The information contained in this report is drawn from sources believed to be reliable, but the accuracy or completeness of the information is not guaranteed, nor in providing it does Loewen, Ondaatje, McCutcheon Limited assume any responsibility or liability. This report is not to be construed as an offer to sell or the soliciation of an offer to buy any securities. The inventories of Loewen, Ondaatje, McCutcheon Limited, its affiliated companies and the holdings of their respective directors and officers and companies with which they are associated, may from time to time include the securities mentioned in this report.

In addition to our website LOM's research is electronically available on Bloomberg, First Call and Multex.

Great Basin Gold Ltd.(GBG - TSXV $1.94) Speculative BUY

Catherine Gignac416-964-4422

cgignac@lomltd.com

January 6, 2003

Great Basin Gold is a gold exploration company active in Nevada and South Africa. A bankable feasibility study will be completed in the coming year on the newly-acquired advanced-stage Burnstone gold project in South Africa. Great Basin's partner Hecla Mining is advancing the high-grade Ivanhoe deposit in Nevada. Hecla plans to spend US$21.8 million to advance the project to production by August 2004, with Great Basin retaining a 50% carried interest and production royalty.

(Website: www.hdgold.com)

Company Description

Growth in Major Gold Camps

The new Burnstone acquisition in South Africa positions the Company in a prolific gold district with a local partner. Great Basin will complete its bankable feasibility study by February 2004, to bring the 17.3 million ounce resource into production by 2006, at an initial rate of 144,000 ounces per year, and operating costs of US$170/oz.

Hecla Mining is advancing Great Basin's Ivanhoe project in Nevada towards production starting in the latter part of 2004, at the rate of 193,000 ounces annually. The Ivanhoe property is well-located on the Carlin Trend in northern Nevada between Newmont Mining's high-grade Ken Snyder mine to the north and Barrick Gold's two-million-ounce-per-year Goldstrike property to the south.

We value the Company mainly on the net present value of its forecast share of operating cash flow from the Ivanhoe Project ($1.53 per share) and its Burnstone Project ($1.35 per share), plus working capital. The one-year target price of $3.00 per share is based on a US$300/oz gold price. A long-term average gold price of US$325/oz indicates a target value of about $3.30 per share.

Great Basin Gold's success lies in management's ability to create value in the acquisition and advancement of properties to feasibility, and then commercial production. We recommend the shares of Great Basin Gold as Speculative BUY.

MINING & MINERALS

52-Week Range $2.50-$0.80Basic S/O (mm) 46.8

Mkt. Cap. (mm) $90.8

Target Price 12-Month $3.00

Working Capital (mm) $17.4

Source: stockwatch.com

Diluted (mm)* 67.8Fully Diluted (mm) 91.5

Fiscal Y/E Dec 31Book Value (mm) $22.9

Copyright © 2003, Loewen, Ondaatje, McCutcheon Limited.Loewen, Ondaatje, McCutcheon Limited has acted in an underwriting and/or financial advisory capacity for Great Basin Gold Ltd. within the past 24 months.

All Figures in C$ Unless Otherwise Noted. Financial Data at September 30, 2002.

* Diluted shares are used herein for valuation purposes and include 21 million shares to be issued to Southgold Exploration as part of the Burnstone Project acquisition.

