GOLDEN BAND RESOURCES INC. PRODUCTION DECISION ANNOUNCED WITH COMPLETION OF
SENIOR FINANCING

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

GBN: TSX Venture Exchange

SASKATOON, Sept. 2 /CNW/ - Golden Band Resources Inc. ("Golden Band" or the "Company") (GBN: TSXV) is pleased to announce that, effective August 31, 2010, it has closed its previously announced offering (the "Offering") (see news release of June 22, 2010) of US$7,000,000 principal amount senior secured notes (the "Notes") and 3,000,000 share purchase warrants (the "Warrants"), by way of private placement, to Sprott Asset Management L.P. (for and on behalf of certain managed accounts and funds) ("Sprott"). The net proceeds from the Offering are to be used by Golden Band to assist it with the development of its La Ronge Gold Project and for working capital purposes.

Ronald Netolitzky, Golden Band's Executive Chairman, is very pleased to state that, "With this successful financing, Golden Band's Board of Directors has approved the production decision for the Bingo gold deposit. This is a very significant milestone that will elevate the Company to status of junior gold producer." Gary Haywood, Golden Band's COO, says that, "We are on target, having completed a significant portion of the work at Bingo site and the Jolu mill, for production start up in the fourth quarter of 2010."

The Notes are secured by a first ranking charge over all assets of the Company and will be repaid through monthly cash payments over the term of the Notes. Monthly repayment on the Notes will commence on January 31, 2011 and continue until October 31, 2011. If any monthly repayment of the Notes is delayed, a cash penalty payment of US$35,000 per month will be due until the payment is made.

Each monthly payment shall be equal to the US dollar amount arrived at when dividing 900 (or 135.29 in respect of the last month of the payment period) by the net asset value per GLD Share in gold ounces on the last business day of such month (being the "Net Asset Value per GLD in Gold Ounces" quoted on www.spdrgoldshares.com/sites/us/value/), and multiplying the quotient thereof by the net asset value per GLD Share on the last business day of such month (being the "Net Asset Value per GLD" quoted on www.spdrgoldshares.com/sites/us/value/). The aggregate of all such payments will be equivalent to the cash value of the payment mechanism set out in the press release of the Company on June 22, 2010. In addition, the Company has guaranteed a minimum rate of return of 5% per annum on the aggregate principal amount over the life of the Notes.

Each Warrant is exercisable into one common share in the capital of the Company (a "Common Share") for a period of three years from the date of closing of the Offering (the "Term"). The exercise price of the Warrants are CDN$0.40 per Common Share during the first year of the Term and CDN$0.50 per Common Share during the last two years of the Term.

The Company has paid to Sprott a US$100,000 structuring fee in connection with the Offering, and has granted to Sprott a right of first refusal to buy, at any time and from time to time, up to all of the gold production from the La Ronge Gold Project.

The Notes, the Warrants and Common Shares issuable upon exercise of the Warrants are subject to a hold period of four months and one day from the date of closing of the Offering.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities in the United States. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933 (the "Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.

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

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

All of Golden Band's development-related programs and pertinent disclosure of a development nature are prepared and/or designed and carried out under the supervision of Gary Haywood, P.Eng., Golden Band's VP of Operations and COO, who serves as the qualified person (QP) under the definitions of National Instrument 43-101.

Cautionary Statements on Forward-Looking Information: This news release includes certain "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the planned use of proceeds of the Offering, repayment of the Notes according to their terms, development and exploration activities generally, and future plans and objectives of Golden Band are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events, or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking 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.

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For further information: Mark J. Thiel, CA, VP Finance & CFO, Golden Band Resources Inc., Phone: [phone] x7128, Fax: [phone], Email: [email protected]; Investor Relations: Raju Wani: 403.240.0555, Tony Perri: 604.682.6852, Email: [email protected], www.goldenbandresources.com