Great Basin's 2010 revenue more than doubled

Toronto Stock Exchane listed Great Basin Gold Ltd.on Thursdayannounced earnings per share of $0.02 for Q4 2010 and revenue for Q4 2010 of $43 million with 31,911 Au eqv oz sold. Cash cost improved substitute for sand for construction19% quarter on quarter and revenue more than doubled in 2010 with the adjusted loss per share1 reduced by 69% to $0.05.

Operating results

Fourth quarter (Q4) 2010 gold production of 31,911 Au eqv oz2 from trial mining activities at the company’s Hollister project was in line with expectations and an increase of 190% over third quarter (Q3) 2010 results. Revenue for the quarter totaled $43 million and $100 million for the fiscal year, an increase of $66 million year on year. Cash costs for the quarter (inclusive of royalties) decreased by 19% to $690 (US$670) per Au eqv oz and 11% to $563 (US$546) per ton from Q3 2010 and were in-line with estimates for the quarter. The company’s Esmeralda mill processed 27,553 tons during Q4 2010 and recovered 21,901 Au eqv oz.

Recoveries for the quarter of 80% Au and 61% Ag are still below our targeted rate of 92% Au and 85% Ag due to the high metal content fouling the carbon in the process. This is being addressed by the installation of a carbon regeneration system and automation of certain components within the mill. The company achieved its first positive earnings per share of $0.02 during Q4 2010 (Q3 2010: $0.07 loss per share). The adjusted loss per share for the year ended December 31, 2010 decreased to $0.05, an improvement of 69% over the $0.16 adjusted loss per share reported in fiscal 2009.