Investment Research

Loewen, Ondaatje, McCutcheon Limited

Burnstone Project, South Africa

Details of the Acquisition

Canadian/South Africa Transactions

Black Economic Empowerment

Scoping Study

History

Ivanhoe Project, Nevada

Summary Valuation

Discounted Cash Flow

Industry Comparables

Corporate and Financial

Appendix A - Ivanhoe Economic Scenario

Appendix B - Burnstone Economic Scenario

3

5

5

6

7

8

9

10

10

11

13

14

15

HEAD OFFICEHazelton Lanes, East Tower

55 Avenue Road, Suite 2250Toronto, Ontario M5R 3L2

416-964-44551-800-567-1566

Fax 416-964-4490

MONTREAL1200 McGill College Avenue

Suite 1900Montreal, Quebec H3B 4G7

514-393-4600Fax 514-879-9067

MEMBERSToronto, Montreal and

Canadian Venture Exchange

Investment DealersAssociation of Canada

CIPF

WEBSITEwww.lomltd.com

The information contained in this report is drawn from sources believed to bereliable, but the accuracy or completeness of the information is not guaranteed, norin providing it does Loewen, Ondaatje, McCutcheon Limited assume any responsibilityor liability. This report is not to be construed as an offer to sell or the solicitation ofan offer to buy any securities. The inventories of Loewen, Ondaatje, McCutcheonLimited, its affiliated companies and the holdings of their respective directors andofficers and companies with which they are associated, may from time to time includethe securities mentioned in this report.

Copyright © 2003, Loewen, Ondaatje, McCutcheon Limited.

GREAT BASIN GOLD LTD. Growth In Major Gold Camps 3

BURNSTONE PROJECT, SOUTH AFRICA

Source: Great Basin Gold Ltd.

EXHIBIT 1: LOCATION MAP

The Burnstone project is located about80 km southeast of Johannesburg in theGauteng Province of South Africa.Geologically it is situated in the South

Rand gold field in the northeastern portion of the prolific Witswatersrand Basin. Over 1.5billion ounces of gold have been recovered from this basin in South Africa since the late1880’s. The East Rand gold field occurs to the north, and the Evander gold field is about 60km to the east. The South Rand gold field is likely the geological southwestern extension ofthe Evander gold field.

LOEWEN, ONDAATJE McCUTCHEON LIMITED JANUARY 6, 2003 4

Source: Great Basin Gold Ltd.

EXHIBIT 2: EASTERN GOLD FIELDS

Southgold Explorationcompleted a pre-feasibilitystudy earlier this year for thispotential underground mine.Great Basin Gold estimatesit will spend US$5.9 millionto complete a bankablefeasibility study by January31, 2004. Subsequent toconstruction, the mine couldstart production within twoyears, at an estimated initialrate of 144,000 ounces peryear.

Source: Great Basin Gold Ltd.

EXHIBIT 3: BURNSTONE PROJECT INFRASTRUCTURE

The Burnstone project iscomprised of sixteen farmscovering a 400 km2 areasurrounding the village ofBalfour. Most of the previouswork at the project wasfocused in Area 1, about 6.5km southeast of Balfour. Thevillage is supported byexcellent road and railaccess. National power gridlines cross the Burnstoneproject area. Independentconsultants indicate that thewater main into Balfour hassufficient capacity for theproposed mine and millfacilities.

GREAT BASIN GOLD LTD. Growth In Major Gold Camps 5

DETAILS OF THE ACQUISITION

Great Basin Gold signed an option agreement in early November 2002, to acquire privately-held and South African-owned, Southgold Exploration. Southgold has the right to acquirean 80% interest in the Burnstone project. The remaining 20% interest in the project isbeing acquired by Tranter Investments, a Black Economic Empowerment (BEE) group. In aleveraged transaction, Southgold will accept Great Basin shares, warrants and US$3.25million in cash, for a total value of about US$26.3 million. Exercise of Great Basin warrantswould return US$7.9 million to Great Basin Gold. Southgold will hold 31% of GreatBasin's “diluted” shares and will have the right to two representatives on Great Basin'sboard (see page 13).

Upon signing of the formal agreement, Great Basin will pay US$1.25 million. In Stage 1 toApril 30, 2003, Great Basin will pay US$2.0 million, issue 10 million shares and 5 millionshare purchase warrants (US$0.75 for one year), to acquire a 49% interest in Southgold. InStage 2 to January 31, 2004, Great Basin will issue 11 million shares and 5.5 million sharepurchase warrants, to acquire the remaining 51% interest in Southgold. Great Basin agreesto complete a bankable feasibility study by January 31, 2004. If delayed, it can defer half ofits Stage 2 payments to July 31, 2004. A 2% finder's fee will be payable by Great Basin atStage 1.

* Great Basin share price at time of transaction was C$1.13Source: LOM Ltd.

