ASX/ MEDIA RELEASE 28/03/ 2012 Exciting developments for GBM Gold at its Wedderburn Resource Project Highlights of this announcement: Details Exciting results from recent Diamond drill programme at Gowks Hill include : o mineralisation model confirmed o best intersection 2m at 30g/t at depth of ~30m below surface o mineralised zone increased up to 20m in width o modelling and analysis of latest drill data underway and expected to deliver significant upgrade of near surface resource amenable to open pit mining Bulk sample work plan for Gowks Hill resource block submitted and awaiting approval by DPI Work planning for Open cut mining of Gowks Hill progressing Further exploration work has identified an increase of strike length to 1.2km for the entire Wedderburn Resource project Mining licence application for Wedderburn Resource project progressing : o agreement reached re Native Title, awaiting sign off on formal documents o issue and registration of Mining licence expected May/June 2012 Gold production and exploration Company, GBM Gold Ltd (ASX: GBM) announces it has completed preliminary analysis of diamond core from GHD001 and GHD002 from EL 3800 at Wedderburn with pleasing results. Strong mineralisation was recorded in both holes with GHD003 still awaiting analysis results. Appendix 1 shows significant intersections with a 0.5g/t cut off.
The drilling confirmed the geological model for Gowks Hill and shows that the veining and mineralisation is significantly increased from the previous interpretation of 5 metres in width to ~20 metres in width in the central portion, with over ~100 metres of strike length for the Gowks Hill resource block. Of significance was the return of a high grade intersection in the footwall fault of 2 metres at 30g/t at 52m down hole (~30m depth from surface) in GHD002 - which indicates the presence of a high grade shoot, undiscovered by the early miners. While high grade shoots were discovered both south of Gowks Hill (Scotch Jock, Lanes) and north (Queens Gully), the presence of predominantly low grades at surface (<5 g/t) has seen the Gowks Hill resource block predominantly undisturbed by historical mining. A significant intersection in the hanging wall fault in GHD001 of 1 metre at 9.1 g/t (from 5 6 metres) indicates higher grade zones are present on this structural plane as well. Encouragingly, the spread and tenor of the veining intersected still shows the widths and background levels observed in the RAB and RC drilling. Analysis is currently underway working to a resource upgrade announcement. A bulk sampling program is currently being assessed by the relevant authorities and will provide two significant samples to be treated through the Maxwells Mill at Inglewood. Commentary: The Gowks Hill resource block at Wedderburn has rapidly become for GBM a much more significant tonnage of low grade mineralised zone. Current indications are that this Gowks Hill resource block alone can provide 3-5 years of feed for the Maxwells Mill, with upside available from the extensions to the Gowks Fault zone at Wedderburn. From initial estimates of a 1 3 metre thick reef structure, a variable ~10-20m wide zone of cleavage parallel and anastomosing veining over a distance of +100metres of strike has been delineated by 37 RAB holes, 11 RC holes and the current diamond program. An assay check program of 1Kg BLEG analysis revealed that the mineralisation is reasonably disseminated with little differences noted between the fire assay and BLEG analysis. Further metallurgical checks are being undertaken to establish grind size for recovery. A bulk sample programme is currently under assessment for approval. In 2009, an Inferred Resource of ~102,000 tonnes at 2g/t for ~6,600 ounces was estimated to 50 metres depth. A review of this resource is underway with significant upgrade expected. An announcement expected in May/June. Page 2 of 9
Separate to the Gowks Hill Resource, the Exploration Target for the entire Wedderburn Project has increased and is as shown below. Targets Strike m Width L m Width H m Depth S.G Tonnes L Tonnes H Grade g/t L Grade g/t H Ounces L Ounces H Gowks Hill 250 3 6 50 2.4 90,000 180,000 1.5 5 4,330 28,865 Queens Gully 100 3 6 50 2.4 36,000 72,000 1.5 5 1,732 11,546 Tantalla 350 3 6 50 2.4 126,000 252,000 1.5 5 6,062 40,411 Total 252,000 504,000 1.5 5 12,123 80,821 Table 1: Current Exploration Target values within EL 3800 It is expected that current analysis will allow much of the above Gowks Hill exploration target to be reclassified as Resource. Research and analysis of Historical Work: Research has now outlined the Gowks Fault zone as semi continuous structure, mineralised over 1.2 Km from Pemberton s and Queens Gully reefs in the northern extent of the EL to the Tantalla prospect in the south with numerous high grade areas mined in the past (Lanes, Scotch Jocks and Gardiners reefs). With the fault zone being characterised by two distinct faults, early miners and recent explorers focused on the individual