GBS Gold Divests Its Share Investment in MDN Inc.

TORONTO, ONTARIO, Jun 19 (MARKET WIRE) --
GBS Gold International Inc. (TSX: GBS) ("GBS Gold" or the "Company") has
realized cash proceeds of C$7.6 million from the sale of its shareholding
in MDN Inc. The decision to sell its financial investment is based upon
GBS Gold's strategy to focus on continuing to grow production from its
existing Australian operations and to divest assets which are no longer
considered core to this strategy. The proceeds from the sale will be used
to fund the Company's internal development projects. GBS Gold will
continue to hold its investment in warrants of MDN Inc., which may be
divested at a later date.

Mr. Gil Playford, Chairman of GBS Gold, commented "GBS Gold has decided
to sell its shareholding in MDN Inc. as this investment is no longer part
of the Company's strategy. The proceeds derived from the sale can be more
effectively deployed to fund GBS Gold's internal growth projects, in
particular the development of the large Cosmo Deeps gold deposit."

About GBS Gold International Inc.

GBS Gold is an emerging gold producer with 2.5 million ounces of
Indicated Resources and 1.6 million ounces of Inferred Resources of gold
at its Union Reefs Operations Centre located 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 at its Cosmo Deeps operation in
2010 to increase production to an annualized rate of 250,000 ounces, and
to subsequently commence production from the Maud Creek refractory gold
project to 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. 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:
In Toronto, Canada:
GBS Gold International Inc.
Ted Mayers, Executive Vice President, Business Development
(416) 777-1508

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

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