Golden Band Reports Net Income of $1.8 million and Cash Flow from Operations of $5.8 million for Q3 2012

SASKATOON, March 20, 2012 - Golden Band Resources Inc. (TSX-V: GBN and OTCQX: GBRIF) (the Company) released its interim financial and operating results for the quarter ended January 31, 2012 (Q3 2012). All figures are reported in Canadian dollars, unless otherwise noted:


Financial highlights:

- The Company reported revenue of $17.1 million for the quarter ended January 31, 2012 on sales of 9,969 gold ounces, an average realized price of $1,711/ounce.

- The Company produced 9,679 gold ounces in Q3 2012.

- Cash cost of sales per ounce of gold sold was $988 for Q3 2012.

- Generated gross profit of $3.8 million and cash from operations of $5.8 million in Q3 2012.


Operational highlights:

- Production from Roy Lloyd mine in Q3 2012 was 24,048 tonnes ore at a grade of 11.40 grams/tonne (g/t) gold.

- Commenced mining at EP and produced 18,700 tonnes grading 6.96 g/t gold.

- Processed 30,382 tonnes at the Jolu mill in Q3 2012 grading 10.98 g/t gold, producing 9,679 gold ounces.

"The financial and operating results for Q3 2012 are positive for an operation that is completing only its third full quarter of commercial production" stated Ronald K. Netolitzky, Chairman of Golden Band. "We did experience issues with equipment downtime and ore haulage from Roy Lloyd and EP mines to the Jolu mill that did impact production in the quarter. These types of issues are not unusual for a start up gold mine and have been addressed by the contractor providing these services. In spite of these challenges, we were able to produce earnings of $1.8 million and cash flow from operations of $5.8 million."


Review of Financial Results

The net and comprehensive income for the quarter ended January 31, 2012 was $1.8 million compared with a net loss of $2.0 million for same quarter in the previous year. Gross profit for Q3 2012 was $3.8 million, while general and administrative expenses were $1.2 million for Q3 2012, down from $2.1 million in the same quarter of the previous year, and reflective of the increased level of activity early in 2011 associated with commissioning of the Roy Lloyd mine and Jolu mill. There was a future income tax expense of $947,512 versus an expense of $69,533 in the same quarter of the previous year.

There was $5.8 million in cash generated by operations for the quarter ended January 31, 2012 versus $10.6 million for the quarter ended January 31, 2011. There was $3.2 million of this cash used in the continued development of Komis and EP deposits along with $2.3 million in ore development at Roy Lloyd mine.


Review of Operational Results

For the quarter ended January 31, 2012, the Roy Lloyd Mine produced 24,048 tonnes of ore with an average grade of 11.40 g/t gold, a 16% decrease from the previous quarter as productivity issues related to a shortfall in experienced mining personnel and equipment downtime were experienced.

The EP mine was brought into production in Q3 2012 with 446,880 tonnes of waste stripped and ore mined of 18,700 tonnes grading 6.96 g/t gold.

Production at the Jolu mill for Q3 2012 was 9,679 gold ounces with 30,382 tonnes of ore processed with an average grade of 10.98 g/t gold compared to 11,870 gold ounces and 33,822 tonnes of ore processed with an average grade of 10.91 g/t gold in Q2 2012. The decrease in poured ounces and processed tonnes related to ore haulage issues for both the Roy Lloyd and EP mines. These issues were resolved in early January.


Exploration

As reported in a news release on October 25, 2011, diamond drilling was completed at Fireweed, a target that was identified during the exploration program in the summer of 2011. This drilling consisted of four diamond-drill holes, a total of 335.5 metres, on two fences approximately 50 metres apart. Of particular note is the intersection of a hanging wall mineralized zone containing 9.4 g/t gold over 2.0 metres in drill hole FF-1.

The Fireweed trend was traced for a minimum of 250 metres based on the bulk till sampling program. Two drill holes, totalling 300 metres, were also completed to test the 301 Pit target in the Round Lake area and the extensive till anomaly situated south of Round Lake. With assay results of 1.0 g/t gold or less, these indicate that the sources of the basal till anomalies have not been located. Mineralized quartz vein till cobbles obtained from Pit 301 returned assays of 186 and 8,810 parts per billion gold.

In Q2 2012, Golden Band agreed to purchase from Cameco Corporation its 66.66% interest in the Preview Lake project within the southern La Ronge Gold Belt, with closing expected by the end of Q4 2012. The property is 40 km south of Golden Band's Roy Lloyd gold mine and 85 km south of the Jolu gold mill.

The Company will receive SMDC/Cameco's historical files from their exploration work, estimated at approximately $22 million. The claims are in good standing, with assessment work credits on much of the land until 2023. Although located within the Lac La Ronge Provincial Park, mineral exploration and development is permitted within a provincially defined Mineral Disposition Zone.

Golden Band Resources has exercised its option for the North Lake gold deposit with 1542651 Alberta Ltd. Notice has been provided to the vendor of the Company's intention to proceed with the exercise of the option.


Outlook

Mine development at Roy Lloyd continued to focus on establishing access below existing production areas. The decline was advanced below the 1175 level and ore zone access completed on the 1245 and 1220 levels. Ore production was sourced from stoping operations within the mineral reserve blocks between the 1265 level and 1325 level. Additional development ore was produced from within the mineral reserve block between the 1200 level and the 1245 level. Level development completion has provided additional working faces and stope drilling is progressing on all levels from 1220 to 1325. The Alimak ventilation raise was completed from the 1220 to the 1265 level and electrical infrastructure has been installed to allow mining operations to progress to deeper levels.

