y5-Y8: $609
    -------------------------------------------------------------------------
    Exchange Rate                                       0.91            0.88
    -------------------------------------------------------------------------
    IRR                                                 20.6%           24.9%
    -------------------------------------------------------------------------
    Total Recovered Ounces Gold                      303,400         141,500
    -------------------------------------------------------------------------
    Average Recovered Grade (g/t Gold)                  4.45            5.39
    -------------------------------------------------------------------------
    NPV @ 7% discount rate                  $11.1 million    $6.5 million
    -------------------------------------------------------------------------
    Cash Flow                                  $23.1 million   $11.3 million
    -------------------------------------------------------------------------
    Payback Years                                        1.9             2.2
    -------------------------------------------------------------------------
    Operating Costs:            per tonne             $67.20          $91.04
                                ---------------------------------------------
                                per ounce             US$427          US$464
    -------------------------------------------------------------------------
    Pre-Production Capital Costs               $28.7 million   $17.1 million
    -------------------------------------------------------------------------
    Total Capital Costs                        $51.5 million   $14.8 million
    -------------------------------------------------------------------------
    

    This updated PEA report is authored by P&E Mining Consultants Inc.
("P&E") of Brampton, with input from Geosim Services Ltd. of Vancouver
(Mineral Resource Estimates for EP and Birch Crossing), Wardrop Engineering
Inc. of Saskatoon (Processing, Project Infrastructure and Capital Cost
Estimate Section), and Clifton Associates Ltd. of Regina (Project
Infrastructure and Capital Cost Estimate Section). The updated PEA report will
be filed on SEDAR (www.sedar.com) and Golden Band's website at
(www.goldenbandresources.com) within 45 days of this press release.
    Since the initial scoping study (PEA) of June 2007, Golden Band has
expanded and updated its gold resource estimates with additional drilling at
the Tower East and Birch Crossing deposits in the winter of 2007, and at the
Bingo and EP deposits in the summer of 2007. With the new National Instrument
43-101 (NI 43-101) compliant resource estimate for the Birch Crossing gold
deposit (see news release of December 17, 2007) and the updated NI 43-101
compliant resources at the Tower East and Bingo gold deposits (see news
releases of December 3, 2007 and January 8, 2008, respectively), the scope of
the development project proposal for the PEA was expanded to incorporate these
additional resources.
    The updated PEA indicates improved economics over the initial study in
that it is based on a long-term outlook that includes doubling the Life of
Mine Plan to eight years, reduced operating costs, and a quicker payback.
Production at Golden Band's centrally located Jolu gold mill is anticipated at
an expanded rate of 700 tonnes per day (tpd) for years one to four, and then
increasing to 1,000 tpd at the end of year four through the remainder of the
project's life. Total planned gold production for the eight-year project is
303,400 ounces, a 114% increase over the initial PEA study.
    "We believe that the overall project life can be further increased beyond
eight years with the realization of additional resource potential on a number
of nearby exploration properties currently being drilled and/or evaluated by
Golden Band, as well as through possible toll milling opportunities for the
Jolu mill", stated Gary Haywood, VP Operations & COO. "Our plan is to continue
to upgrade Golden Band's known resources in the near-term production scenario,
while also maintaining the longer term strategy of sustainability beyond the
8-year project plan."

