Great Basin Gold Has 100% Increase In Revenue 

VANCOUVER - Great Basin Gold Ltd. reported that the Hollister operations in Nevada recorded $49 million in revenue during the quarter on record sales of 34,522 Au eqv1 oz, an increase of 100% quarter on quarter. During the continuing construction and installation of the acid wash and carbon regeneration system at the Esmeralda Mill, loaded carbon is sent to the refiner as opposed to dore. Improved refining terms resulted in a decrease of approximately 5,000 Au eqv oz in inventory held at the refiner from Q1 2011. The Esmeralda Mill treated 22,237 tonnes during the quarter with a marked improvement in Au and Ag recoveries of 95% and 75%. Cash production costs for the quarter is expected to improve a further 8% quarter on quarter to approximately $611 per Au eqv oz in Q2 2011.

Underground exploration and stope delineation drilling continued during the quarter, with a record footage of 45,000 feet or 13,636 meters completed from 84 boreholes. The focus has been on completing phases of drilling on the Blanket Zone and south east Gwenivere targets, providing further data for incorporation in the upcoming mineral resource update. The stope delineation drilling has continued to tighten up controls for short interval trial stope planning. Surface exploration has continued collating geological and geophysical data as well as reviewing surface expressions of interpretations with structural and geological observations. Operational efficiencies at Burnstone improved significantly with mechanized ore development increasing by 33% quarter on quarter to 1,550 meters in addition to 1,872 meters of waste development completed during the quarter. The increase in ore development allowed for an increase of 36% in the square meters stoped quarter on quarter. Despite the relatively close drill spacing in the current mining area, the exact position and orientation of geological faults could not be identified earlier as most of these are of a graben nature. Additional infill and delineation drilling as well as extensive mapping and interpretation of the structural information from the over 10 kilometers of underground development, now provides management with more detailed data to incorporate these faulting into the mine plan. An additional 66% waste development was completed during the 6 months ended June 30, 2011 in response to the geological faulting encountered compared with the original planned meters. Progress has been made with long hole stoping as the mining method, with the efficiency of the teams improving on a monthly basis. The improved hanging and footwall conditions experienced in the C block allowed for a significant improvement in decreasing the stoping width which was measured as low as 67 cm in some stopes. This also had a positive impact on the mining grade of stope material which improved 60% from Q1 2011. The Metallurgical Plant is performing in line with expectation with approximately 202,660 tonnes processed during the quarter. Tonnes processed however remain predominantly from development ore which includes more dilution than stoped material and negatively impacts on the mill head grade. Recoveries for the quarter improved to 85% (Q1 2011:83%) although still impacted by the low head grade ore delivered to the mill. Recoveries are expected to improve to the planned 95% as the head grade increases. The impact of the lower head grade is reflected in the 5,619 Au ounces sold as well as the cash production cost per ounce of approximately $1,450 expected for the quarter. During the build-up phase a more accurate measurement is cost per tonne which improved 12% to approximately $60 (ZAR420) per tonne for the quarter. Corporate Ferdi Dippenaar, President and CEO, said, Although experiencing the usual challenges with bringing a new mine into production, Burnstone is settling into a production rhythm and although the progress made by the team on a monthly basis is reassuring, it is not yet at planned levels. The need for additional waste development to access the mining blocks impacted negatively on ore development which in turn impacts on stopes available for mining. Production for the remainder of the year will unfortunately be impacted by this approximate 3 month delay in ore development and we expect to recover between 50,000 to 60,000 Au oz for the second half of the year and an estimated 60,000 to 70,000 ounces for the 12 month period. The Nevada operations showed improvements in a number of areas during the quarter, notably in ounces extracted through trial mining as well as the improved recoveries at our Esmeralda Mill. The latter improvement is especially pleasing with the impact already evident in the reduced cash costs and the increased ounces delivered to the refinery. The current performance from our Nevada operations and the standby debt facility provides the Company with adequate cash resources to fund the delayed production build-up at Burnstone. Our short to medium term focus at both of these operations remains to increase production, manage costs and unlock the intrinsic value of these quality projects. The company's address is 1108- 1030 West Georgia Street, Vancouver BC V6E 2Y3.