GBS Gold International Inc.
TSX : GBS

GBS Gold International Inc.

April 22, 2008 17:59 ET

GBS Gold Re-Prices Warrants Expiring September 30, 2008 to $1.47 Per Share

TORONTO, ONTARIO--(Marketwire - April 22, 2008) - GBS Gold International Inc. (TSX:GBS) ("GBS Gold" or the "Company"), announces a re-pricing of previously issued share purchase warrants.

On March 30, 2007, GBS Gold issued 6,210,000 share purchase warrants exercisable at $3.75 per share which expire September 30, 2008. The exercise price has been reduced to $1.47 per share effective May 6, 2008 for a period of 30 days ending June 4, 2008. If the warrants are not exercised during this time frame, the exercise price will revert to $3.75 per share.

None of the warrants subject to re-pricing are held by insiders of the Company.

About GBS Gold International Inc.

GBS Gold is an emerging gold producer with 2.4Moz of Indicated Resources and 1.6Moz of Inferred Resources of gold at its Union Reefs Operations Centre located in historically productive goldfields in the Northern Territory of Australia. GBS Gold produces gold through its modern dual-mill 2.5Mtpa Union Reefs processing plant. The Company expects to commence production at its Tom's Gully and Cosmo Deeps free-milling projects in 2008-10 to increase production to an annualized rate of up to 250,000 ounces and to construct a GEOCOAT® circuit, a heaped bio-oxidation process, at the Union Reefs plant to treat refractory ores and further increase gold production from the Union Reefs Operations Centre to 300,000 ounces per year. The Union Reefs plant is adjacent to the main Stuart Highway and the trans-continental Adelaide-Darwin railway line, and is on the Northern Territory power grid. Within 125km trucking distance of the Union Reefs plant, GBS Gold has consolidated over 3,500km2 of prospective tenements and gold deposits and also holds gold exploration properties in Western Australia and Canada. GBS Gold trades on the Toronto Stock Exchange under the symbol "GBS".

The Company's mineral resources comprise indicated resources of 22.8 million tonnes at 3.3g/t for 2.4 million ounces of contained gold and inferred resources of 20.3 million tonnes at 2.5g/t for 1.6 million ounces of contained gold. The Company will shortly file a technical report for the updated resource estimate for its non-Tom's Gully properties and the feasibility study and reserve estimate for its Cosmo Deeps project. The Company has filed two technical reports on the Tom's Gully project being a technical report entitled "Form 43-101 Technical Report on the Tom's Gully Project" dated and filed on January 14, 2008 and a technical report entitled "Technical Report on the Mineral Reserves of the Tom's Gully Gold Mine" dated December 2007 and filed on January 31, 2008. The Company has completed a feasibility study on the Tom's Gully Project and declared a probable mineral reserve estimate of 740,000 tonnes at 7.1g/t for 170,000 ounces of contained gold (refer the news release dated December 18, 2007). Other than the feasibility studies completed on the Tom's Gully and Cosmo Deeps projects, the Company has not completed a feasibility study and there is no certainty that its projects will be economically successful. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Any potential updates to GBS Gold's mineral resources discussed in this news release are conceptual in nature and subject to further drilling, analytical and test work and/or data verification. All estimates of updates to mineral resources are based on the drilling results and resource modeling described herein.

Certain disclosures in this release, including management's assessment of GBS Gold's plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to GBS Gold's operation as a mineral development company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: fluctuations in gold prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; general market conditions; the uncertainty of future profitability; and the uncertainty of access to additional capital. Full descriptions of these risks can be found in the Company's Annual Information Form available on the SEDAR website, www.sedar.com. Readers are cautioned not to place undue reliance on forward-looking statements. GBS Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

The TSX does not accept responsibility for the adequacy or accuracy of the information contained herein.

Contact Information

  • In Toronto, Canada:
    GBS Gold International Inc.
    Ted Mayers
    Executive Vice President, Business Development
    (416) 777-1508
    or
    In Perth, Australia:
    GBS Gold International Inc.
    Peter Kerr, Chief Financial Officer
    +61 8 9492 2500
    Email: gbs@gbsgold.ca
    Website: www.gbsgold.com