Golden Band Resources Inc.
TSX VENTURE : GBN

Golden Band Resources Inc.

December 12, 2006 17:08 ET

Golden Band Resources Announces Private Placements

SASKATOON, SASKATCHEWAN--(CCNMatthews - Dec. 12, 2006) - Golden Band Resources Inc. (TSX VENTURE:GBN) (the "Company") announced today that it will conduct a non-brokered flow-through private placement of up to 6,250,000 of its common shares at a price of $0.48 per share for gross proceeds of up to $3,000,000. The gross proceeds of the sale of the flow-through shares will be used to fund exploration work on the Company's La Ronge Project for an anticipated underground program at Bingo, winter drilling, and for general working capital.

The Company will also conduct a non flow-through private placement of up to $500,000 through the offer of up to 1,200,000 units at a price of $0.45 per unit; each unit consisting of one common share and one half common share purchase warrant. Two warrants will entitle the holder to purchase one common share for a period of 2 years at a price of $0.65 from the date of issuance. Commencing on the date that is four months and one day after the closing date, if the closing price of the Company's common shares on the TSX Venture Exchange, or any other stock exchange on which the Company's common shares are then listed, is at a price equal to or greater than $0.90 for a period of 15 consecutive trading days, the Company will have the right to accelerate the expiry date of the warrants by giving written notice to the holders of the warrants that the warrants will expire on the date that is not less than 30 days from the date notice is provided by the Company to the warrant holders. The gross proceeds of the sale of the units will be used for general working capital.

Golden Band will pay a cash fee of up to 7% of the gross proceeds raised by a finder related to these private placements.

Certain directors and officers are expected to participate in the private placements on the terms set forth above and such participation has been approved by the independent directors of the Company. The Company is relying upon an exemption from the related party requirements of OSC Rule 61-501. The placements are expected to close on or before December 31, 2006.

These financings are subject to the normal regulatory approval of the TSX Venture Exchange. The securities offered hereby will be subject to a four-month plus one-day hold period from the closing date in accordance with applicable securities laws.

On behalf of the Board of Directors,

Ronald K. Netolitzky, President and CEO

All of Golden Band's exploration programs and pertinent disclosure of a technical or scientific nature are prepared and/or designed and carried out under the supervision of Ron Avery, P.Geo., Golden Band's Exploration Manager, who serves as the qualified person (QP) under the definitions of National Instrument 43-101.

Forward-Looking Information: Certain information contained in this document, including any information as to our future financial or operating performance, constitutes "forward-looking statements". The Company may, from time to time, also make oral forward-looking statements. All statements other than statements of historical fact are forward-looking statements. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Many factors may affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this document are qualified by these cautionary statements. We disclaim any intention or obligation to update or revise any oral or written forward-looking statements whether as a result of new information, future events, or otherwise.


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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