GBS Gold Completes New Bought Deal $46.0 Million 3-Year Long-Term Debt and Redeems Previous Debt Due March 2009

TORONTO, ONTARIO--(Marketwire - May 27, 2008) - GBS Gold International Inc. (TSX: GBS.TO) ("GBS Gold" or the "Company") announces that it has completed the previously announced bought deal $46.0 million three year financing facility (all amounts expressed in Canadian dollars) due May 27, 2011. The proceeds of the offering were used to fully prepay the Company's $46.0 million 12% notes due on March 30, 2009.

Terms of the Notes

As announced on April 18, 2008, the finance facility consists of 46,000 units placed by Haywood Securities Inc. ("Haywood") for total proceeds of $46.0 million. Each unit consists of one $1,000 promissory note and 175 share purchase warrants. The notes have a term of three years ending May 27, 2011 with interest payable semi-annually at an annual rate of 12% for the first two years, increasing to 15% in the third year. Each share purchase warrant is exercisable for the purchase of one GBS Gold common share. If exercised on or before November 27, 2008, the price per share is $1.50. Thereafter, the warrants are exercisable at a price of $1.80 per share until May 27, 2010. If, at any time after May 27, 2009, the share price of GBS Gold trades above $2.50 per share for 20 consecutive business days, the Company can require warrant holders to exercise their warrants within 15 days.

GBS Gold can prepay the facility in whole or in part at any time after 12 months without penalty. The lenders have received a pledge of security over substantially all of the assets of the Company with certain exceptions relating to the ongoing conduct of the business.

Haywood received an agent's fee of 4%, half paid in cash and half paid in Underwriter's Units consisting, in the aggregate, of 621,621 GBS Gold common shares and 621,621 share purchase warrants exercisable at a price of $1.48 per share for a limited term of 30 days. Haywood has agreed to exercise all 621,621 share purchase warrants in the 30 day period.

Redemption of Previously Outstanding Notes Due March 2009

The Notes due on March 30, 2009 ("March 2009 Notes") were fully redeemed using the proceeds of the new notes. The 6,210,000 share purchase warrants that were issued in connection with the March 2009 Notes remain outstanding and are exercisable until their expiry on September 30, 2008. On April 22, the Company announced the reduction in the exercise price of these share purchase warrants to $1.47 per share effective May 6, 2008 for a period of 30 days ending on June 4, 2008. If the warrants are not exercised during this period, the exercise price will revert to the original price of $3.75 per share.

The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer for sale of securities, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.

About GBS Gold International Inc.

GBS Gold is an emerging gold producer with 2.5Moz of Indicated Resources and 1.6Moz of Inferred Resources of gold at its Union Reefs Operations Centre located in historically productive goldfields in the Northern Territory of Australia. GBS Gold produces gold through its modern dual-mill 2.5Mtpa Union Reefs processing plant. The Company expects to commence production at its Tom's Gully operation in 2008 and its Cosmo Deeps operation in 2010 to increase production to an annualized rate of up to 250,000 ounces, and to construct a GEOCOAT(R) circuit, a heaped bio-oxidation process, at the Union Reefs plant to treat refractory ores and further increase gold production from the Union Reefs Operations Centre to 300,000 ounces per year. The Union Reefs plant is adjacent to the main Stuart Highway and the trans-continental Adelaide-Darwin railway line, and is on the Northern Territory power grid. Within 125km trucking distance of the Union Reefs plant, GBS Gold has consolidated over 3,500km2 of prospective tenements and gold deposits and also holds gold exploration properties in Western Australia and Canada. GBS Gold trades on the Toronto Stock Exchange under the symbol "GBS".

The Company's mineral resources comprise indicated resources of 22.5 million tonnes at 3.4g/t for 2.5 million ounces of contained gold and inferred resources of 20.3 million tonnes at 2.5g/t for 1.6 million ounces of contained gold as set out in its technical reports (refer below) and news release dated May 13, 2008. The Company has filed on May 8, 2008 a technical report entitled "GBS Gold International: Burnside, Union Reefs, Maud Creek and Moline Projects, Northern Territory, Australia" dated February 2008 and authored by Jeames McKibben and Christine Standing of Snowden Mining Industry Consultants Pty Ltd and Heath Gerritsen of HG Mine Design Pty Ltd. The Company has also filed two technical reports on its Tom's Gully project being a technical report entitled "Form 43-101 Technical Report on the Tom's Gully Project" authored by Paul Payne of Resource Evaluations Pty Ltd dated and filed on January 14, 2008 and a technical report entitled "Technical Report on the Mineral Reserves of the Tom's Gully Gold Mine" authored by Heath Gerritsen of HG Mine Design Pty Ltd dated December 2007 and filed on January 31, 2008.

The Company has completed feasibility studies on its Tom's Gully and Cosmo Deeps projects, and a life-of-mine study on its operating Brocks Creek underground mine, all of which have declared mineral reserves in accordance with the above technical reports. Where the Company has not completed a feasibility or life of mine study on a particular project, there is no certainty that such project will be economically successful. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Any potential updates to GBS Gold's mineral resources discussed in this news release are conceptual in nature and subject to further drilling, analytical and test work and/or data verification. All estimates of updates to mineral resources are based on the drilling results and resource modeling described herein.

Certain disclosures in this release, including management's assessment of GBS Gold's plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to GBS Gold's operation as a mineral development company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: fluctuations in gold prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; general market conditions; the uncertainty of future profitability; and the uncertainty of access to additional capital. Full descriptions of these risks can be found in the Company's Annual Information Form available on the SEDAR website, www.sedar.com. Readers are cautioned not to place undue reliance on forward-looking statements. GBS Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

The TSX does not accept responsibility for the adequacy or accuracy of the information contained herein.

Contacts

Ted Mayers
In Toronto, Canada: GBS Gold International Inc.
Executive Vice President, Business Development
(416) 777-1508

Peter Kerr
In Perth, Australia: GBS Gold International Inc.
Chief Financial Officer
+61 8 9492 2500
Email: gbs@gbsgold.ca
Website: www.gbsgold.com