The Hollister deposit is one of the highest grade gold deposits in the world (M & I Resources total 1.64 M Au eq oz and grade 1.30 opt / 45 g/t Au), and is being developed as a small underground operation extracting approximately 10,000 tons per month. Great Basin Gold is continuing trial mining (ore removal and test-processing) activities at Hollister within the allowable ore tonnage authorizations of its existing permits. Currently trial mining is testing cut and fill and, where appropriate, longhole stoping methods on the narrow sub-vertical epithermal veins. The minimum mining width for cut and fill is 3 ft 6 in, so there is a need for careful mine planning to manage planned dilution levels.

The vertical-dipping gold-bearing veins at Hollister are accessed by mechanized means and exploited by conventional methods.  From the main decline, laterals have been developed on an east-west strike towards mineable vein blocks.  From the laterals, man-ways or draw point headings are developed perpendicular to strike to intersect the veins.  Where multiple veins may be mined from the same level, lateral accesses (generally heading in a north or south direction) are also developed.  From the man-ways or draw points, a raise is developed vertically into the vein to establish the first horizontal mining cut, which would be advanced using hand-held jack-leg drills.  This raise may also be developed as an Alimak raise where appropriate. Each stope is 90 feet high, comprising 15 vertical cuts of 6 feet. The trial mining has been optimizing a cycle involving a sequence of drill, blast, muck out, channel sample and map the back of the cut, load and truck to surface stockpile, backfill, cementation for the next cycle. A sill pillar is left between cuts on different levels where ground conditions or mining sequencing dictates.

Material extracted from the operation is trucked 280 miles for processing at the wholly owned Esmeralda mill facility in Hawthorne, NV.

Plans for remainder of 2011

The Company plans to continue its trial mining (ore removal and test-processing) activities at Hollister within the allowable ore tonnage authorizations of its existing permits, with all extracted material to be processed at the Esmeralda mill. The acid regeneration system being installed at the Esmeralda mill to enhance recoveries by preventing carbon fouling is scheduled for completion in Q3 2011. The Nevada operations remains on target to produce an estimated 110,000 Au eqv oz in 2011 at a cash production cost estimated to range between US$600 to US$650.

The Company is continuing with underground exploration drilling of the Blanket Zone targets and infill drilling with a view to bringing the current inferred mineral resources into the indicated or measured categories. Step-out drilling to further explore the potential for extensions of the current vein systems to the west, northwest, under the existing opencast and north to Butte and Velvet targets will be scheduled in 2012, and will include surface diamond drilling. A further phase of surface drilling has been planned for the Hatter Graben, but is currently being deferred due to successes close to the current mine development. The results of underground mapping and exploration drilling continue to refine the Company's understanding of the Hollister Property deposit, to the extent that additional mineralization continues to be identified within the mineralized vein systems.

The Company will also continue working on finalization of the EIS for Hollister by early 2012.