Golden Band Resources: Strong Financial Upside Seen for La Ronge Gold Project

    GBN: TSX Venture Exchange

    SASKATOON, Jan. 26 /CNW/ - Golden Band Resources Inc. (Golden Band or the
Company; GBN: TSX-V) is pleased to provide a financial outlook for the La
Ronge Gold project based on the two development scenarios described in the
Company's positive Pre-Feasibility Study (PFS; see news release of January 20,
2009) and in the Updated and Expanded Preliminary Economic Assessment (PEA;
see news release of February 26, 2008).
    The four-years of gold production described in the January 2009 PFS
included only Proven and Probable Mineral Reserves from three of the Company's
12 deposits, and does not include any Inferred Resources for those three
properties, as per the requirements of National Instrument 43-101 for
prefeasibility-stage reporting. The Company's PEA was able to include NI
43-101 Measured and Indicated Resources and Inferred Mineral Resources from
five of the Company's 12 deposits, indicating the case where an eight-year
project can be sustained.
    To demonstrate the upside financial potential for the La Ronge Gold
Project, using the January 23rd, 2009 NYMEX closing gold price of
US$895.30/ounce gold and the dollar exchange rate of 0.81 in the economic
evaluations using the other parameters in the PFS and the Updated PEA, the IRR
moves up strongly to 51.8% (from 24.9%) and to 114% (from 20.6%) for the PFS
and the PEA, respectively; with equally robust increases in the other
financial indicators (Table 1).

                 Table 1: Comparison of Financial Evaluations
      Using Current Price of Gold and Exchange Rate at January 23, 2009
                 Golden Band Resources: La Ronge Gold Project

                                     January 2009 PFS       April 2008 PEA
                                    (Four Year Project)  (Eight Year Project)
                                       After Taxes &       Before Taxes and
                                       Depreciation          Depreciation
    Gold Price             US$/ounce     $895.30                $895.30
    Exchange Rate             US$:C$      0.8105                 0.8105
    Internal Rate of Return (IRR)          51.8%                 114.2%
    Net Present Value (NPV) @
     7% discount rate                   $19,813,000           $96,686,000
    Cash Flow (non-discounted)          $27,768,000          $140,174,000
    Payback                               1.0 year              0.8 year
      PFS includes only NI 43-101 Reserve Category gold.
      PEA includes NI 43-101 Measured + Indicated and Inferred category gold.
      All currency amounts are in Canadian dollars except as otherwise

    The Company's total NI 43-101 gold reserves and resources currently
defined are:

    Measured + Indicated Resources for Komis, Tower East, Golden Heart,
Memorial, EP, Birch Crossing(*), Greywacke(*), and Bingo deposits: 11,128,200 t @
2.27 g/t Au = 811,138 ounces.

    Inferred Resources for Komis, Tower East, Golden Heart, Memorial, EP,
Birch Crossing(*), Greywacke(*), and Bingo deposits: 2,292,539 t @ 2.81 g/t Au =
206,940 ounces.

    Proven and Probable Reserves for Bingo, Komis and EP deposits: 762,000 t
@ 6.22 g/t Au = 152,300 ounces. Based on 93% recoveries in the base case PFS
production scenario = 141,400 total recovered ounces.

    Remaining Measured + Indicated Resources (reserves are deducted):
10,366,200 t @ 1.99 g/t Au = 662,638 ounces.

    Remaining Inferred Resources (reserves are deducted): 2,292,539 tonnes @
2.81 g/t Au = 206,940 ounces.

    (*) Resource updates based on new results are pending.

    There are no reportable resources or reserves for four other deposits the
Company has.
    Rodney Orr, Golden Band's President and CEO stated, "The pre-feasibility
and scoping studies both provided a solid basis by establishing a strong
positive financial evaluation using the conservative business case for the La
Ronge Gold Project -- but clearly those engineering studies do not tell nearly
the whole story. Golden Band's outlook for longer-term production is based not
only on the 12 deposits we already have but also on the strong potential to
both increase those known resources and to also make new discoveries. With the
demonstrated financial upside potential to our base case analyses suggested
using the current gold prices and exchange rates that see the IRR rise to 114%
for an eight-year base-case project, we believe the La Ronge Gold Project has
excellent potential to position Golden Band Resources as a long-term gold
producer with the scenario seen by many market analysts that the price of gold
will continue to rise."
    Gary Haywood, Golden Band's Vice President Operations and COO stated,
"The objective of our ongoing development work will be to continue to convert
resource ounces into reserves in order to maintain a production rate of at
least 70,000 ounces per year. The first year of production in the PFS meets
this objective, so it will be our intent to increase the Bingo mine life from
one year of mine life based on the gold reserve by converting additional
resources to reserves. We will also continue to develop other potential
high-grade mill feed sources to maintain the stated objective of 70,000 ounces
per year as a minimum level of production for the La Ronge Gold Project."

    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 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 Pre-Feasibility Study (see news release of January
20, 2009). 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:,; Investor
Relations: motivia communications, Roger Francis, (306) 242-0694, Toll free:
1-866-501-5651, Email:

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