News Release - May 10, 2012

This news release has all of the necessary information to comprehend "cost-of-revenue", taxes on "cost-of-revenue" and why the interest paid matches taxes on cost of revenue exactly.

In the balance sheet, a 15% tax is paid on cost of revenue, which is termed 'taxes paid on drilling' but really means the costs involved in mining. Said to be $1.5 million a quarter, is never tabulated, because those taxes are written off due to interest paid. $6m. a year is 15% of $40m. in costs. Over and above this, you have the untaxed revenue as part of a revenue based financing, which us probably about twice, $80m.

The Waterton deal perhaps makes GBN.V and The Mint counterparties. The mint actually receives the equivalent of ~$100m. + in a swap for doré in a given year, or ~100k. oz.

This is if you compare The Mint's Exchange Traded Receipts' liabilities in a given year. This does not compare well with Sprott's Physical Gold fund's liabilities' column. The Waterton deal is somehow a cover for Sprott's Gold Notes agreement. The liabilities column in Sprott's ends in 2013.

But the number of ounces necessary to fill out Sprott's liabilities are staggering, and not mentioned in any way or referred to on the balance sheet for GBN.V. But it consists of a capital raise, using revenue-based financing.

Presumed that Sprott's swap of cash for gold to be refined at the mint to be at least the same as The Mint. The Mint is taking five years to fill out their requirement but, Sprott only took three years to fill out.

You might say that the company 'revenue', based on providing the mint is perhaps $0.35 a share, and as I speculate that Sprott's is the same size, $0.70. So that makes the share value @10 P/E $7 a share. You can see why they would want to hide such information.

They still need a majority vote in favour for privatization, but that means also that you need to accumulate enough shares to be in the top 50 shareholders. By law, they have to tell you exactly what you're voting on. If they already have a majority of shares in a closely held minority, then they may not be obliged to inform you of anything.

http://www.goldenbandresources.com/html/news/press_releases/index.cfm?ReportID=203261

-F6