    Project Cash Flow

    At the request of Golden Band, and due to the continuing advancements by
the Company in its La Ronge Gold Project, P&E applied a rigorous and
conservative base case scenario that will allow an easier transition to
subsequent requirements of an advanced project evaluation at the
pre-feasibility level. This conservative base-case scenario means that current
costs (without price escalation) are used, as well as gold prices that are
based on 24- and 36-month historical averages, rather than current prices.
    The updated PEA base case is conservatively evaluated on a gold price of
US$680/oz (24-month trailing average as of February 24, 2008) for years one to
four, and at US$609/oz (the 36-month trailing average as of February 24, 2008)
for years five to eight. The US$:C$ exchange rate used in the updated study is
$0.91 (vs. $0.88 in the initial study). All dollar amounts are Canadian
dollars unless otherwise indicated.
    The expanded project was evaluated on a pre-tax cash flow basis and
generates a net pre-tax cash flow of $23.1 million, as compared to $11.3
million for the initial PEA. This results in a pre-tax Internal Rate of Return
(IRR) of 20.6% (vs. 24.9%), and a pre-tax Net Present Value (NPV) of $11.1
million (vs. $6.5 million) when using a 7% discount rate. In the base case
scenario, the project has a payback period of 1.9 years (vs. 2.2 years for the
June 2007 PEA).
    The pre-production capital expenditures of the expanded project scope are
estimated at $28.7 million. This increase of $11.6 million over the initial
PEA is due to the much-expanded scope of work that includes extending the life
of the Jolu mill site, with the work based on projected cost increases that
are in line with current industry cost.
    The total estimated life of mine capital expenditures for the project,
net of any salvage value, are $51.5 million. This includes costs for the
pre-stripping of open pit mines at Komis, EP, Tower East, and Birch Crossing;
pre-production development work for the Bingo underground mine; building of a
private haulage road from Jolu to the Tower East and Birch Crossing mines; and
increasing the Jolu mill's capacity initially from 500 tpd to 700 tpd, and
then to 1,000 tpd in year four.
    Total operating costs in the expanded project scenario are calculated at
$67.20 per tonne processed, as compared to the June 2007 PEA costs of $91.40
per tonne. This translates to an improved operating cost of US$427 per
recovered ounce of gold, as compared to US$464 in the June 2007 PEA.
    The project's financial decision points are divided into two
time-dependent stages: the first-stage being mill refurbishment and expansion
to 700 tpd, and an initial 3.5-year mining and milling operation of the Bingo
and Komis/EP deposits; and the second stage being mill expansion to 1,000 tpd
and mining and milling of the Tower East and Birch Crossing deposits. The NPV
of the entire eight-year project is estimated to be $11.1 million. The NPV of
the project to the end of stage one, prior to the second expansion of the
mill, is estimated to be $5.8 million. The second stage contributes slightly
less to the total NPV. Any decision of delaying or not proceeding with the
second stage would only be taken if the price of gold fell below the economic
feasible level at the time of the stage-two expansion.

    Sensitivity Scenarios for Higher Gold Prices

    In addition to the base case, P&E also calculated two sensitivity
scenarios to evaluate the La Ronge Gold Project's potential at gold prices and
dollar exchange rates that better-reflect their potential volatility and
upside potential. With all other economic and technical factors left
unchanged, the first scenario assumes a constant gold price of US$900 per
ounce over eight years, while the second uses US$750 per ounce for years one
and two, and $US609 per ounce for years three to eight (Table 2).

    
               Table 2: PEA Base Case vs. Gold Price Scenarios
    -------------------------------------------------------------------------
         Gold Price       Exchange Rate     IRR      NPV      Payback Period
           US$/oz            US$:C$          %     @ 7%         Years
    -------------------------------------------------------------------------
                                PEA Base Case
    Y1 to Y4  Y5 to Y8        0.91         20.6%  $11.1 million     1.9
      $680      $609
    -------------------------------------------------------------------------
                       Scenario 1: Constant Gold Price
         Y1 to Y8             1.00         63.9%  $51.0 million     1.2
           $900
    -------------------------------------------------------------------------
                       Scenario 2: Variable Gold Price
    Y1 to Y2  Y3 to Y8        0.91         29.7%  $15.4 million     1.4
      $750      $609
    -------------------------------------------------------------------------
    

    Table 2 demonstrates the positive changes in the NPV and IRR from the
Base Case for the two higher gold price scenarios. While the likelihood of
these cases is unknown, the Chicago Board of Trade Futures Contract price for
gold for December 2008 is currently US$958 per ounce.
    Golden Band believes that its La Ronge Gold Project's viability has a low
sensitivity to changes in the current price of gold, as only a significant
reduction in the current price of gold could make the project uneconomic. The
Internal Rate of Return, however, is highly sensitive to changes in the price
of gold, and is moderately sensitive to changes in operating and capital
costs.