EXHIBIT 4: BURNSTONE PROJECT ACQUISITION

CANADIAN/SOUTH AFRICAN TRANSACTIONS

There have been several transactions completed between Canadian juniors and SouthAfrican companies with precious metal assets in the last year or so. Gold transactionsinvolved Thistle Mining, Great Basin Gold and Bema Gold Corporation, and platinumtransactions involved Anooraq Resources (an associated company of Great Basin Gold),African Minerals (privately-held by Robert Friedland) and Platinum Group Metals. PlacerDome was one of the first Canadians into the country when it announced in late 1998, a

Cash

Stage 1(30-Apr-03)

$2,000,000

Stage 2(31-Jan-04)

--

GBG Shares 10,000,000 11,000,000

On Signing

$1,250,000

--

Est. Value(US$)

$3,250,000

$15,187,200

Est. Value*(US$/unit)

--

$0.72

GBG Warrants 5,000,000 5,500,000-- $7,875,000 $0.75

Total $26,312,200

LOEWEN, ONDAATJE McCUTCHEON LIMITED JANUARY 6, 2003 6

1 Value excludes Bema’s share of equity financing of acquisition.2 Value includes US$8.00/oz five-year royalty on production.

Source: LOM Ltd.

EXHIBIT 5: CANADIAN / SOUTH AFRICAN TRANSACTIONS

BLACK ECONOMIC EMPOWERMENT

The opportunity for Great Basin to acquire the Burnstone project is partly due to thedramatic changes underway in South Africa to broaden ownership of resource assets. Thenew Mining Charter, the government’s Minerals Bill and its Money Bill are designed tostimulate investment and development of the country’s resources. Mining is very importantto the economic health and future of South Africa. In 2001, primary minerals (mainlyplatinum group metals, gold and coal) contributed 34% to South Africa's merchandise tradeexports, or 60% if total beneficiated products are included.

Great Basin’s new partner, Tranter Investments, must fund its participating 20% interest todevelop the Burnstone project. Under certain conditions, it also has the right to purchasean additional 6% participating interest. This is in line with the South African government'svision for its Black Economic Empowerment policy.

joint venture with Western Areas to develop the South Deep project. The pace oftransactions has been stepped-up by the new charter and bills, which so far appear successfulin stimulating interest in resource development and capital investment in the country. TheSouth Deep and President Steyn mines were in operation at the time of the Canadianacquisitions.

Great Basin’s acquisition of Burnstone appears inexpensive at US$1.90 per ounce ofgeological resource, relative to some comparable transactions. We believe that the valueof transactions will continue to rise as competition is expected to increase for preciousmetal assets in the country, particularly by project-starved mid-tier producers.

Company

Bema Gold Corporation1

Date

Oct-02

Purchase Value

(US$000)

$67,000

Placer Dome/Western Areas Apr-99 $248,000

Mine/Project

EAGC/Chimera

South Deep

Share of Total Resources

(000oz)

14,000

38,600

Value/Resource(US$/oz)

$4.79

$6.42

Great Basin Gold Ltd. Nov-02 $26,312

Thistle Mining Inc.2 Feb-02 $33,650

Burnstone

President Steyn

13,848

18,057

$1.90

$1.86

GREAT BASIN GOLD LTD. Growth In Major Gold Camps 7

SCOPING STUDY

A geological resource estimate completed for Great Basin by independent consultants,GeoActiv (Pty) Ltd., returned an undiluted resource in two areas, of 34.57 million tonnesgrading 15.54 g/t, containing 17.32 million ounces in-situ.

Source: GeoActiv (Pty) Ltd., August 2002

EXHIBIT 6: BURNSTONE PROJECT GOLD RESOURCE ESTIMATE

EXHIBIT 7: BURNSTONE PROJECT DRILL HOLE PLAN

Source: Great Basin Gold Ltd.

