Golden Band Announces $9 Million Debt Financing

Saskatoon, Saskatchewan, November 29, 2011. Golden Band Resources Inc. (Golden Band or the Company) (TSX-V:GBN) is pleased to announce that Sprott Resource Lending Partnership has agreed to provide $9 million in senior secured financing to the Company. The funds will be used to advance development of the Komis and Golden Heart gold deposits and for general corporate purposes.

The senior financing, secured by a first ranking charge over certain assets of the Company, will consist of a bridge loan with an 18-month term and will be repaid in 12 monthly instalments of $750,000 commencing on July 31, 2012 continuing to June 30, 2013.

Interest is payable quarterly on each of March 31st, June 30th, September 30th and December 31st. The rate of interest is linked to the price of gold (Bloomberg Composite), on a sliding scale:

The Company will pay a structuring fee to the lenders equal to 2% of the principal amount on the date the term sheet is executed as well as a bonus equal to 5% of the principal amount, payable in cash on the closing date.

Closing of the financing is expected on or about December 31, 2011, subject to receipt of all necessary regulatory approval, including approval of the TSX Venture Exchange, and to the usual conditions.
Ron Netolitzky, Chairman of the Board for Golden Band, stated "This financing allows us to continue the development of the Komis and Golden Heart gold deposits as we work to achieve our near-term production objective of 70,000 gold ounces per year."