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HEADS OF AGREEMENT

THIS AGREEMENT made as of  April 2005

|BETWEEN: |                                
|-------- | -------------------------------
|         | TRANTER INVESTMENTS (PTY) LTD  
|         |                                
|         | (Tranter)                    
|         |                                
|AND      |                                
|         |                                
|         | SOUTHGOLD EXPLORATION (PTY) LTD
|         |                                
|         | (Southgold)                  
|         |                                
|AND      |                                
|         | GREAT BASIN GOLD LIMITED       
|         |                                
|         | (GBG)                        

WHEREAS:

|A. | Tranter is a 100% owned and controlled black economic
      empowerment (BEE) company, the current shareholders of which are four
      historically disadvantaged South Africans (HDSAs);                                                                                                                                                                                                                                                                                                                                                                              
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|B. | Southgold is a wholly-owned subsidiary of GBG and is
      currently completing prospecting operations on its Burnstone Gold Project
      located in the Balfour area, the mineral rights of which are
      diagrammatically set out in Schedule A (the Burnstone Project) and are
      separately listed in Schedule B. The term Burnstone Project as used in
      this Agreement shall include all permits, licences, approvals, consents,
      certificates, registrations and other authorizations in relation to the
      Burnstone Project held by Southgold;
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|C. | This Heads of Agreement (the Agreement) sets out the
      terms and conditions upon which Tranter shall acquire a 26% interest in
      certain properties forming the subject matter of the Burnstone Project and
      the terms and conditions upon which it is proposed that Tranter acquire a
      15% equity interest in Southgold, with an option to increase its interest
      to 26% within a period of approximately 9 years. The transactions
      described in this Agreement are collectively referred to as the BEE
      Transactions.                

NOW THEREFORE, the parties hereto covenant and agree as
  follows:

|1. | BEE Transactions
|-- | ----------------
|   |                 
|   | (a)             

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| |  | (i)  | Initial Acquisition. On completion of a bankable
        feasibility study in relation to the Burnstone Project, Tranter will acquire
        15% of the issued share capital of Southgold (the Initial Shares)
        from GBG (through its affiliate). The purchase price will be the value
        of the shares determined by taking the net present value of 15% of the
        Burnstone Project as determined by a valuation derived from the bankable
        feasibility study and the parameters of the valuation will be those that
        would ordinarily be applied by North American mining analysts when valuing
        South African gold deposits which are similar to the Burnstone Project
        and adjusting that figure for any other net assets or liabilities of Southgold.
        In the event that GBG is not required to provide funding for the acquisition
        by Tranter of the Initial Shares as contemplated in Section 1(a)(iv),
        Tranter shall be allowed a discount on such purchase price equal to the
        lesser of 10% or R2,000,000.
| |  | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |  | (ii) | Option. Tranter will have the option (the Option)
        to subscribe for additional Southgold treasury shares such that it will
        acquire an additional number of shares which when included in the then
        outstanding shares will constitute 11% of the then issued share capital
        of Southgold (the Option Shares) and thereby to increase its
        equity interest in Southgold to a total of 26%. The Option will be exercisable
        (in whole only, and not in part) by Tranter on or before 30 April 2014
        by providing notice to Southgold to this effect any time before 30 April
        2012 and providing evidence of the requisite financing by no later than
        30 April 2013. The acquisition cost of the Option Shares will be:                                                                                                                                                                                                                                                                                                         

| | A. | 11% of the aggregate of the net asset value of Southgold
      (excluding the value, if any, of Tranters Joint Venture Interest as
      contemplated in section 1(a)(ii) below) at the time of exercising the
      Option (the parameters of such valuation calculation being those that
      would ordinarily be applied by North American mining analysts when valuing
      South African gold deposits which are similar to or the same as the
      Burnstone Project); and
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | B. | the transfer, without payment by Southgold of additional
      consideration, of the Tranters Joint Venture Interest to Southgold as
      contemplated in section 1(a)(iii) below.                                                                                                                                                                                                                                                                                                

