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Great Basin Gold Ltd. Announces Exercise of Over-Allotment Option

Posted on: Thursday, 26 March 2009, 13:02 CDT

VANCOUVER, March 26 /PRNewswire-FirstCall/ - Great Basin Gold Ltd. (the "Company") (TSX: GBG; NYSE AMEX: GBG; JSE: GBG) announces that BMO Capital Markets and RBC Capital Markets, on behalf of the underwriters, have exercised the underwriters' over-allotment option to purchase an additional 15,000,000 common shares at a price of C$1.25 per common share and 7,500,000 warrants at a price of C$0.10 per warrant, for gross proceeds to the Company of C$19,500,000. Each full warrant will entitle the holder to purchase a common share of the Company at a price of C$1.60 at any time before 5:00 p.m. (Vancouver time) on October 15, 2010. The over-allotment option was granted to the underwriters by the Company to cover over-allotments under the terms of the Company's public financing completed on March 13, 2009 and the exercise of the over-allotment option brings the total gross proceeds raised from the offering to C$149,500,000. A syndicate led by BMO Capital Markets and RBC Capital Markets acted as underwriters in connection with the offering. Closing of the over-allotment occurred today.

The net proceeds from the offering will be used by the Company to fund the development of the Company's Burnstone project in South Africa and for general corporate purposes.

Ferdi Dippenaar President and CEO No regulatory authority has approved or disapproved the information contained in this news release.

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address possible future commercial production, reserve potential, exploration drilling results, development, feasibility or exploitation activities and events or developments that Great Basin Gold expects to occur are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, geopolitical uncertainty, changes in government policies regarding mining and natural resource exploration and exploitation, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's annual Form 40-F filing with the United States Securities and Exchange Commission and its home jurisdiction filings that are available at www.sedar.com.

SOURCE Great Basin Gold Ltd.

Source: PR Newswire

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