Golden Band Resources Arranges Non-Dilutive $3 Million Exploration Funding

    GBN: TSX Venture Exchange

    SASKATOON, Aug. 6 /CNW/ - Golden Band Resources Inc. (GBN: TSXV) (the
"Company") announced today that it has entered into an Option Agreement with
Santoy Resources Ltd. ("Santoy") whereby Santoy will expend $3,000,000 on
several of the Company's more-advanced projects in the La Ronge Gold Belt of
northern Saskatchewan. The work, which will consist largely of diamond
drilling, will start immediately.
    Rodney Orr, Golden Band's President, noted, "We are particularly excited
about Santoy's participation and their aggressive drilling focus to add
tonnage to several of our best deposits and advanced targets. We consider the
exploration potential of these deposits, all of which are open along strike
and at depth, to be excellent. Santoy's management, including our Chairman,
Ron Netolitzky, has a long history of exploration in this gold camp and we
look forward to their technical contributions. This financial involvement will
allow for Golden Band to direct a higher percentage of its treasury toward
development engineering and rehabilitation of the Jolu mill in preparation for
the start of production. Furthermore, we are very pleased to have the
opportunity to have Santoy take on this exploration at a time when Golden Band
is undoubtedly undervalued in what is a very difficult and volatile capital
market. For Golden Band to carry out this significant level of exploration
through an equity financing at this time would be very dilutive for our
shareholders - but to not make the most of our Company's very significant
exploration and development potential is clearly not in anyone's best

    Bingo Deposit Exploration

    Plans call for up to 4,000 metres at the Bingo gold deposit. Bingo, 55 km
south of the Company's Jolu mill, has recently been explored on two levels
with 1,100 metres of underground development from a decline on two sub-levels.
Bingo is a shear and quartz vein hosted gold occurrence, typically yielding
grades on the order of 10 to 14 g/t gold over widths of up to several metres.
    A December 2007 in-house resource estimation, utilizing a cut-off of 
5 g/t gold, indicated 97,000 tonnes grading 14.11 g/t gold of measured and
indicated, and 136,500 tonnes grading 14.03 g/t gold of inferred resources
(see news releases of January 8 and July 21, 2008). A 102-hole underground
drilling program totalling 1,135 metres has also recently been completed.
Overall, the deposit has now been investigated over a strike length of
450 metres and to an average depth of 200 metres. An updated NI 43-101
compliant resource will be completed once the remaining underground program's
assay data is completed. This new drilling program, which will be conducted
from surface, will be targeted at expanding the known resources to the north,
south, and to depth in the high-grade Bingo deposit, and to convert deeper
inferred gold resources to the indicated category so this resource can be used
to estimate a reserve.

    Alimak/Decade Mine Area Exploration

    The second primary target will be the former producing Decade gold mine,
only 275 metres from the Company's Jolu mill and 600 metres from the former
Jolu mine. In the Jolu/Decade mines area, a 2,000 to 3,000-metre drill program
is designed to define the near-surface gold mineralization with near-term
development potential.
    The Decade area was discovered in 1944 and was the object of limited
underground mining operations in the 1970s and 1990s. The deepest portion of
the existing development is approximately 50 metres below surface. Portions
were drill tested in the 1990s to about 100 to 150 metres below surface. In
addition to small-scale gold production (40 tonnes per day) in the 1970s, ore
from the Decade mine was milled with production from the Jolu mine in 1990 to
    During the past winter, Golden Band completed 19 diamond-drillholes at
Decade, totalling 1,321 metres, to test the shallow portions (now referred to
as the Roberts and North zones) and to explore along strike just north of the
former Decade mine workings (see Golden Band news releases of February 7 and
March 11, 2008). Historical drillhole values of up to 28.5 g/t gold over 6.9 m
downhole (interpreted true width of 3.0 m) and 39.0 g/t gold over 4.4 m
downhole (interpreted true width of 2.2 m) are reported on Decade mine cross-
and longitudinal sections. The mineralization here is known to host
bonanza-style gold grades that are both complex and exhibit a nugget effect.
    Golden Band was encouraged by these initial results from the Roberts
zone, by the potential demonstrated by the extension of the Decade zone, and
with the discovery of the North zone. All indicate possible higher-grade,
near-surface, gold resources that could be available for near-term production
as part of the Company's plans to restart gold production using its Jolu mill
(see news release of February 26, 2008).
    The Company's historical files for the area also note the existence of
the high-grade Alimak Zone plunging to the west adjacent to the existing
underground workings at the former Jolu mine. This zone was identified during
operations of the former Jolu Gold Mine as a reserve and was partially mined
from underground. The known mineralization extends from surface to 125 metres
deep and the mining records note underground grab samples of up to one ounce
per ton gold. This new drilling program will include step-out drilling to test
for the existence of gold mineralization along the projected strike to the
southwest and northeast, and along the projected plunge of the Alimak Zone
where a previous property boundary precluded drill testing of this area. Drill
spacings will be such that an updated resource can be defined. With the
Company's plans to restart gold production at the Jolu mill in 2009, an
open-pittable resource only metres from the mill is a very attractive target.

    RKN/Golden Heart Area Exploration

    The third target area will be the newly discovered, near-surface RKN
Zone, adjacent to the Golden Heart deposit, some 75 km northeast of the Jolu
mill along Highway 102. During this past winter, two discovery holes
intersected 156.6 g/t gold over 2.74 metres and 5.18 g/t gold over 8.4 metres
(refer to news release of June 26, 2008). The RKN Zone's proximity to the open
pittable Golden Heart gold deposit (measured and indicated resource of
259,900 ounces of gold) makes this target particularly attractive. The planned
drill program is to determine the orientation and continuation of the gold
mineralization discovered this past winter. With the availability of a drill
in the Golden Heart deposit area, the Company will also consider in-fill
drilling of near-surface mineralization with the objective of defining
resources for near-term development. A total of 3,000 metres are initially
planned for these two targets.
    With the expenditure of the $3 million, Santoy will earn an 8.0% equity
interest in the Bingo, Alimak/Decade and RKN properties, and possibly others
that the Management Committee may approve. Upon exercise of the option, a
joint venture is to be formed. Golden Band has the exclusive right to buy-back
all of Santoy's interest over a sliding scale: April 1 to June 30, 2009: 
$3.5 million; July 1 to December 31, 2009: $3.75 million; and up to the
announcement of commencement of Commercial Production: $4.0 million. The
initial $3 million may be repaid at Golden Band's election in either cash or
shares. If Santoy still retains its interest after the start of commercial
production, it shall receive 5% of the income from production to a maximum of
$3 million and thereafter 2.5% of the income from production. If the repayment
were in shares, the share price would be calculated as the volume-weighted
average of the 20 trading days prior to the day of the election. A
two-kilometre Area of Interest shall apply exclusively to Santoy during both
the Option and the Joint Venture Agreements. The arrangement is subject to
approval of the TSX Venture Exchange.
    Santoy will be the initial operator of the program. Santoy will enter
into drill contracts with Newmac Industries Ltd for an initial 10,000 metres,
and drilling is expected to commence next week.
    As the Company and Santoy have two common directors, this agreement has
been reviewed and approved by independent Board committees of each company.
The agreement is subject to regulatory approval.

    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 - a project
that received a positive expanded Preliminary Economic Assessment (scoping
study) on February 26, 2008 (filed on SEDAR on April 10, 2008). 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

    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 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 x7123, Fax: (306) 955-0788, Email:; Motivia Communications: Roger Francis,
(306) 242-0694 x5, Toll free: 1-866-501-5651, Email:

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