Area

1 - Indicated

Gold(g/t)

17.47

Gold(000 oz)

5,845

2- Inferred 14.71 11,480

Tonnes (000)

10,404

24,270

15.54 17,32534,674Total/Average

LOEWEN, ONDAATJE McCUTCHEON LIMITED JANUARY 6, 2003 8

In November 2002, independent consultants, The Mineral Corporation, completed a ScopingStudy for Southgold Exploration and Great Basin Gold. The study focused on the economicsof developing Area 1, which contains an estimated 19.23 million tonnes grading 5.25 g/t,containing 3.12 million ounces. This was heavily based on GeoActiv's diluted resource forArea 1, of 23.47 million tonnes grading 7.75 g/t (compared with the undiluted grade of17.47 g/t shown in Exhibit-6).

Source: The Mineral Corporation November 2002; GeoActiv (Pty) Ltd. August 2002.

EXHIBIT 8: BURNSTONE PROJECT MINEABLE GOLD RESOURCE ESTIMATES

The Mineral Corporation Scoping Study used a gold price of US$300/oz, rand/US$ exchangerate of 10 and assumed that 3.12 million ounces of gold would be recovered. Throughputwas estimated at 2,500 mtpd, with annual production of 144,000 ounces initially, averagingabout 130,000 ounces over the 24-year mine life. Initial capital costs for undergroundproduction and ventilation shafts, were estimated at R506 million or US$50.6 million.Operating costs were forecast to average less than R300/tonne or US$175/oz, comparablewith the nearby Evander mine and other operations developing the Kimberley reef.Harmony’s Evander mine recovered 415,382 ounces at an average operating cost of R307/tonne milled or US$174/oz gold produced for the twelve months ended June 30th.

HISTORY

Starting in 1999, new management of Southgold Exploration assembled the package ofsixteen properties, with a focus on exploring and advancing the Burnstone project. Geologistshad previously identified the mineralized Kimberley Reef at surface, however, the goldgrade was low and the reef was misinterpreted to dip steeply to depth. About 108 coreholes were drilled in the project area from 1974-1993 by previous owners including Gencor,Gold Fields and Avmin, but Burnstone was never considered a high exploration priority.

Southgold drilled three holes in late 1999 and early 2000, and followed these up withfifteen holes in May-July 2002. Southgold’s drilling confirmed that the Kimberley Reef wasfolded into an antiform on the property, and in fact, mineralization occurred at depths ofonly 200-1,000 metres.

Area 1

Mineral Corp.

Gold(g/t)

5.25

Gold(000 oz)

3,124

GeoActiv (Pty) 7.75 5,845

Tonnes (000)

19,234

23,470

GREAT BASIN GOLD LTD. Growth In Major Gold Camps 9

Most South African gold mines are currently operating at depths below 2,000 metres.Improved technology in mining, ore-handling, refrigeration and ventilation has enabledprojects to be designed at much deeper levels, albeit at higher capital and operating costs.Avgold’s Target mine, Placer Dome/Western Areas South Deep mine and DurbanRoodepoort Deep's Argonaut project are being implemented or designed for depth of3,000-4,100 metres.

IVANHOE PROJECT, NEVADA

A detailed analysis of Great Basin’s Ivanhoe Project, currently being developed by seniorproducer Hecla Mining, was outlined in the LOM Ltd. report of September 4, 2002. Primarilydue to the early stage of the project and uncertainties regarding the market, a conservativegold price of US$275/oz was used. This indicated a value of $87.0 million or $1.87 perGreat Basin basic (46.5 million) share. Management’s success in acquiring a second projectto develop, improved market conditions, and adjustment for the new distribution of shares,prompts the use of a higher, albeit still conservative gold price of US$300/oz in this report.This indicates a higher value of $103.5 million or $1.53 per Great Basin diluted (67.8million) share (see Appendix-A).

LOEWEN, ONDAATJE McCUTCHEON LIMITED JANUARY 6, 2003 10

SUMMARY VALUATION

Two methods of valuation are addressed: net present value of forecast discounted cashflow, with accompanying sensitivities to gold price and exchange rate; and industrycomparatives. This analysis indicates a potential valuation range of $2.42-$4.11 for sharesof Great Basin Gold. The forecast target price of $3.00 per share is based mainly on thenet present value analysis.

