---

KPMG LLP
      Telephone
      (604) 691-3000Chartered Accountants
      Fax
      (604) 691-3031PO Box 10426 777 Dunsmuir Street
      Internet
      www.kpmg.caVancouver BC V7Y 1K3Canada








AUDITORS’ REPORT ON RECONCILIATION
  TO UNITED STATES GAAP

To the Board of Directors of
  Great Basin Gold Ltd.

On March 16, 2007 we reported on the consolidated balance sheets
  of Great Basin Gold Ltd. (the “Company”) as at December 31, 2006
  and 2005, and the consolidated statements of operations, deficit and cash flows
  for the years then ended which are included in the annual report on Form 40-F.
  In connection with our audits conducted in accordance with Canadian generally
  accepted auditing standards of the aforementioned consolidated financial statements,
  we also have audited the related supplemental note entitled "Reconciliation
  with United States Generally Accepted Accounting Principles - Item 18"
  included in the Form 40-F. This supplemental note is the responsibility of the
  Company's management. Our responsibility is to express an opinion on this supplemental
  note based on our audits.

In our opinion, such supplemental note, when considered in
  relation to the basic consolidated financial statements taken as a whole, presents
  fairly, in all material respects, the information set forth therein.



/s/ KPMG LLP

Chartered Accountants

Vancouver, Canada 
  March 30, 2007



> KPMG LLP, a Canadian limited liability
>                 partnership is the Canadian 
>                 member firm of KPMG International, a Swiss cooperative.

---

|GREAT BASIN GOLD LTD.                                                                     
|------------------------------------------------------------------------------------------
|Supplementary Note                                                                        
|Reconciliation with United States Generally Accepted
      Accounting Principles  Item 18
|Years ended December 31, 2006 and 2005                                                    
|(Expressed in
      Canadian Dollars unless otherwise stated)                             

Great Basin Gold Ltd. (the Company) prepares its consolidated
financial statements in accordance with Canadian generally accepted accounting
principles (Canadian GAAP) which principles differ in certain respects from
those applicable in the United States (US GAAP) and from practices prescribed
by the United States Securities and Exchange Commission (SEC). This
Reconciliation with United States Generally Accepted Accounting Principles 
Item 18 note supplements the Companys financial statements set forth in
its annual report on Form 40-F in order to comply with Item 18 under Form 20-F.
This note should be read in conjunction with the consolidated financial
statements of the Company as at December 31, 2006 and 2005 and for the years
then ended which are included elsewhere in the Form 40-F.

Had the Company followed US GAAP, for measurement differences,
certain items on the statements of operations, deficit and balance sheets would
have been reported as follows:

