GoldSands Development Company
OTC Bulletin Board : GSDC
OTCQB : GSDC

July 19, 2011 16:31 ET

GoldSands Reports Results of Mika 2 Test Production

LIMA, PERU--(Marketwire - July 19, 2011) - GoldSands Development Company (OTCBB:GSDC) (OTCQB:GSDC), is pleased to announce completion of the initial test mining program on our Mika 2 mining concession in Peru.

Our final results from the current Mika 2 test gold production program conducted with Swiss Mining S.A., for the period March 28th to July 10th are as follows:

Gravel mined: 7920 m3 (10,359 cubic yards)

Raw gold produced: 2445 grams (2.445 kg) (78.6 troy oz.)

Raw gold grade: 309 mg/m3 (4.76 grains/cubic yard)

Raw gold value: US$ 15.40/m3 ($11.77cubic yard at $1550/oz gold.)

These grades are consistently higher than predicted by our 2009 – 2010 Phase I and II drill-hole program results from Mika 2.

About GoldSands Development Company

The Company's goal is to fully develop our Peruvian GoldSands project. The Company's GoldSands project in Peru consists of options on 461 square kilometers (178 square miles) of mining property, the largest such block in the district. For thousands of years, the waters of the Santiago and the Marañón rivers have been carving their way through the gold-rich mountain canyons of the Andes, carrying off gold and depositing it, as the river comes out into the plain, in the loose gravels and sands - GoldSands - in the area the Company now controls.

Results from test holes drilled during GSDC's exploratory drill program indicated the presence of alluvial gold in economical quantities. While the Company considers results from the drill programs and recently completed test mining production to be favorable, the Company cautions that these results do not indicate the presence of a commercially viable mineral deposit over most of the optioned area and an extensive amount of further exploration is needed to determine the full feasibility of the project. The Company can provide no assurance that its Peruvian GoldSands project will contain an economically viable mineral deposit.

The Company also completed a social baseline study involving a series of meetings with local residents and other stakeholders in the region. We intend to work in an equitable, transparent, and socially responsible manner with local communities, suppliers and employees. We will act as stewards of the local and regional ecological systems, behaving in an environmentally responsible way, leaving a minimal "footprint" as a result of our operations. Our company is working towards building trust and sustaining relationships that go well beyond mining operations.

The full implementation of these programs will require the Company to secure additional financing.

Further information about GoldSands Development Company may be found at: www.goldsandsco.com.

On behalf of the Board:

Dr. Michael Stocker - CEO

GoldSands Development Company

Disclaimer

This release contains forward-looking statements that are based on beliefs of GoldSands Development Company management and reflect GoldSands Development Company's current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities and Exchange Act of 1934, as amended. When we use in this release, the words "estimate," "project," "believe," "anticipate," "intend," "expect," "plan," "predict," "may," "should," "will," "can," the negative of these words , or such other variations thereon, or comparable terminology, are all intended to identify forward looking statements. Such statements reflect the current views of GoldSands Development Company with respect to future events based on currently available information and are subject to numerous assumptions, risks and uncertainties, including but not limited to, risks and uncertainties pertaining to development of mining properties, changes in economic conditions and other risks, uncertainties and factors, which may cause the actual results, performance , or achievement expressed or implied by such forward looking statements to differ materially from the forward looking statements. The information contained in this press release is historical in nature, has not been updated, and is current only to the date shown in this press release. This information may no longer be accurate and therefore you should not rely on the information contained in this press release. To the extent permitted by law, GoldSands Development Company and its employees, agents and consultants exclude all liability for any loss or damage arising from the use of, or reliance on, any such information, whether or not caused by any negligent act or omission.

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