| | (iii) | Joint Venture. Tranter and Southgold will, with
      effect from 29 April 2005, enter into a separate unincorporated joint
      venture (the Joint Venture) in terms of which Tranter will acquire a
      right to take transfer (with Ministerial approval) of a 26% undivided
      ownership interest (the Joint Venture Interest) in the new order rights
      issued in respect of the properties (the Joint Venture Properties) which
      form the subject matter of Southgolds unused privately held old order
      mineral rights in relation to the Burnstone Project. The Joint Venture
      will be for the purpose of exploring and developing the Joint Venture
      Properties and, if so
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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determined, constructing and operating
  a mine thereon. The Joint Venture will be managed by a management committee
  comprising two representatives of each party. Each partys representative
  shall have such number of votes equal to the partys interest in the Joint
  Venture. All operations in connection with the Joint Venture shall be carried
  out by an operator, whom will be appointed by the management committee. Each
  party shall elect whether to contribute to each annual work program and budget
  and will suffer pro rata dilution if it fails to do so, provided that Tranter
  shall have a carried interest until a bankable feasibility study has been prepared
  after which time it shall be subject to program election or dilution. The detailed
  terms of the Joint Venture shall be settled by the parties, or in the event
  of a dispute, determined by an experienced South African mining lawyer selected
  by them, who shall act as an expert and not as an arbitrator and whose decision
  shall be final and binding on the parties. If Tranter exercises the Option,
  the Joint Venture Interest will be converted into equity in Southgold pursuant
  to the Option terms, at which time the Joint Venture would be terminated.

| | (iv) | Acquisition Funding for Tranter.
| | ---- | --------------------------------
| |      |                                 
| |      | A.                              
| |      |                                 
| |      | B.                              

| |  |  | a) | ZAR75,000 on signature of this Agreement by Tranter;
        and
| |  |  | -- | ----------------------------------------------------------------
| |  |  |    |                                                                 
| |  |  | b) | ZAR125,000 on Closing.                                          

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| | C. | Tranter will approach local funding institutions,
      including, but not limited to New Africa Mining Fund and the Industrial
      Development Corporation, to raise capital to repay (a Refinancing) the
      Loan Funding. GBG will consider providing credit support to these
      institutions in respect of the Refinancing, but is not bound to provide
      such credit support. Failing such Refinancing, the Loan Funding will be
      repaid by Tranter out of the revenues, if any, receivable by it from time
      to time from Southgold and/or the Joint Venture.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | D. | In the event that all the Loan Funding is repaid pursuant
      to a Refinancing, GBG shall, as an early repayment bonus, adjust the
      amortization schedule for such Loan Funding to reduce the aggregate
      principal amount thereof by an amount equal to the lesser of 10% of the
      original principal amount and R2,000,000.                                                                                                                                                                                                                                             
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | E. | Tranter will apply any funding received by it as a result
      of any other transaction undertaken by it subsequent to, or during the
      course of, the BEE Transactions to repay any outstanding portion of the
      principal and interest of any funding provided by
GBG.                                                                                                                                                                                                                                                                                                        

| | (v)  | Capital Expenditure. GBG and Tranter will each
        be required to fund the mine development capital expenditure requirements
        of the Burnstone Project pro rata in accordance with their respective
        interests. Tranter will be required to raise its own capital in order
        to fund its pro rata capital expenditure contribution. To the extent that
        debt funding raised by Tranter for such capital expenditure requirements
        ranks ahead of the Loan Funding, Tranter may retain 10% of the dividends
        and joint venture distributions accruing from time to time to Tranter
        from Southgold and/or the Joint Venture, after making all repayments then
        due in respect of such debt funding and will be obliged to apply the remaining
        balance, if any towards repayments to GBG of the Loan Funding.                                                                                                                                                                                              
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | (vi) | Maintenance of BEE credentials. In order to ensure
        that Tranter maintains its broad-based BEE participation, various legal
        mechanisms will be put in place to restrict the ability of Tranter to
        dispose of the Initial Shares, the Option Shares and the Joint Venture
        Interest (collectively, the Tranter Holdings) and to restrict
        the ability of the shareholders of Tranter to dispose of their respective
        shares in Tranter, where such disposal would result in Southgold or Tranter,
        as the case may be, ceasing to satisfy the requisite BEE requirements,
        as they may be amended from time to time. The principal mechanism in this
        regard will be for the Tranter Holdings to be held by a trust, with any
        breach of the trust provisions resulting in Tranter being replaced by
        another suitably-qualified BEE company as beneficiary of the trust. Similar
        restrictive provisions will be required in relation to the shareholders
        of Tranter itself.
| |     
| |     