|                                                                       |   | As at       |   |   | As at       |  
|---------------------------------------------------------------------- | - | ----------- | - | - | ----------- | -
|                                                                       |   | December 31 |   |   | December 31 |  
|                                                                       |   | 2006        |   |   | 2005        |  
|                                                                       |   |             |   |   | (restated  |  
|Consolidated
      Balance Sheets                                      |   |             |   |   | note (b))   |  
|                                                                       |   |             |   |   |             |  
|Total assets under Canadian GAAP                                       | $ | 149,918,520 |   | $ | 116,689,495 |  
|Adjustments under US GAAP                                              |   |             |   |   |             |  
|Investments (b)                                                        |   | 64,811      |   |   |            |  
|Total assets
      under US GAAP                                       | $ | 149,983,331 |   | $ | 116,689,495 |  
|                                                                       |   |             |   |   |             |  
|Total liabilities under Canadian GAAP                                  |   | 20,572,823  |   |   | 20,064,205  |  
|Adjustments under US GAAP                                              |   |             |   |   |             |  
|Recognize warrants issued for property as liability
      (b)          |   | 1,093,000   |   |   |            |  
|Mark-to-market adjustment on warrants
      (b)                        |   | (74,000     | ) |   |            |  
|Total
      liabilities under US GAAP                                  | $ | 21,591,823  |   | $ | 20,064,205  |  
|                                                                       |   |             |   |   |             |  
|Share capital, warrants and contributed surplus under
      Canadian   |   |             |   |   |             |  
|GAAP                                                                   | $ | 210,573,064 |   | $ | 166,235,846 |  
|Adjustments under US GAAP:                                             |   |             |   |   |             |  
|Stock-based compensation (a)                                           |   | 2,658,000   |   |   | 2,658,000   |  
|Warrants exercised in prior periods (b)                                |   | (3,695,159  | ) |   | (3,695,159  | )
|Recognize warrants issued for
      property as liability (b)          |   | (1,093,000  | ) |   |            |  
|Share capital
      and contributed surplus under US GAAP              | $ | 208,442,905 |   | $ | 165,198,687 |  
|                                                                       |   |             |   |   |             |  
|Deficit under Canadian GAAP                                            | $ | (81,227,367 | ) | $ | (69,610,556 | )
|Adjustments under US GAAP:                                             |   |             |   |   |             |  
|Stock-based compensation (a)                                           |   | (2,658,000  | ) |   | (2,658,000  | )
|Investments (b)                                                        |   | 64,811      |   |   |            |  
|Mark-to-market adjustment on warrants (b)                              |   | 74,000      |   |   | 45,000      |  
|Mark-to-market adjustment on warrants
      exercised in prior         |   |             |   |   |             |  
|periods (b)                                                            |   | 3,695,159   |   |   | 3,695,159   |  
|Reduction of gain on sale of
      investments due to prior year mark- |   |             |   |   |             |  
|to-market adjustment (b)                                               |   |            |   |   | (45,000     | )
|Deficit under US GAAP                                                  | $ | (80,051,397 | ) | $ | (68,573,397 | )

---

|GREAT BASIN GOLD LTD.                                                                     
|------------------------------------------------------------------------------------------
|Supplementary Note                                                                        
|Reconciliation with United States Generally Accepted
      Accounting Principles  Item 18
|Years ended December 31, 2006 and 2005                                                    
|(Expressed in
      Canadian Dollars unless otherwise stated)                             

|                                                 |   | Year ended  |   |   | Year ended  |  
|------------------------------------------------ | - | ----------- | - | - | ----------- | -
|                                                 |   | December 31 |   |   | December 31 |  
|Consolidated
      Statements of Operations      |   | 2006        |   |   | 2005        |  
|Loss for the year under Canadian GAAP            | $ | 11,616,811  |   | $ | 1,563,771   |  
|Adjustments under US GAAP:                       |   |             |   |   |             |  
|Mark-to-market adjustment on warrants (b)        |   | (74,000     | ) |   |            |  
|Reduction of gain (loss) on sale of investments  |   |             |   |   |             |  
|due to prior year mark-to-market adjustment (b)  |   |            |   |   | (45,000     | )
|Loss for the year, US GAAP                       | $ | 11,542,811  |   | $ | 1,518,771   |  
|                                                 |   |             |   |   |             |  
|Other comprehensive income:                      |   |             |   |   |             |  
|Adjustment for
      unrealized holding gain (b) |   | (64,811     | ) |   |            |  
|Comprehensive
      loss                         | $ | 11,478,000  |   | $ | 1,518,771   |  
|                                                 |   |             |   |   |             |  
|Basic and diluted loss per share for the year    |   |             |   |   |             |  
|under US GAAP                                    | $ | 0.11        |   | $ | 0.02        |  

There are no material differences between Canadian GAAP and US
GAAP in the consolidated statements of cash flows for the years ended December
31, 2006 and 2005.

|(a) | Stock based compensation
|--- | ------------------------

In the year ended December 31, 2003 the
Company adopted the fair value based method of accounting for employee
stock-based compensation as prescribed by FASB Statement No. 123, Accounting
for Stock-Based Compensation (SFAS 123). The Company adopted the fair
value base method on a prospective basis from January 1, 2003 as permitted by
FASB Statement No. 148, Accounting for Stock-Based Compensation Transition
and Disclosure, and amendment of FASB Statement No. 123. The prospective
adoption of this new US GAAP policy creates no differences with the Companys
stock-based compensation expense reported under Canadian GAAP.

