Business Review Update

TORONTO, ONTARIO, Aug 27 (MARKET WIRE) --
GBS Gold International Inc. (TSX: GBS) ("GBS Gold" or the "Company")
provides the following preliminary results of its internal business
review.

Operations Review

As previously announced, GBS Gold's new management team recently
commenced a detailed review of the Company's operations, internal growth
projects and financing requirements. The review is focused on the
Company's short term mine schedule and cash position following recent
production disruptions in the Brocks Creek underground mine and the
negative impact on operating cashflow. Mine plans are being finalized to
stabilize production and operating cashflows for the remainder of the
year.

Preliminary results of the review indicate that gold production for 2008
will be in line with previous guidance of 130,000 ounces. For 2009,
however, the Company will focus on its higher grade underground mines,
specifically the Brocks Creek and Tom's Gully mines, and production will
be lower than in 2008. The objective of this strategy is to focus on
lower risk and higher margin production, thereby improving operating
cashflows and reducing cash operating costs. The Brocks Creek mine
produced approximately 23,600 ounces in the first half of 2008 and
further drilling from underground is planned in the current quarter to
further delineate the orebody at deeper levels and optimize economic
continuity. At the Tom's Gully project, gold pours have commenced and
production levels are forecast to increase to an annualized rate of
35,000-40,000 ounces by the end of this year.

As previously reported, cash operating costs for the first half of 2008
were US$738/oz reflecting inflationary cost pressures, the production
strategy of milling low-grade material to utilize the capacity of the
Union Reefs plant, transportation and energy costs, and the high A$/US$
exchange rate. Given this cost performance, cash operating costs for 2008
are expected to be in excess of previous guidance of US$630-660/oz.
Corrective actions to reduce cash expenditures have been taken, including
suspension of resource definition drilling and exploration activities,
and employee redundancies. Cash and bullion holdings are below previously
anticipated levels at approximately C$11 million. The Company is
therefore pursuing various financing options to supplement working
capital and to fully enable the operation and development of its projects
and large gold resource base.

A further update regarding the final outcomes of the business review will
be provided in early September.

Base Metals Projects

Following the recently announced strategic alliance with RBS Sempra
Commodities, an initial drilling program has been completed at the Iron
Blow and Mt Bonnie polymetallic deposits. Five holes have been drilled
into the Iron Blow deposit and two holes into the Mt Bonnie deposit.
Preliminary assay results from this drilling are in line with significant
historical drilling results and resource estimates, and indicate strong
potential for robust underground mining operations. Full assay results
from the first holes into the Iron Blow deposit are due for release next
week.

Scoping work has now commenced to assess the results and the potential
for the deposits to be developed into underground base metal mining
operations. The next phase of work involves metallurgical testwork,
further drilling, preparation of a formal resource estimate and
commencement of a feasibility study.

Within the strategic alliance with RBS Sempra Commodities, GBS Gold
retains ownership and control of its base metals assets and has
flexibility to realize value from these assets via direct sale, farm-out,
joint ventures, spin-off or other divestment strategies. RBS Sempra
Commodities will retain involvement as marketer or off-taker of future
base metals production from these assets. The proceeds expected to be
realized from these strategies are planned to be invested in GBS Gold's
core gold business.

Cosmo Deeps Project

The business review has also focused on expanding the scope of the Cosmo
Deeps underground project to consolidate it with the adjacent Chinese
"big pit" area to form a future mining centre along a 5km strike length.
The previously announced consolidated resource estimate for this area is
tabulated below:

-----------------------------------------------------
Indicated Resources Inferred Resources
-----------------------------------------------------
Tonnes g/t Ounces Tonnes g/t Ounces
---------------------------------------------------------------------------
Cosmo Deeps 4,244,000 4.9 670,000 4,503,000 3.9 570,000

Chinese "big pit" area 7,195,000 1.7 387,000 2,866,000 1.6 151,000
-----------------------------------------------------
Total 11,439,000 2.9 1,057,000 7,369,000 3.0 721,000
---------------------------------------------------------------------------

Note: Reported cut-off grades are 2.0g/t for Cosmo Deeps and 1.0g/t for the
Chinese "big pit" area.

The Cosmo-Chinese area has the potential to be a long term mining
centre for the Company. The area comprises the large Cosmo Deeps
underground mine project which, based on the feasibility study completed
earlier this year, is expected to be a robust mining operation producing
75,000-100,000 ounces per year, plus the Chinese "big pit" area which
contains a substantial gold resource which is targeted to form the basis
of a large open pit mining operation.

A feasibility assessment will be completed on the consolidation of the
Cosmo Deeps and Chinese operations, which has the potential to produce in
excess of 150,000 ounces per year. As part of this strategy, current
mining activities in the southern part of the Chinese area may be
curtailed pending review of a larger open pit mining strategy in the
area. In addition, as part of the review process, potential capital cost
savings have also been identified for the removal of water and tailings
from the existing Cosmo open pit to enable underground mine development
to commence in late 2009 as planned.

About GBS Gold International Inc.

GBS Gold is a junior gold producer with 2.7 million ounces of Indicated
Resources and 1.7 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 2.5Mtpa Union Reefs
processing plant. The Company has recently commenced gold production at
its Tom's Gully operation and plans to develop its Cosmo Deeps
underground mine in 2009-10. GBS Gold has consolidated over 3,500km2 of
prospective tenements and gold deposits and also holds gold exploration
properties in Western Australia. The Company trades on the Toronto Stock
Exchange under the symbol "GBS".

The drilling results and technical disclosures in this news release
regarding GBS Gold's properties were approved by Alf Gillman, an employee
of GBS Gold and a qualified person under National Instrument 43-101. The
Company's mineral resources comprise indicated resources of 26.8 million
tonnes at 3.1g/t for 2.7 million ounces of contained gold and inferred
resources of 21.5 million tonnes at 2.4g/t for 1.7 million ounces of
contained gold as set out in its technical reports (refer below) and news
releases dated May 13 and July 2, 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.

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:
GBS Gold International Inc.
Gil Playford
Chairman
+61 8 9492 2500

GBS Gold International Inc.
Peter Breese
CEO and President
+61 8 9492 2500

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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