DISCOUNTED CASH FLOW

Cash flows for the Burnstone project are discounted over ten years, resulting in aconservative valuation for the proposed 24-year mine. The net present value of forecastoperating cash flows, discounted by 15%, for both the Ivanhoe and Burnstone projectsequate to roughly $100 million each to Great Basin Gold, totally $195.1 million or $2.88per diluted share. The base case scenario assumes a long-term average gold price ofUS$300/oz and a rand/US$ exchange rate of 10. The outlook for the gold market isexcellent given the decline in primary mine production, which is uncorrectable for severalyears. Coupled with global fears of terrorism, war and weakening of the US economy, thegold price is poised to move much higher. Using a long-term average gold price of US$325/oz indicates a price level 15% higher at $3.31 per share. The strengthening of the randrelative to the US dollar in recent months has reversed somewhat a sharp downturnthrough 2001. Using a stronger rand/US$ exchange rate of 8.0 indicates a value 16% lowerthan the base case scenario to $2.42 per Great Basin share, which still 25% higher thancurrent price levels.

The North American producers trade at roughly 1-1.5x net present value of operatingcash flow, with the range heavily dependent on the gold price assumption, as well as market-perceived political and technical risk factors. We believe any potential market discount thatmay be applied for perceived South African mining risk for the Burnstone project would beoffset by a relative premium for North American production from the Ivanhoe project inNevada. A 1.5x net present value multiple would indicate a potential market value of over$4.00 per Great Basin share.

GREAT BASIN GOLD LTD. Growth In Major Gold Camps 11

Source: LOM Ltd.

EXHIBIT 9: DISCOUNTED OPERATING CASH FLOW SENSITIVITIES

Base Case - US$300/oz Gold Price; R/US$ 10 Exchange Rate

Est.Breakdown C$000 /Share

Ivanhoe (50%) 53% $103,494 $1.53Burnstone (80%) 47% $91,587 $1.35 Total Net Present Value 47% $195,082 $2.88

Upside - US$325/oz Gold Price; R/US$ 10 Exchange Rate

Est.Breakdown C$000 /Share

Ivanhoe (50%) 51% $115,409 $1.70Burnstone (80%) 49% $109,426 $1.61 Total Net Present Value 49% $224,835 $3.31

Downside - US$300/oz Gold Price; R/US$ 8.0 Exchange Rate

Est.Breakdown C$000 /Share

Ivanhoe (50%) 63% $103,494 $1.53Burnstone (80%) 37% $60,968 $0.90 Total Net Present Value 37% $164,462 $2.42

NPV @ 15% Discount

NPV @ 15% Discount

NPV @ 15% Discount

INDUSTRY COMPARABLES

There are a few producers and exploration companies with projects at the pre-producationand feasibility stage or with similar sized operations, such as those projects of Great BasinGold. Based on the information presented in the comparative table below, it is apparentthat Great Basin Gold is undervalued relative to its peers. Presumably the relatively highermarket capitalization of its peers is related to the higher visibility on the TSX exchange andNorth American investor exposure of comparable companies, and the relative newness ofSouth African junior investments. Using the average market capitalization of $279.2 millionindicates a prospective value of $4.11 per diluted Great Basin share.

LOEWEN, ONDAATJE McCUTCHEON LIMITED JANUARY 6, 2003 12

Great Basin Gold’s peers often focus on one major project at a time, such as EldoradoGold’s Kisladag project in Turkey and Gabriel Resources’ Rosia Montana project in Romania.SouthernEra Resources is a platinum-group producer expanding its operation in SouthAfrica. High River Gold is a joint venture partner in two mines in Russia. Bema Goldoperates the Julietta mine in Russia and recently announced the purchase of the GoldenReefs mines in South Africa.

Prices at January 3, 2003Source: Bloomberg, LOM Estimates.

EXHIBIT 10: SELECTED COMPANY COMPARISON TABLE

MarketSymbol/ Share 52 Week Shares Capital.