In December 2004, the Financial
Accounting Standards Board ("FASB") issued Statement of Financial Accounting
Standards No. 123 (revised 2004), "Share-Based Payment (SFAS 123(R),
which is a revision of SFAS 123. SFAS 123(R) supersedes APB Opinion No. 25,
Accounting for Stock Issued to Employees. Generally, the approach in
SFAS 123(R) requires all share-based payments to employees, including grants of
employee stock options, to be recognized in the income statement based on their
fair values. Pro forma disclosure is no longer an alternative. As the Company
currently uses the fair value method to account for all stock option grants this
statement did not have any material impact on the financial statements when it
was adopted on January 1, 2006.

Prior to 2003 under US GAAP, the
Company accounted for its employee stock option plan under the principles of
Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to
Employees (APB 25) and other Interpretations. No compensation expense was
recognized under APB 25 because the exercise price of the Companys employee
stock options equalled the market price of the underlying stock on the date of
the grant.

For the years ended December 31, 2006
and 2005, there were no differences in stock-based compensation expense in
respect of non-employee share options which would be required to be charged to
operations under both Canadian and US GAAP.

---

|GREAT BASIN GOLD LTD.                                                                     
|------------------------------------------------------------------------------------------
|Supplementary Note                                                                        
|Reconciliation with United States Generally Accepted
      Accounting Principles  Item 18
|Years ended December 31, 2006 and 2005                                                    
|(Expressed in
      Canadian Dollars unless otherwise stated)                             

As SFAS 123 was adopted on a
prospective basis, there is $2,658,000 historical difference in contributed
surplus and deficit relating to the period prior to adoption.

|(b) | Fair value of financial
  instruments
|--- | -------------------------------------

US GAAP requires investments in
available-for-sale securities to be recorded at fair value in accordance with
SFAS 115, Accounting for Certain Investments in Debt and Equity
Securities (SFAS 115). Unrealized gains and losses are recorded in a
separate component of shareholders' equity with the year-over-year change, net
of the related tax effect, recorded as other comprehensive income (loss), except
for declines in fair value that are determined to be other than temporary. These
declines in value are charged to the statement of operations, which is similar
to Canadian GAAP.

US GAAP requires a company to present
comprehensive income (loss) in accordance with SFAS 130, Reporting
Comprehensive Income, which establishes standards for reporting and display
of comprehensive income (loss), its components and accumulated balances.
Comprehensive income (loss) comprises net income (loss) and all changes to
shareholders equity except those resulting from investments by owners and
distributions to owners. As at December 31, 2006, investments and accumulated
other comprehensive income would each increase by $64,811 (2005  nil) and the
change in other comprehensive loss of $64,811 (2005  nil) would be reflected in
other comprehensive loss in the statement of operations.

Under US GAAP, certain warrants held by
the Company would be considered derivative financial instruments and would be
accounted for under SFAS 133, Accounting for Derivative Instruments and
Hedging Activities(SFAS 133), until they were exercised. Once
exercised, the shares received would be considered available-for-sale securities
and would be accounted for under SFAS 115. SFAS 133 requires that all derivative
financial instruments be recognized in the financial statements and measured at
fair value. Changes in the fair value of a derivative financial instrument are
charged to operations.

At December 31, 2005, the fair value of
warrants held by the Company was estimated to be $179,000 (2004  $226,000).
Consequently, a mark-to-market loss of $45,000 would have been recorded in 2004
under US GAAP and would decrease the loss on sale of investments in 2005 by an
equal and offsetting amount.