    Gold Resources

    From the initial PEA to the present study, the potentially mineable
Measured and Indicated category gold ounces have increased by 129% and the
potentially mineable Inferred category gold ounces have increased by 89%. The
potentially mineable portions of the gold resources determined by the updated
PEA were derived by applying preliminary economic criteria to the resource
estimates of the Komis, EP, Tower East, Birch Crossing, and Bingo deposits. An
independent initial resource estimate of the Komis open pit resource was
prepared by A.C.A. Howe International Limited (announced on April 6, 2005),
while the Bingo underground, and the EP, Tower East, and Birch Crossing open
pit resource estimates were prepared by GeoSim Services Inc. (announced on
June 29, 2006, April 11 2007, April 6, 2006, and December 17, 2007
respectively). Internal updates of the gold resource estimates at Tower East
and Bingo were conducted by Golden Band (announced in press releases on
December 3, 2007 and January 8, 2008 respectively).
    The potentially mineable portion of the open-pit gold resources at Komis,
EP, Birch Crossing, and Tower East were determined by P&E via Whittle 4X pit
optimizations and subsequent preliminary designs. The Bingo underground
potentially mineable portion of the resource was determined by P&E subsequent
to a preliminary development and stoping design based on long-hole sublevel
stoping instead of shrinkage stoping as used in the June 2007 PEA study.
    The following operational gold cut-off grades were established in the
updated PEA depending on the size and nature of the operation (Table 3). These
operational cut-off grades differ marginally from the design cut-off grades
applied in the initial resource definition.

    
                Table 3: Updated PEA Base Case Mining Factors
    -------------------------------------------------------------------------
                                                                      Birch
                        Mine:   Bingo  Komis       EP    Tower East Crossing
                                 U/G  Open Pit  Open Pit  Open Pit  Open Pit
    -------------------------------------------------------------------------
    Mining Rate
     (ore & waste)       tpd      350    7,500     7,500     5,000     7,440
    -------------------------------------------------------------------------
    Milling Rate         tpd      350      350       700       600       400
    -------------------------------------------------------------------------
    Waste / Ore Ratio                   11.5:1    14.5:1     3.1:1    16.6:1
    -------------------------------------------------------------------------
    Mining Cost          $/t  $106.60    $2.93     $2.93     $3.03     $2.76
    -------------------------------------------------------------------------
    Ore Transportation
     to Mill Cost        $/t    $6.12    $9.00     $9.00     $4.00     $3.40
    -------------------------------------------------------------------------
    Milling Cost         $/t   $31.90   $31.90    $31.90    $23.20    $23.20
    -------------------------------------------------------------------------
    Overheads            $/t    $3.80    $3.80     $3.80     $2.80     $2.80
    -------------------------------------------------------------------------
    Gold Price        US$/oz     $680     $680      $680      $609      $609
    -------------------------------------------------------------------------
    Recovery               %       95%      95%       95%       95%       95%
    -------------------------------------------------------------------------
    US$:C$ Exchange Rate         0.91     0.91      0.91      0.91      0.91
    -------------------------------------------------------------------------
    Gold Cut-Off
     Grade            g/t Au      6.5      3.9       4.5       2.1       4.5
    -------------------------------------------------------------------------
    Marginal Gold
     Cut-Off Grade    g/t Au     1.83     1.95      1.95      1.46      1.43
    -------------------------------------------------------------------------

    Based on the design cut-off grades, P&E calculated the following mineable
portions of the gold resource estimates by classification into measured,
indicated, and inferred categories (Table 4).

