Golden Predator is Golden in the Yukon (Michael Berry 3/3/11)

Renamed from American Bullion Development Corp.

North American Royalties and Assets in Nevada and the Yukon

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Golden Predator is Golden in the Yukon (Michael Berry 3/3/11)

posted on Mar 02, 2011 08:45AM

2. Golden Predator is Golden in the Yukon

Transitioning to the Yukon’s colder climes now, another one of our mature discovery plays,

Golden Predator (GPD:TSX)

has also released its 2011exploration plans. CEO Bill Sheriff has picked up where he left off in 2010 having begun a winter drill program at two Yukon properties - Brewery Creek and Grew Creek - to build on the drill successes encountered there last year.

At Grew Creek, three holes drilled in 2010 intersected mineralization including:

 146.3 m of 1.72 g/t Au from hole GC10-001

 132.18 m of 1.21 g/t Au and 31.75 m of 2.08 g/t Au from hole GC10-002

 60.85 m of 1.93 g/t Au and 8.5 m of 1.89 g/t Au from hole GC10-003

Golden Predator’s goal is to obtain an NI 43-101 resource estimate on the property by Q3 2011.

At Brewery Creek, a 2,500 meter drilling plan is in place to expand 2010 discoveries at the Bohemian zone including an intercept of 56.5 m of 3.2 g/t Au beginning at a depth of 27 meters in hole BC10-170. Also, GPD will be using Precision geosurveys Inc on the property for a helicopter-borne hi-resolution aeromagnetic survey across the entirety of the property in March 2011. This will serve to better define drill targets and lead to more discovery holes and exploration wealth increase.

There is currently an NI 43-101 on the property with an indicated resource of 3.98 MM tonnes gold (Au) @ 1.135 g/t (0.038 oz/t) and an inferred resource of 2.20 MM tonnes Au @ 2.01 g/t (0.059 oz/t) at a cut off of .5 g/t. The company will update this resource and release an updated NI 43-101 in Q2/Q3 2011.

GPD has a C$16.5MM budget in place and will devote $11.5MM of that to Yukon exploration on various properties (such as Clear Creek) over the course of this year. In addition the royalty stream the company receives from its properties in the Western U.S will increase in the future. In 2010, GPD received over $1MM of pre-production royalty revenues (based on USD $975/oz AU). This cash inflow is "like gold," if you’ll pardon the pun, to a junior exploration play. It staves off the dreaded share dilution that comes with early capital raises in the public markets. Obviously leverage to a rising price of gold at the royalty level is key for GPD. The company has said they anticipate $10MM to $15MM in cash flow over the next four to five years from these royalties.

MORNING NOTES 4 OF 4

3/2/2011

We think this stock has much more upside potential before all is said and done. Last year Yukon exploration companies like Kaminak, Underworld and Atac exploded to the upside on positive drill results. We now think that it is GPD’s turn.

We started covering GPD last year when it was trading in the 0.40 cent range. We published a major report last summer with the stock trading at 0.52 cents. With today’s close had you invested when we released the report you’d be sitting on a

gain of 98%.

If GPD’s recent stock price performance is any indication, they have made a shrewd move in starting their Yukon exploration season early. Once the ground thaws and the drills really begin to turn for GPD in the Yukon, positive results should indeed be in the offing.