Gold Bullion Development Corp. Raises $4.78 Million In Over-Subscribed Private Placement

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VANCOUVER, May 9 /CNW/ - Gold Bullion Development Corp. (TSXV: GBB) (OTCPINK: GBBFF) announces that it has raised gross proceeds of approximately $4,782,000 from its previously-announced private placement by issuing 7,142,770 "flow-through" common shares at a price of $0.61 per share, for gross proceeds to Gold Bullion of approximately $4,357,000, and by issuing 833,333 units at a price of $0.51 per unit, for gross proceeds to Gold Bullion of approximately $425,000. Gold Bullion issued the "flow-through" shares and units to "accredited investors" in Ontario and Québec.

Each of the 833,333 units is comprised of one common share and one-half of a common share purchase warrant. Each full warrant entitles its holder to acquire one additional common share of Gold Bullion at a price of $0.69 for twelve months.

Gold Bullion will use the proceeds from the issuance of the "flow-through" shares for exploration on its Granada Property near Rouyn-Noranda, Québec, and will use the proceeds from the issuance of the units for working capital.

The "flow-through" shares and units were issued on a best-efforts basis through Industrial Alliance Securities Inc. as agent. As the private placement was over-subscribed, Industrial Alliance Securities Inc. exercised in part, at the closing, an over-allotment option granted to it by Gold Bullion. The balance of the over-allotment option may be exercised by Industrial Alliance Securities during the next 30 days. If the over-allotment option is exercised in full, Gold Bullion will raise gross proceeds of $5,060,000 from the private placement.

In connection with the private placement, Gold Bullion paid a cash commission to Industrial Alliance Securities in an amount equal to 6.5% of the gross proceeds.

The securities issued by Gold Bullion pursuant to the private placement are subject to a four-month "hold period" ending on September 10, 2011 under applicable securities legislation and the policies of the TSX Venture Exchange.

Following the closing of the private placement, there are 166,662,205 common shares of Gold Bullion issued and outstanding.


About Gold Bullion Development Corp.

Gold Bullion Development Corp. is a TSX Venture-listed junior natural resource company focusing on the exploration and development of its Granada Property near Rouyn-Noranda, Québec, and its Castle Silver Mine in Gowganda, Ontario.

For more information on Gold Bullion Development Corp. (TSXV:GBB) (OTCPINK:GBBFF), visit our web site: http://www.GoldBullionDevelopmentCorp.com.


Frank J. Basa, P.Eng.
President and Chief Executive Officer



Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.



For further information:

Frank J. Basa, P.Eng., President and CEO: 1-416-625-2342
Roger Thomas, Director: 1-613-292-2438
Progressive Investor Relations (Canada) Tel (604) 689-2881 or email info@progressive-ir.com
Torrey Hills Capital (United States) Tel (858) 456-7300