Company Exch. Price High Low (000) (C$ 000) Key Locations

Bema Gold Corporation BGO/T $2.13 $2.94 $0.53 255,559 $544,341 Russia, Chile, SAGabriel Resources GBU/T $4.64 $6.20 $2.85 114,089 $529,373 RomaniaEldorado Gold Corp. ELD/T $2.16 $2.20 $0.30 173,963 $375,760 Turkey, BrazilSouthernEra Resources SUF/T $6.75 $7.94 $2.68 51,828 $349,839 South AfricaMiramar Mining MAE/T $2.05 $2.23 $0.82 120,757 $247,552 NWT, NunavutNovagold Resources NRI/T $5.37 $6.20 $2.07 41,590 $223,338 AlaskaCrystallex International KRY/T $2.32 $3.85 $1.89 90,304 $209,505 VenezuelaMineFinders Corporation MFL/T $6.90 $7.22 $1.87 26,300 $181,470 MexicoHigh River Gold Mines HRG/T $2.22 $2.92 $0.65 80,903 $179,605 Manitoba, RussiaCumberland Resources CBD/T $3.01 $3.50 $0.80 38,365 $115,479 NunavutThistle Mining Inc. THT/T $0.58 $0.91 $0.18 197,234 $114,395 SA, Kazakh, Philipp. Average $279,151

Great Basin Gold GBG/V $1.94 $2.50 $0.80 46,845 $90,880 Nevada, South Africa Peer Average per Diluted GBG Share 67,845 $4.11

GREAT BASIN GOLD LTD. Growth In Major Gold Camps 13

CORPORATE AND FINANCIAL

Great Basin Gold had working capital of $17.4 million or $0.38 per share and no long-termdebt at September 30, 2002. Its book value was $22.9 million or $0.50 per share. GreatBasin is fully financed to production for its Ivanhoe project in Nevada, which is undergoinga two-year US$21.8 million development program by Hecla Mining. The only major financialobligation we forecast Great Basin Gold will incur is the development of the Burnstoneproject. It is assumed herein that the company will advance the project itself, partly financedthrough projected cash flow to be received from the Ivanhoe project. Additional financingof about $10 million would be required in 2004 prior to the start-up of Ivanhoe, anddependent on the final development schedule for Burnstone. Another financing option,could be to bring in a joint venture partner to develop Burnstone.

Great Basin Gold’s capitalization summary is shown below. The 21 million shares to beissued in two stages to Southgold Exploration as part of the Burnstone acquisition, havebeen added to the basic outstanding to obtain a “Diluted” figure of 67.8 million shares,which has been used for valuation purposes in this report. Management and directors willhold about 5.0% of the diluted shares (7.3% of basic). Southgold will control almost 31% ofGreat Basin Gold, and will have two representatives on its board. All shares issued toSouthgold will be subject to a voting trust agreement, to vote with Great Basin managementfor five years. Under certain conditions pertaining to the results of the bankable feasibilitystudy, Great Basin may issue additional shares to Southgold.

Source: LOM Estimates

EXHIBIT 11: CAPITALIZATION

• Basic Shares OutstandingShares to be issued to Southgold Exploration

• Diluted Shares Options Warrants

• Fully Diluted Shares

46,845,36421,000,00067,845,3645,386,100

18,242,32791,473,791

LOEWEN, ONDAATJE McCUTCHEON LIMITED JANUARY 6, 2003 14

APPENDIX AIVANHOE ECONOMIC SCENARIO

Inferred Resource: 719,000 tons Throughput - 600 tpd GBG Royalty Gold Price DependentDiluted Resource: 1,078,500 tons Mining Dilution - 50% Newmont Royalty - 3-5%Gold Grade - 1.788 oz/ton Gold Recovery - 95%Silver Grade - 7.00 oz/ton Silver Recovery - 90%

2005e 2006e 2007e 2008e 2009e

Ore Milled (000 tons) 219 219 219 219 203 Gold Produced (000 ounces) 179 179 179 179 165 Silver Produced (000 ounces) 920 920 920 920 851 Gold Equivalent Prod. (000 ounces) 194 194 194 194 179

Cash Cost (US$/eq. ounce) 114 114 114 114 114 Operating Cost incl. Royalties & Other (US$/eq. ounce) 134 134 134 134 134