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| | (b) | The BEE Transactions will be completed at a closing (the
      Closing) held at the office of GBGs Canadian counsel, McCarthy Tétrault
      LLP, at 1300 777 Dunsmuir Street, Vancouver, British Columbia, at 10:00
      a.m. (Vancouver time), or at GBGs election, at the offices of GBGs South
      African legal counsel, at 10:00 a.m. (South African time) on the earlier
      of (i) 30 June 2005 and (ii) the first practicable business day
      (Saturdays, Sundays and holidays excluded) after GBG, Southgold and
      Tranter agree that all of the Resolutive Conditions and Conditions
      Precedent referred to below have been satisfied or such other place, date
      and time as may be mutually agreed by the parties hereto. Unless otherwise
      agreed by all of the parties hereto, if the Resolutive Conditions and
      Conditions Precedent are not satisfied, or waived by the parties hereto,
      on or prior to the Closing, the rights and obligations of each party
      hereunder will terminate.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|**2.** | **Resolutive Conditions**
|------ | -------------------------
|       |                          
|       | (a)                      

| | (i) | Broad-based composition of Tranter. Tranter and
      its existing shareholders having completed and implemented, by way of a
      shareholders agreement and lockup arrangements to the reasonable
      satisfaction of GBG and Southgold, a restructuring of the shareholding in
      Tranter to provide for broader based BEE participation. The shareholding
      in Tranter is proposed to be held as to 51% by the existing four HDSAs
      and the balance of the shareholding being distributed without
      consideration amongst:
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | A. | a trust consisting of a local youth group, with its
      trustees and beneficiaries all being HDSAs;                                                                 
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                        
| | B. | a company representing a rural HDSA womens
  group;                                                                                                                   
| |    |                                                                                                                                                                        
| | C. | a local community development trust, with its trustees
      and beneficiaries all being HDSAs; and                                                                   
| |    |                                                                                                                                                                        
| | D. | a trust for the Southgold employees, with its trustees
      and beneficiaries all being HDSAs (subject to the requirements of the
      South African labour regime).

| | (ii) | Joint Venture Agreement. The detailed terms of the
      Joint Venture agreement having been confirmed in writing in accordance
      with Section 1(a)(ii).
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

|**3.** | **Conditions
      Precedent**
|------ | ------------------------------
|       |                               
|       | (a)                           

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| |  | (i) | Tranter Agreements.
| |  | --- | -------------------
| |  |     |                    
| |  |     | A.                 
| |  |     |                    
| |  |     | B.                 
| |  |     |                    
| |  |     | C.                 
| |  |     |                    
| |  |     |                    

| |  | (ii) | Due Diligence.
| |  | ---- | --------------
| |  |      |               
| |  |      | A.            
| |  |      |               
| |  |      | B.            

| |  | (iii) | Regulatory Approval. Each of GBG, Southgold and
        Tranter having obtained such governmental and regulatory approvals as
        may be necessary or desirable for the completion of the BEE Transactions,
        including, without limitation:
| |  | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | A. | written approval from the TSX Venture Exchange (the
      TSXV), including, without limitation, the issuance of common shares
      of
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------

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| |    | Southgold and compliance by GBG, Southgold and Tranter
      with any conditions precedent to the completion of the BEE Transactions as
      specified by the TSXV;                                                                                                                                                                        
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                             
| | B. | written approval from the Exchange Control Department of
      the South African Reserve Bank (SARB) and compliance by GBG, Southgold
      and Tranter with any conditions precedent to the completion of the BEE
      Transactions as specified by SARB;                                                                               
| |    |                                                                                                                                                                                                                                                                                                                                             
| | C. | written approval from the Government of South Africa
      acting through the Minister of Minerals and Energy and the Department of
      Minerals and Energy (the DME) and compliance by GBG, Southgold and
      Tranter with any conditions precedent to the completion of the BEE
      Transactions as specified by DME; and         
| |    |                                                                                                                                                                                                                                                                                                                                             
| | D. | the issue to Southgold of new order prospecting or mining
      rights in respect of materially all old order mineral tenure lodged by
      Southgold with the DME, whether by way of conversion or application, prior
      to the Closing and such new order rights being in a form and on terms
      satisfactory to Southgold and GBG.

