Gold Bullion Receives Statement of Claim from Genivar Inc.

Suite 1005, 1155 Rene Levesque Street West Montreal, Quebec H3B 2J2 Tel: 514-397-4000 / Fax: 514-397-4002

GOLD BULLION RECEIVES STATEMENT OF CLAIM FROM GENIVAR INC.

March 16, 2012 – Gold Bullion Development Corp. (TSX-V: GBB) (OTCPINK: GBBFF) (the “Company” or “Gold Bullion”) announces that Genivar Inc. has instituted a lawsuit against Gold Bullion in the Québec Superior Court, claiming approximately $785,000 in unpaid fees. The action relates to work which Genivar performed for Gold Bullion, primarily with respect to its Granada gold property in northwestern Québec.

Gold Bullion will vigorously defend the action and intends to institute a counter-claim against Genivar, under which Gold Bullion will claim damages from Genivar, due to the poor quality of the work performed by it and the costs incurred by Gold Bullion to have portions of the work done a second time. Gold Bullion also intends to institute action against Genivar to recover data and documents in Genivar’s possession that belong to Gold Bullion and which Genivar has failed to return.

Gold Bullion paid approximately $1.7 million to Genivar in connection with this work over a period of three years, but stopped making payments in May 2011 due to Gold Bullion’s dissatisfaction with the quality of the work.

About Gold Bullion Development Corp.

Gold Bullion Development Corp. is a TSX Venture-listed junior natural resource company focusing on the exploration and development of its Granada Property near Rouyn-Noranda, Québec. Additional information on the Company’s Granada gold property is available by visiting their website at www.GoldBullionDevelopmentCorp.com and on SEDAR.com.

For further information contact:

Frank J. Basa, P.Eng., President and CEO at 1-514-397-4000 or Progressive Investor Relations (Canada) at (604) 689-2881 or via email: [email protected]

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forwardlooking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.