        Table 4: Potentially Mineable Portion by Classification of Gold
                             Resource Estimates
    -------------------------------------------------------------------------
    Deposit            Classification    Tonnes   Gold (g/t)    Gold (ounces)
    -------------------------------------------------------------------------
    Bingo                   Indicated    85,000       15.02           41,000
                       ------------------------------------------------------
                             Inferred   105,000       15.63           52,800
    -------------------------------------------------------------------------
    Komis                    Measured    53,000        4.35            7,400
                       ------------------------------------------------------
                            Indicated   563,000        4.34           78,600
                       ------------------------------------------------------
                           Measured &
                            Indicated   617,000        4.34           86,000
                       ------------------------------------------------------
                             Inferred    16,000        3.33            1,700
    -------------------------------------------------------------------------
    EP                      Indicated    25,000        6.69            5,400
                       ------------------------------------------------------
                             Inferred    13,000        6.81            2,800
    -------------------------------------------------------------------------
    Tower East               Measured   314,000        2.47           24,900
                       ------------------------------------------------------
                            Indicated   663,000        2.87           61,200
                       ------------------------------------------------------
                           Measured &
                            Indicated   977,000        2.74           86,200
    -------------------------------------------------------------------------
    Birch Crossing           Inferred   282,000        4.82           43,700
    -------------------------------------------------------------------------
    Total                    Measured   367,000        2.74           32,300
                       ------------------------------------------------------
                            Indicated 1,336,000        4.34          186,200
                       ------------------------------------------------------
                           Measured &
                            Indicated 1,703,000        3.99          218,600
                       ------------------------------------------------------
                             Inferred   416,000        7.55          101,000
    -------------------------------------------------------------------------
    

    1) Mineral resources, which are not mineral reserves, do not have
demonstrated economic viability. Environmental, permitting, legal, title,
taxation, socio-political, marketing, or other relevant issues may materially
affect the estimate of mineral resources.
    2) The reader is cautioned that inferred mineral resources are considered
too speculative geologically to have the economic considerations applied to
them that would enable them to be categorized as mineral reserves, and there
is no certainty that any value from such resources will be realized either in
whole or in part.

    The mineral resources in this press release were estimated using the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on
Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM
Standing Committee on Reserve Definitions and adopted by CIM Council, December
11, 2005.

    Conceptual Geological Resource Potential

    The bases for the updated PEA are NI 43-101-compliant resource estimates
incorporating grade capping during block modelling due to the high nugget
effect in the evaluated deposits. Golden Band is optimistic that further
resource exploration, definition, and development work may confirm higher
average grades and tonnages for the resources, particularly at Bingo and Birch
Crossing. Recent drilling at the Bingo deposit has already confirmed higher
gold grades and increased resources (see news release of January 8, 2008);
this information has been incorporated in the current updated PEA.
    Golden Band intends to continue to examine the extent of high-grade gold
portions in the deposits under review through continued drilling and
underground exploration work in 2008. Most notably, the geological upside
potential at depth at Bingo will be further drill-tested, possibly from
underground drill stations as part of the underground exploration project that
is currently underway (see news release of January 15, 2008).
    Apart from increased potential gold resources at Bingo and Birch Crossing
(see news releases of January 8, 15, and 21, 2008), Golden Band has a number
of other targets in the area that may potentially provide additional or
supplementary mill feed for the Jolu gold mill, either during or subsequent to
the currently planned eight-year project life. These deposits are subject to
ongoing exploration and development work with the objective of extending the
overall production life of the mining and milling operations beyond eight
years. The potential for toll milling of non-owned gold resources at the Jolu
mill could also be considered.

    Mining

    Open pit mining of the Komis, EP, Tower East, and Birch Crossing gold
deposits is planned by applying conventional drill and blast techniques,
excavators, front end loaders, and haulage fleets of up to three 54-tonne
off-highway rear-dump trucks per site. The major open pit mining equipment
will be leased or rented. In the updated PEA, the Bingo gold deposit is
evaluated using long-hole sublevel open stope mining with development on ore,
and ore extraction with small load-haul-dump machinery (LHDs) and trucks
through a decline access. Mining at Bingo is planned in the updated PEA as a
contract mining operation, while mining of the open pit mines is planned as
owner-operated.

    Ore Transportation

    The Jolu gold mill and tailings management facility are centrally located
75 kilometres by provincial highway southwest of the Komis/EP deposits, 51
kilometres northeast by highway of the Bingo deposit, and approximately 28 and
33 km south of the Birch Crossing and Tower East deposits, respectively.
Access to the Birch Crossing and Tower East deposits will require the
construction of a 32-kilometre all-season private haul road between the Jolu
mill site and those mine sites.

