January 10, 2003

News Release: $10 Million Private Placement Financing

Ronald W. Thiessen, President and CEO of Great Basin Gold Ltd. is pleased to announce that the Company has entered into a financing agreement with Loewen, Ondaatje, McCutcheon Limited, on its own behalf and including Desjardins Securities Inc., Haywood Securities Inc., and Pacific International Securities Inc. (the 'Agents') to raise up to $10 million by way of a private placement with certain investors comprising sophisticated purchasers and accredited investors. The placement consists of 5.6 million Units at a price of $1.80 per Unit. Each Unit will comprise one common share and one half of one common share purchase warrant. Each whole warrant is exercisable to purchase an additional common share at $1.80, for a one year period from the date of closing. Great Basin will pay a commission and an option entitling the Agents to subscribe for 6% of the number of the Units sold by the Agents at an exercise price of $1.80 for one year. The common shares and warrant common shares are subject to a hold period in Canada for four months from the date of closing. The financing is scheduled to close by the end of January, 2003 and is subject to regulatory approvals expected in the ordinary course.
The $10 million private placement combined with Great Basin's current treasury of approximately $14 million will be used to fund the acquisition, exploration and development of the Burnstone gold project, other potential future exploration programs, and for working capital and general corporate purposes.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the 'U.S. Securities Act') or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

For further details on Great Basin Gold Ltd. and its Burnstone and Ivanhoe Gold Projects please visit the Hunter Dickinson website at www.hdgold.com.

ON BEHALF OF THE BOARD OF DIRECTORS

Ronald W. Thiessen, President and CEO

CONTACT: TEL: (604) 684-6365 Investor Services, Great Basin Gold Ltd.

TEL: 1-800-667-2114

FAX: (604) 684-8092

Website: www.hdgold.com

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