| | (iv) | Directors Approval. Each of Tranter, Southgold,
      GBG and N6C having obtained the approval of its board of directors of the
      BEE Transactions.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Tranter, Southgold and GBG will use reasonable commercial
        efforts and will do and perform such acts and things as may be required
        to give effect to the terms and conditions of this Agreement and to satisfy
        the Resolutive Conditions and the Conditions Precedent. For greater certainty,
        as used herein, the expression reasonable commercial efforts
        shall not obligate any party to make any out-of- pocket expenditures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | (c) | Tranter, on the one hand, and GBG and Southgold, on
        the other hand, in relation to information received pursuant to section
        3(a)(ii), agree to keep any non-public confidential information received
        pursuant hereto and not described in clauses (ii) or (iii) of this paragraph
        below (collectively, the Confidential Information) confidential
        and not release or disclose such information to any person other than
        their representatives who need to receive the information in connection
        with the negotiation and completion of the BEE Transactions, provided
        this provision will not restrict any party from making disclosure of any
        information (i) to the extent required by applicable laws, regulatory
        requirements (including stock exchange requirements) or pursuant to an
        order of any court of competent jurisdiction or oral questions, interrogatories,
        requests for information or documents, subpoena, civil investigative demand
        or similar legal process (collectively, Applicable Law), or
        (ii) that is or becomes generally available to the public, other than
        as a result of a breach by such party of this provision; or (iii) was
        or becomes available to such party on a non-confidential basis from a
        source other than the other parties hereto.

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| | (d) | If any party is required by
        Applicable Law to disclose any Confidential Information, such party shall,
        subject to its obligations to comply with Applicable Law, provide the
        other parties hereto with prompt notice thereof so that such parties may
        seek an appropriate protective order.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | (e) | In the event the Conditions Precedent are not satisfied
        on or before 30 June 2005 or a later date selected by the parties by written
        agreement, (A) at the written request of GBG and Southgold, any Confidential
        Information provided to Tranter in written form shall be promptly returned
        by Tranter and any documents or records containing or derived from Confidential
        Information and prepared by Tranter or its representatives shall be promptly
        destroyed or erased and (B) at the written request of Tranter, any Confidential
        Information provided to GBG or Southgold in written form shall be promptly
        returned by GBG and Southgold and any documents or records containing
        or derived from Confidential Information and prepared by GBG or Southgold
        or any of their representatives shall be promptly destroyed or erased.

|**4.** | **Representations and
  Warranties**
|------ | ------------------------------------
|       |                                     
|       | (a)                                 

|**5.** | **Costs**
|------ | ---------
|       |          
|       | (a)      

|**6.** | **Public Disclosure**
|------ | ---------------------
|       |                      
|       | (a)                  

8

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|   |         | or determined by the TSXV in connection with their approval
        of the BEE Transactions as contemplated above. Subject to the obligation
        of GBG to comply with Applicable Law, the timing and wording of any press
        releases and other public disclosure of or relating to this agreement
        and the BEE Transactions contemplated herein will be subject to the prior
        approval of Tranter, such approval not to be unreasonably withheld.                                                                                                                                                                                                                                                                                                                                                     
|-- | ------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|7. | General
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | (a)     | Entire Agreement. This Agreement constitutes
        the entire agreement between the parties with respect to the subject matter
        hereof and cancels and supersedes any prior understandings and agreements
        between the parties with respect thereto. There are no representations,
        warranties, terms, conditions, undertakings or collateral agreements,
        express, implied or statutory, between the parties other than as expressly
        set forth in this Agreement. This Agreement is intended to be legally
        binding on the parties, however if the parties are unable to achieve one
        or more definitive agreements to supersede this Agreement, the parties
        shall refer the matter to binding arbitration under the laws of the Republic
        of South Africa.
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | (b)     | Governing Law. This Agreement is conclusively
        deemed to be made under, and for all purposes, to be governed by and construed
        in accordance with, the laws of the Republic of South Africa.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | (c)     | Counterparts. This Agreement may be executed
        in any number of counterparts, each of which will be deemed to be an original
        and all of which taken together will be deemed to constitute one and the
        same instrument.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | (d)     | Facsimiles. Delivery of an executed signature
        page to this Agreement by any party by electronic transmission will be
        as effective as delivery of a manually executed copy of the Agreement
        by such party.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

IN WITNESS WHEREOF, the parties have caused this Agreement to
be duly executed on the day and year first above written.

GREAT BASIN GOLD LIMITED

Per:
______________________________       
Ronald W. Thiessen, President and CEO

TRANTER INVESTMENTS (PTY) LTD

Per:
______________________________       
Sipho Nkosi, Managing Director

9

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SOUTHGOLD EXPLORATION (PTY) LTD

Per:
______________________________       Robert
Still, [title]

10

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SCHEDULE A

DIAGRAMMATIC REPRESENTATION OF BURNSTONE PROJECT




A-1

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SCHEDULE B

LIST OF MINERAL RIGHTS IN THE BURNSTONE PROJECT

[Note: to be inserted]

B-1

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