    Processing

    As part of the development plans, the existing 500 tpd Jolu gold mill
will be refurbished and upgraded to process up to 700 tpd for the initial 3.75
years of operations. In year four, a further expansion of the mill's capacity
to 1,000 tpd is planned, resulting in significantly lower operating costs. The
mill's process flow sheet uses conventional crushing, grinding, gravity
separation, and cyanide leaching with carbon in pulp to produce doré gold.
Process improvements in the updated PEA include upgrades in the gravity
circuit by installing an intensive leach reactor, upgrades in water and
effluent treatment, and upgrades to plant process control and instrumentation.
Further upgrades of the mill's systems, including capacity expansions in the
grinding and leaching circuit, will be required to expand the mill to a 1,000
tpd capacity. The Jolu mill site will also benefit from the installation of a
power line and transformer station connecting to the SaskPower grid.

    Conclusions and Recommendations

    P&E considers that Golden Band's expanded La Ronge Gold Project operating
plan, based on potentially mineable resources from the Komis, EP, Tower East,
Birch Crossing, and Bingo gold deposits, and using the Jolu mill, has a
realistic potential for economic viability. Assuming the project can be
brought into production by early 2009, the possibility for significantly
higher economic returns above the base case scenario exists if current high
gold prices continue, particularly during the first two years of the project.
    Golden Band interprets the results of the updated and expanded PEA as a
very positive step in its strategy to bring the La Ronge Gold Project to an
early production start so as to benefit from the current high gold prices.
    Golden Band believes the project viability has a low sensitivity to
changes in the current price of gold. Only a significant reduction in the
current price of gold could render the project unviable. The Internal Rate of
Return is highly sensitive to changes in the price of gold, and only
moderately sensitive to changes in operating and capital costs. Due to the
complex nature of the project with operations in multiple sites, strict cost
management and low-cost approaches are recommended by P&E.
    P&E has made several other recommendations in the updated and expanded
PEA. Golden Band should develop its La Ronge Gold Project according to the
mine production plan and schedule in the PEA, subsequent to confirmation with
a pre-feasibility or feasibility study. Continued exploration programs should
maintain the focus on expanding the existing resources such as the high-grade
gold potentials of the Bingo and Birch Crossing gold deposits. Exploration in
areas within the existing or planned transportation routes such as the
Jolu-Tower East haulage corridor is highly recommended. P&E also recommends
focusing on low-cost operating strategies such as owner-operated mining
operations versus contractor mining.
    "Golden Band is highly encouraged with this updated and expanded PEA and
we will carry out the recommendations of the report by establishing the
necessary timelines and steps required to complete all of the technical,
financial, and permitting-related requirements", stated Rodney Orr. "In
keeping with our mission statement to maximize shareholder value through safe,
responsible, innovative exploration and mining, Golden Band intends to become
Saskatchewan's next gold producer in the shortest possible period of time, by
'doing it right!'."
    Eugene Puritch, P.Eng., Alfred Hayden, P.Eng., Malcolm Buck, P.Eng., and
Alexander Partsch, P.Eng. of P&E Mining Consultants Inc.; Ronald G. Simpson,
P.Geo., principal of Geosim Services Ltd.; Stan Kotowski, P.Eng. and Bruce
Ferguson, P.Eng. of Wardrop Engineering Inc.; and Wayne Clifton, P.Eng. of
Clifton Associates Ltd. are independent "Qualified Persons" responsible for
the PEA. Mr. Puritch has reviewed and approved the contents of this press
release.
    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, who
serves as the Company's Qualified Person (QP) under the definitions of
National Instrument 43-101. Frank Hrdy, P.Geo., Golden Band's VP Exploration
who serves as the Qualified Person (QP) for Golden Band under the definitions
of National Instrument 43-101 is responsible for the updates of the resource
estimates for the Bingo and Tower East deposits.

    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 ten
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
to becoming a sustainable gold producer. The Company is aggressively pursuing
its near-term goal for the development and production of its 100%-owned Bingo,
Komis, and EP deposits with processing at the 100%-owned Jolu mill.
Longer-term objectives include production from the Company's other deposits
and 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

    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.
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, 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 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.

    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, Fax: (306) 955-0788, Email:
rodney.orr@goldenbandresources.com, www.goldenbandresources.com; Investor
Relations: Motivia Communications, Roger Francis, (306) 242-0694, Toll free:
1-866-501-5651, Email: info@goldenbandresources.com

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