Also under US GAAP, warrants issued by
the Company that are denominated in currencies other than Canadian dollars would
be accounted for as a derivative liability pursuant to SFAS 133. During 2006,
the Company issued 2,000,000 of such warrants and assigned the issued warrants a
value of $1,093,000. At December 31, 2006, the fair value of these warrants was
estimated at $1,019,000 resulting in a mark-to-market gain of $74,000 that would
have been recorded under US GAAP.

Similarly, during 2003 and 2004, the
  Company issued a total of 10.5 million warrants that were denominated in currencies
  other than Canadian dollars and assigned the warrants an initial value of $13,560,000.
  These warrants were all exercised in 2003 and January 2005 resulting in a mark-to-market
  loss of $4,819,962 in 2003 and a mark-to-market gain of $8,515,121 in 2004.
  As all of these warrants were exercised, the liability recorded was reclassified
  to share capital.

---

|GREAT BASIN GOLD LTD.                                                                     
|------------------------------------------------------------------------------------------
|Supplementary Note                                                                        
|Reconciliation with United States Generally Accepted
      Accounting Principles  Item 18
|Years ended December 31, 2006 and 2005                                                    
|(Expressed in
      Canadian Dollars unless otherwise stated)                             

|(c) | Other
|--- | -----
|    |      
|    | (i)  
|    |      
|    | (ii) 

As At December 312006
    
    
    2005General and value added sales taxes
    $
    411,482
    
    $
    127,857Other receivables
    
    14,867
    
    
    80,905Total
    $
    426,349
    
    $
    208,762


|(d) | Additional disclosures
|--- | ----------------------

The Company meets the definition of a
development stage enterprise under SFAS 7, Accounting and Reporting by
Development Stage Enterprises (SFAS 7). Pursuant to the rules and
regulations of the SEC, a mining company in the exploration stage should not
refer to itself as a development stage company in its financial statements, even
though such Company should comply with SFAS 7. Under SFAS 7, the Company is
required to provide additional disclosures from its date of inception, or the
date the Company was reactivated to undertake development stage activities.
Consolidated summarized statements of operations and deficit and cash flows
since January 1, 1998, the date the Company was considered to be reactivated to
undertake development stage activities, to December 31, 2006 are presented as
follows:

Period
      fromJanuary 1, 1998to December 31, 2006Consolidated
      statements of operations and deficit
    (restated  note (b))Mineral property exploration and reclamation
    $ 51,488,689General and administration, salaries, professional fees,and other
    24,956,208Other income
    (7,513,254)Net loss for the period from January 1, 1998 toDecember 31, 2006, being the deficit accumulatedduring the exploration stage
    68,931,643Opening deficit accumulated during the developmentstage, January 1,
      1998
    11,119,754Ending deficit accumulated during the developmentstage, December
      31, 2006
    $
      80,051,397


---

|GREAT BASIN GOLD LTD.                                                                     
|------------------------------------------------------------------------------------------
|Supplementary Note                                                                        
|Reconciliation with United States Generally Accepted
      Accounting Principles  Item 18
|Years ended December 31, 2006 and 2005                                                    
|(Expressed in
      Canadian Dollars unless otherwise stated)                             

Period
      fromJanuary 1, 1998Consolidated
      statements of cash flows
    to
      December 31, 2006Operating activities
    $ (57,002,249)Investing activities
    (16,321,280)Financing
      activities
    105,365,759Increase in cash and cash and cash equivalents
    32,042,230Cash and cash equivalents  January 1, 1998
    1,922,206Cash and cash
      equivalents  December 31, 2006
    $
      33,964,436


