Great Basin Gold's Hollister Project signs Ore Purchase Agreement with Newmont

Great Basin Gold Ltd. ("Great Basin Gold" or the "Company") (TSX: GBG; AMEX: GBN; JSE: GBG) today announced that it has signed an Ore Purchase Agreement with Newmont Mining Corporation ("Newmont") whereby Newmont will purchase approximately 15,000 tons of bulk sample extracted from the Company's Hollister Project, in Nevada, USA.

The 15,000 ton bulk sample was produced from the Hollister Project's ongoing trial mining initiative and sold to Newmont for processing, as part of the Company's metallurgical test work and processing optimization of the Hollister ore. It is expected that the ore will yield an average grade of 1.3 oz/ton of gold and 9 - 12 oz/ton of silver.

Shipping of the ore commenced earlier this week and processing of the 15,000 tons will be completed by the end of December 2008. The Ore Purchase Agreement further states that Newmont shall be responsible for all costs associated with the transportation and processing of the 15,000 tons with Great Basin Gold being paid a total of US$470/oz per recovered gold ounce.

President and CEO Ferdi Dippenaar said: "The Ore Purchase Agreement will not only allow the Company to further refine its understanding and definition of the most efficient mining and processing methodologies for Hollister, but also allows the Company to realize revenue which is important to ensure the sustainability of the project. The Company is busy reviewing its options for the processing of ore to be produced at the Hollister Project."

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address possible future commercial production, reserve potential, exploration drilling results, development, feasibility or exploitation activities and events or developments that Great Basin Gold expects to occur are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, geopolitical uncertainty, changes in government policies regarding mining and natural resource exploration and exploitation, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's annual Form 40-F filing with the United States Securities and Exchange Commission and its home jurisdiction filings that are available at www.sedar.com.

SOURCE: Great Basin Gold Ltd.

on Great Basin Gold Ltd. and its gold properties, please visit the Company's website at www.grtbasin.com or contact Investor Services: Tsholo Serunye in South Africa, 27 (0)11 301 1800; Michael Curlook in North America, 1-888-633-9332; Barbara Cano at Breakstone Group in the USA, (646) 452-2334