fault planes and quartz veining which were of narrow +- 1metres width and of highly erratic grade. CRA Exploration in the early 1970 s recognised the line as significant but a lack of continuous high grade results saw them focus elsewhere. CRA noted that at Pemberton s reef, black shale returned 80+ g/t and visible gold was panned from the shale. It is interpreted that the shale is in fact the footwall shear zone, the plumbing conduit for the system. Carpentaria Exploration Company recognised the potential to the south of Gowks Hill at Lanes Reef and undertook 3 deep diamond drill holes. This drilling showed the structure to be continuous at depth but carrying similar grades to the surface 1 5g/t which was of little interest in the early 1980 s with the gold prices prevailing at that time. Geology: The Gowks Fault zone is comprised of two distinct fault planes ~ 10 20 metres apart, dipping steeply west and striking west of north. A regular series of oblique north east and North West later faults cut through the fault zone with minor dislocations. This has preferentially mineralised sections of the entire zone and formed steep plunging high grade shoots in parts of the fault zone. See fig 2. Page 3 of 9
Within the Gowks Hill resource block, a series of sympathetic peel off structures have formed between the two main faults and these have given rise to the large width of mineralised cleavage and spurry anastomosing vein sets observed to date. See fig below. The mineralised zone is comprised predominantly of sub vertical, cleavage parallel veins with anastomosing spurry veining in between the hanging wall and footwall faults which have diverged at shallow angles. Page 4 of 9
At GHDH 001, the faults are ~ 10 metres apart and the veining is contained within the two zones with a high grade intersection observed in the hanging wall structure. See fig 3. Page 5 of 9
At GHD002, a series of faults have increased the veining and mineralisation set over a width close to 20 metres. The footwall fault here has returned a high grade intercept of 2m at 30 g/t. See fig 4. The extremely soft nature of the ground has made core recovery difficult and clear relationships between the veins and the bedding hard to define accurately. This same factor is expected to make mining easier and cheaper than if the ground were hard. RAB and RC drilling on this section show the tenure of mineralisation. The diamond drilling has clearly shown the veining inferred from the previous RAB and RC drilling and with a clear mineralisation model, a close spaced drilling program will be undertaken to review the current resource figure. With the Maxwells Mill, Inglewood ~30Km away, the Gowks Hill resource block and the further targets at Wedderburn appear destined to provide significant feed to the mill. Page 6 of 9
The chart below shows the proximity of Gowks Hill, Wedderburn to the Maxwell Mill processing site. Page 7 of 9
Appendix 1 Hole ID Northing GDA Easting GDA Dip Azimuth From (m) To (m) Interval (m) Grade ave (g/t) GHDH-01 5968180 734791 060 090 mag Including 4.3 6 1.7 5.4 5 6 1 9.1 7.3 9 1.7 0.6 11 12.1 1.1 0.73 13.3 13.8 0.5 0.55 16 16.8 0.8 1.37 19.3 21 1.7 0.94 25 26 1 1.84 30 34.7 4.7 0.7 36.4 37 0.6 0.82 39 41.2 2.2 0.54 GHDH-02 5968110 734784 060 090 mag 0 6 6 1 Including 0.5 2 1.5 1.24 15.5 18 3.5 0.75 Including 24 34 10 0.72 33 34 1 2.04 38.8 40 1.2 0.64 Including 45 54.3 9.3 7.1 48 50 2 30.36 Appendix 1. Significant intersections from Gowks Hill (Assaying was undertaken by 50g Fire assay at Gekko Laboratories In Ballarat on ½ core (HQ)) ENDS Page 8 of 9
About GBM Gold Ltd (ASX: GBM) GBM Gold Ltd (GBM) is focused on building a strong gold production base in Central Victoria, Australia from its 2 processing sites at Inglewood and Avoca and their surrounding Resource projects. Within each of the Resource projects surrounding the processing sites are one or more granted tenements, each containing a number of well defined Resource blocks and/or Exploration Targets. The various Resource projects are at a mix of development stages, from production through to later or earlier analysis, exploration or development phases. GBM has highly experienced teams focused on the requirements of its processing sites and mining operations, a centralised geology team with strong background in the Central Victoria style of mineralisation as well as Bendigo based management, finance and administration personnel. For more information please visit the Company website: www.gbmgold.com.au Competent Person Statement The information in this statement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by John Cahill, who is a Member the Australian Institute of Geoscientists. John Cahill is both Resources Director of GBM Gold Ltd and a full time employee of Kralcopic Pty Ltd, the 100% owned operating company subsidiary of GBM Gold Limited. John Cahill has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. John Cahill consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Page 9 of 9