Great Basin Gold Ltd. (fka GBGLF)

[Damnsammit]

Investor Relations Call 9/5/2012

I just got off of the phone with Michael Curlook, IR rep from GBG, and asked him a few questions. A few people wanted me to ask him a question for them and I did my best to accommodate. Below are the questions that I asked, sorted by the people who wanted them asked, and then the responses he gave. All responses are paraphrased as I did not record this conversation, just took notes while we talked. He seemed very friendly and willing to help me understand the direction of the company and advised to call back if there was anything I wanted further clarification on.

Feel free to give Mr. Curlook a call if you have further questions. His number is 778-385-9332.

Have a good day, and GLTA! I think GBG is heading in the right direction!

-Sam

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Rookanignit:
Recently there has been some civil unrest in South Africa regarding their mining labor unions. Are there any concerns that this will affect the Burnstone mine?

The unrest was between two unions fighting, which was unusual. GBG employs workers from the larger of the two - NUM (National Union of Mineworkers), but not the AMCU (Association of Mineworkers and Construction Union). The unrest appears to have been quelled as of today.

See Article here:
http://www.foxbusiness.com/news/2012/09/05/south-africa-gold-mine-strike-ends-minister-says-companies-must-improve/


Goldbooty:
I believe the press release answered this yesterday, but can you give me a projected percentage increase in production in light of the recent upgrades to the equipment and prospects?

We will not make projections at this time, or give any more information than the press release stated.

See Press Release here:
http://ih.advfn.com/p.php?pid=nmona&article=54046605&symbol=GBG

BooDog:
Is there a short list for a new CEO? Is Lou van Vuuren in the running?

At this time there are no other candidates for CEO. The main goal is the financing of the company and that is the primary business of the CFO. Van Vuuren is believe to be the interim CEO until the end of the year at the minimum.


Did former CEO, Ferdi Dippenar, receive a severance package?

Could not answer the question. Stated he did not know, but reiterated that the company’s number one focus is reducing costs.


Damnsammit:
I am unable to find any sources of insider buying. Is this the case or can you point me in the right direction? At these levels it seems like a great opportunity.

The last time insider buying was done to raise equity was in March (I believe he meant June judging from the link below) and several executives exercised the right to buy. He stated that Canadianinsider.com is the best resource to see insider buying, but noted that it appears no one has been buying as of right now.

Link:
http://canadianinsider.com/node/7?menu_tickersearch=gbg


The conference call on the 15th of August discussed several strategies of eliminating debt and all focused on increasing shareholder value. Dilution was not discussed, is this option completely off the table?

All options are possible, but he strongly believes that this is not going to happen as that would deter them from the goals they are trying to achieve.

Requirements for US stocks on the NASDAQ require a share price of $1+, as a Canadian company does GBG have to follow that? If so, is a reverse split likely?

Ooops. He made me look stupid. This is not listed on NASDAQ and I didn’t notice that, but there is no requirements on the New York Market to stay above $1, just in case anyone else was curious lol

Is Bankruptcy a possible avenue?

He said since the numbers are not currently out that he is not entirely sure, but again reiterated that the sale of one of the mines or the entire company would likely be the direction instead of Bankruptcy. We also discussed that the sale of the Hollister mine is likely going to be the first step in the event that they cannot secure liquidity. He pointed me back to the press release to reiterate that they are very serious in evaluating the sales of the mines and have hired an independent bank to value their assets.

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