Poised to become a mid-tier gold producer

Great Basin Gold recognizes that operating successful operations in the long term depends on our ability to sustain stakeholder support in line with our primary goal to maximize the value of the Company in a socially responsible way. Creating opportunities that foster sustainable development in the communities and countries where we operate is a prerequisite to maintaining a strong social license, something we continuously seek to improve. We strive to be an industry leader in social and environmental responsibility.

Operating for more than four years in the Dipaleseng hosting community, which comprises the towns of Balfour, Grootvlei and Greylingstad, has afforded Great Basin Gold the opportunity to establish trust based relationships with both community leaders and government structures in our ongoing endeavor to influence, develop and uphold human rights and development. By continuing to be responsive to both the issues at hand and expectations of our stakeholders, we build trust and reduce business risks over the long run. In the communities where we operate, our operations will remain a catalyst for social and economic development and contribute to an ongoing higher standard of living beyond the life of our mines.

Sustainable development must focus on environment, economy and culture. Our focus areas include:

Local Economic Development

In adherence to Great Basin Gold’s procurement policy, our supply chain department ensures that tenders from Burnstone Mine are advertised first and foremost within the surrounding Dipaleseng area, with preference given to local businesses and contractors. A key area to invest in community sustainability beyond the lifespan of the mine is to identify and develop in conjunction with local entrepreneurs from the hosting communities small and medium size enterprises and develop their capabilities to supply either services or products to the supply chain of the mine. Initiatives are also underway to encourage larger manufacturers and distributors to consider offering franchise opportunities to local entrepreneurs. The possibility of joint ventures between small local suppliers and larger suppliers holds real potential and opportunities for the future of the region.

Infrastructure Development

Due to high levels of unemployment and low levels of income, infrastructure in the Dipaleseng region is not adequate to facilitate growth. Great Basin Gold has therefore been working in partnership with government to assist local authorities to improve the quality of planning and to provide engineering and financial services to deliver key infrastructural projects. These include the establishment of a permanent project management unit to raise government funds for infrastructure repair and development.

Agriculture

Great Basin Gold has authorized a feasibility study to determine the extent to which diversified crop and vegetable farming with a centralized pack house and distribution facility will have the potential to become a medium size business employing up to 500 people from the Dipaleseng community.

Environment

At Burnstone Mine, the development footprint has been limited to the bare minimum. Infrastructure is constructed from make shift material and waste rock, which is easy to remove without major breakdowns and rehabilitation, this reducing environmental liabilities during the reclamation phase at the conclusion of the mine life. At Hollister Mine, Great Basin Gold has gone the extra mile to develop the project to have the least possible environmental impact, including foregoing surface mining and on-site mineral processing.

Culture

Great Basin Gold purchased the Rock Creek lands in northern Nevada close to the Hollister Mine operations area, with the intention of protecting them from any mining activities. The Company is now working with The Bureau of Land Management (BLM) and local Native Americans to preserve these lands, as well as addressing related issues surrounding cultural resources and Native American religious concerns. Tribal consultations have been conducted and arising concerns are given due consideration.

Housing

Great Basin Gold is involved in developing quality affordable housing for mine workers and residents of Balfour in order to alleviate a current shortage. Ninety-eight low cost houses have already been built, with construction undertaken by local building contractors with support from the Burnstone Development Trust which supplied engineering, financial and supply chain assistance. The Trust will continue to work in partnership with the Department of Human Settlements and is finalizing a study to determine the feasibility of developing 100 more homes, presenting the potential to stimulate the building and construction sector of the community.

Community Policy Statement

We are committed to maintaining the best possible relationships with the communities in which we operate. We cannot function as a company unless we are accepted in the communities in which we operate, and we cannot be accepted in our communities unless we act responsibly toward our neighbours and those who are impacted by our activity. We must remember that in many instances we are guests in the community and that if we eventually leave, the community and its members will remain in place. If we are to be welcomed in other communities in the future, it is imperative that we leave a legacy of good will in those places where we have conducted business in the past. The Company's policy is to make positive contributions to the communities in which we operate, including encouragement of local employment in our operations and financial contributions to an appropriate extent, so that the community is enriched by our presence. We also encourage all of our employees to participate in community activity.

Our suppliers and customers are critical to our success in many ways. We are committed to maintaining honest and mutually beneficial relationships with our suppliers and customers. We expect to be treated fairly by our suppliers and customers, and our suppliers and customers are entitled to the same treatment from us. Our reputation for fair dealing will serve to benefit us whenever and wherever we engage in business.

Our relationships with governmental entities can be especially important in our success as a company. We are committed to dealing in an honest and forthright manner with all governmental entities with which we have relationships. While we will exercise and protect our legal rights, we will also cooperate with all governmental entities in recognition of our civic duties.