Phase 1 of a surface diamond drill program commenced with a total of 2,957 metres completed in the quarter. Drilling continues with completion of the drill program expected in April, 2012.

At EP, further geological interpretation was underway to investigate the economics of potential phase 2 and 3 expansions to the immediate south and north of the pit, respectively.

At Komis, work is nearing completion on the open pit mining plan. The planning is expected to be completed in Q4 2012 with mining set to commence shortly thereafter.

At Golden Heart, the Company has received Ministerial approval pursuant to the Saskatchewan Environmental Assessment Act, which will allow for construction, development and eventual production from open pit. Planning for this work has commenced with production targeted for mid-2013.

Gold production from the Jolu mill is expected to be 45,000 gold ounces for the first year of commercial production.


About Golden Band

Golden Band Resources, already Saskatchewan's leading gold explorer, is now also its newest gold producer. Golden Band is a Saskatchewan-based, publicly listed company (TSX-V: GBN and OTCQX: GBRIF) whose focus is the long-term, systematic exploration and development of its 100%-owned La Ronge Gold Belt properties. Since 1994, Golden Band has assembled through staking and strategic acquisition a land package of more than 845 km2, including 12 known gold deposits, four former producing mines, and a licensed gold mill. Golden Band's key value drivers are the methodical and systematic targeting of primary to advanced-stage exploration while progressing along a parallel path of being a sustainable gold producer. The Company has achieved its goal of commercial production of its Bingo and EP deposits with processing at the 100%-owned Jolu mill. The Company's objective is the annual production of at least 75,000 ounces of gold over a ten-year project life. Other longer-term objectives include the continuation of its highly successful exploration and acquisition strategies.


On behalf of the Board of Directors of Golden Band Resources Inc.,

"Ronald K. Netolitzky"
Ronald K. Netolitzky, Chairman



All of Golden Band's exploration programs and pertinent disclosure of a scientific nature are prepared and/or designed and carried out under the supervision of Saimon Ngindi, P.Geo., who serves as the qualified person (QP) under the definitions of National Instrument 43-101.


Caution Regarding Forward-Looking Information and Statements

This document includes statements and information about the Company's expectations for the future. When Golden Band's strategy, plans, and future financial and operating performance, or other things that have not yet taken place, are discussed, the Company is making statements considered to be forward-looking information or forward-looking statements under Canadian and United States securities laws. Such forward-looking information and statements in this document are referred to as "forward-looking information".

Generally, forward-looking information can be identified by the use of forward-looking terminology such as, for example, "plans", "expects" or "does not expect", "is expected", "budget", "goal", "target", "project", "potential", "strategy", "outlook", "scheduled", "predicts", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate" or "believes", and similar expressions, or the negative connotation thereof or variations of such words and phrases or statements that certain actions, events or results, "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof.

Readers are cautioned that the forward-looking information in this document represents Golden Band's current views and can change significantly. Forward-looking information contained in this document is based on certain material assumptions, including, but not limited to:

- geological and other conditions that may affect exploration, development, and the amenability for mining;
- the Company's ability to comply with current and future environmental, safety and other regulatory requirements, and to obtain and maintain required regulatory approvals; and,
- the Company's operations not being significantly disrupted as a result of political instability, nationalization, terrorism, sabotage, blockades, breakdown, natural disasters, governmental or political actions, litigation or arbitration proceedings, or other development or operating risks.

Readers are cautioned that such assumptions are not exhaustive and may prove to be incorrect. Although the Company believes that the assumptions on which the forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking statements because Golden Band can give no assurance that they will prove to be correct.

Actual results and events may be significantly different from those currently expected due to a number of material risks. These include, but are not limited to:

- the Company's inability to enforce its legal rights, or its being subject to litigation or arbitration that has an adverse effect on the Company;
- defects in title to the Company's properties;
- unexpected or challenging geological, hydrological, or mining conditions;
- environmental, safety and regulatory risks, including increased regulatory burdens or delays;
- the Company's inability to obtain or maintain necessary permits or approvals from government authorities or other third parties;
- changes to government regulations or policies, including, but not limited to, tax and trade laws and policies;
- natural phenomena, including, but not limited to, inclement weather, fire, and flooding; and,
- operational disruption of the Company due to problems and other developments and operating risks.

In addition, Golden Band's annual and interim MD&A, which are available on SEDAR at www.sedar.com, include a discussion of other material risks that could cause actual results to differ significantly from the Company's current expectations.

Forward-looking information is designed to help the reader understand management's current views of the Company's near and longer-term prospects, and it may not be appropriate for other purposes. The forward-looking information contained in this document is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

The forward-looking information is expressly qualified by these cautionary statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.



For further information:

Mark J. Thiel, CA, VP Finance and CFO
Golden Band Resources Inc.
Phone: 306 385 7128
Fax: 306 955 0788
Email: mark.thiel@goldenbandresources.com

Investor Relations:
Raju Wani: 403 240 0555
Tony Perri: 604 682 6852
Email: info@goldenbandresources.com
www.goldenbandresources.com