Gold Price (US$/oz) 300 300 300 300 300 Silver Price (US$/oz) 4.92 4.92 4.92 4.92 4.92 Silver/Gold Ratio 61 61 61 61 61 C$/US$ Exchange Rate 0.64 0.64 0.64 0.64 0.64

To Great Basin Gold (50% C$000):Revenue 45,404 45,404 45,404 45,404 41,983 Operating Costs 20,260 20,260 20,260 20,260 18,733 GBG Royalty (est. US$50/eq. ounce) 1,892 7,567 7,567 7,567 6,997 Operating Profit 27,036 32,712 32,712 32,712 30,247 per Diluted ShareCapital Expenditures (sustaining only) 1,369 1,369 1,369 1,369 1,266 Cash Flow 25,668 31,343 31,343 31,343 28,982 per Diluted Share $0.36 $0.45 $0.65 $0.75 $0.71

Discount Rate 0% 5% 10% 15%Net Present Value Operating Cash Flow $155,419 $134,289 $117,314 $103,494 per Basic Share $3.32 $2.87 $2.50 $2.21 per Diluted Share $2.29 $1.98 $1.73 $1.53 per Fully Diluted Share $1.61 $1.39 $1.22 $1.07

Discount Rate 0% 5% 10% 15%Net Present Value Net Cash Flow $148,678 $128,443 $112,189 $98,957 per Basic Share $3.17 $2.74 $2.39 $2.11 per Diluted Share $2.19 $1.89 $1.65 $1.46 per Fully Diluted Share $1.54 $1.33 $1.16 $1.03

Source: Ross Glanville Report, April 2002; LOM Ltd. Estimates

GREAT BASIN GOLD LTD. Growth In Major Gold Camps 15

APPENDIX BBURNSTONE ECONOMIC SCENARIO

NB: Cash flows discounted over next ten years only.Source: Behre Dolbear & Company Report, November 28, 2002; LOM Ltd. Estimates

Diluted Resource: 19,234,000 tonnes Throughput - 2,500 mtpdGold Grade - 5.25 g/t Gold Recovery - 96%

2006e 2007e 2008e 2009e 2010e

Ore Milled (000 tonnes) 80 625 900 900 900 Gold Grade (g/t) 3.88 5.18 5.18 5.19 5.20 Gold Produced (000 ounces) 10 100 144 144 145 To Great Basin Gold (80%) 8 80 115 116 116 Cash Cost (R/tonne) 269 269 269 270 271 Operating Cost incl Royalty (US$/ounce) $227 $171 $171 $171 $172

Gold Price (US$/oz) 300 300 300 300 300 R/US$ Exchange Rate 10.00 10.00 10.00 10.00 10.00 C$/US$ Exchange Rate 0.64 0.64 0.64 0.64 0.64

To Great Basin Gold (80% C$000):Revenue 3,598 37,530 54,044 54,148 54,252 Operating Costs 2,726 21,391 30,803 30,916 31,030 Operating Profit 872 16,139 23,241 23,231 23,222 per Diluted Share $0.01 $0.24 $0.34 $0.34 $0.34Capital Expenditures 21,545 9,980 3,663 1,121 979 Cash Flow (20,673) 6,159 19,578 22,111 22,243 per Diluted Share ($0.30) $0.09 $0.29 $0.33 $0.33

Discount Rate 0% 5% 10% 15%Net Present Value Operating Cash Flow $202,128 $151,192 $116,256 $91,587 per Basic Share $4.31 $3.23 $2.48 $1.96 per Diluted Share $2.98 $2.23 $1.71 $1.35 per Fully Diluted Share $2.10 $1.57 $1.21 $0.95

Discount Rate 0% 5% 10% 15%Net Present Value Net Cash Flow $126,596 $69,401 $36,649 $17,494 per Basic Share $2.70 $1.48 $0.78 $0.37 per Diluted Share $1.87 $1.02 $0.54 $0.26 per Fully Diluted Share $1.31 $0.72 $0.38 $0.18