Great Basin Gold's Hollister Mine Initiates Production

VANCOUVER, BC - Great Basin Gold Ltd. reported the milling results of production at the Company's Hollister Mine in Nevada.
Processing of the ore was completed in May 2008 at Newmont's Midas mill, located 20 miles from Hollister. Approximately 5,000 tons of ore with a gold head grade of 1.2 ounces per ton and a silver head grade of 9.5 ounces per ton realized net revenue of $3.9 million after toll treatment costs of $45 per dry ton and a recoupment of capital amortization cost by Newmont. The Midas mill uses direct cyanidation, counter-current decantation and a Merrill Crowe recovery system.
A second stockpile of approximately 5,000 tons of ore is being shipped to the Midas mill.
The construction of a regulatory-required Alimak raise to the surface in the first quarter and commissioning of the escape-way in May 2008, allowed underground production to commence with stoping on the Gwenivere and Clementine veins. The Alimak raise was excavated from the 5200 level to the surface for a length of 540 feet. The raise is being used as a secondary egress and ventilation exhaust, allowing mine production to commence on schedule in May 2008.
Stoping progress on the Gwenivere vein includes cut and fill stoping as well as shrinkage stoping. Clementine stopes are making use of cut and fill methods. Reinforced concrete pillars are constructed prior to commencement of stoping. The pillars will allow for the optimal recovery of high-grade ore. The planned underground backfill system has been commissioned and a first fill has been successfully completed on a Gwenivere vein cut and fill stope.
President and CEO Ferdi Dippenaar said: "The metallurgical results of the batch processing of the underground tonnage at the Midas mill were much in line with expectations. A better indication of recoveries is expected with the processing of the second batch. The finalization of a long term toll treatment agreement remains high on our list of priorities which we plan to conclude and good progress is being made. As in the case of developing mines the head grades at Hollister are expected to vary during the build-up phase, but current results continue to confirm the prospective nature of this ore body. We are also pleased with the completion of the first phase of the underground development program, within budget, on schedule and without major safety incidents".
The company's address is 1108 - 1030 West Georgia Street, Vancouver BC V6E 2Y3.