Under FAS 7, the Companys
shareholders equity (restated  note (b)) since the date of inception is as
follows:

|                               |  | Common Shares |  |  |            |  |  |            |   |  |          |  |  |             | 
|------------------------------ |  | ------------- |  |  | ---------- |  |  | ---------- | - |  | -------- |  |  | ----------- | 
|                               |  |               |  |  |            |  |  |            |   |  |          |  |  |             | 
|                               |  |               |  |  |            |  |  |            |   |  |          |  |  |             | 
|                               |  |               |  |  |            |  |  |            |   |  |          |  |  |             | 
|                               |  | Issue         |  |  | Number of  |  |  |            |   |  |          |  |  | Contributed | 
|                               |  | Price         |  |  | shares     |  |  | Amount     |   |  | Warrants |  |  | surplus     | 
|                               |  | $             |  |  |            |  |  | $          |   |  | $        |  |  | $           | 
|Balance, January 1, 1998       |  |               |  |  | 14,161,171 |  |  | 22,790,760 |   |  | ****    |  |  |            | 
|                               |  |               |  |  |            |  |  |            |   |  |          |  |  |             | 
|Escrow shares                  |  | 0.01          |  |  | 750,000    |  |  | 7,500      |   |  |         |  |  |            | 
|Exercise of options            |  | 1.28          |  |  | 41,875     |  |  | 53,600     |   |  |         |  |  |            | 
|Private placement              |  | 2.00          |  |  | 1,704,600  |  |  | 2,983,088  |   |  |         |  |  |            | 
|For mineral property interests |  | 1.43          |  |  | 162,500    |  |  | 232,624    |   |  |         |  |  |            | 
|Loan guarantee                 |  | 2.05          |  |  | 98,125     |  |  | 201,156    |   |  |         |  |  |            | 
|Loss for the year              |  |              |  |  |           |  |  |           |   |  |         |  |  |            | 
|Stock based compensation       |  |              |  |  |           |  |  |           |   |  |         |  |  | 372,000     | 
|                               |  |               |  |  |            |  |  |            |   |  |          |  |  |             | 
|                               |  |               |  |  |            |  |  |            |   |  |          |  |  |             | 
|Balance, December 31, 1998     |  |               |  |  | 16,918,271 |  |  | 26,268,728 |   |  |         |  |  | 372,000     | 
|                               |  |               |  |  |            |  |  |            |   |  |          |  |  |             | 
|Exercise of warrants           |  | 1.16          |  |  | 1,834,600  |  |  | 2,126,428  |   |  |         |  |  |            | 
|Exercise of options            |  | 1.17          |  |  | 1,276,800  |  |  | 1,488,069  |   |  |         |  |  |            | 
|Private placement              |  | 1.30          |  |  | 4,864,335  |  |  | 6,011,841  |   |  |         |  |  |            | 
|For donations                  |  | 2.50          |  |  | 4,000      |  |  | 10,000     |   |  |         |  |  |            | 
|For mineral property interests |  | 1.28          |  |  | 2,825,000  |  |  | 3,606,250  |   |  |         |  |  |            | 
|Loss for the year              |  |              |  |  |           |  |  |           |   |  |         |  |  |            | 
|Stock based compensation       |  |              |  |  |           |  |  |           |   |  |         |  |  | 1,385,000   | 
|                               |  |               |  |  |            |  |  |            |   |  |          |  |  |             | 
|                               |  |               |  |  |            |  |  |            |   |  |          |  |  |             | 
|Balance, December 31, 1999     |  |               |  |  | 27,723,006 |  |  | 39,511,316 |   |  |         |  |  | 1,757,000   | 
|                               |  |               |  |  |            |  |  |            |   |  |          |  |  |             | 
|Exercise of warrants           |  | 1.31          |  |  | 5,312,331  |  |  | 6,983,902  |   |  |         |  |  |            | 
|Exercise of options            |  | 1.30          |  |  | 146,800    |  |  | 190,297    |   |  |         |  |  |            | 
|Private placement              |  | 2.00          |  |  | 5,000,000  |  |  | 9,299,145  |   |  |         |  |  |            | 
|Loss for the year              |  |              |  |  |           |  |  |           |   |  |         |  |  |            | 
|Stock based compensation       |  |              |  |  |           |  |  |           |   |  |         |  |  | 41,000      | 
|                               |  |               |  |  |            |  |  |            |   |  |          |  |  |             | 
|                               |  |               |  |  |            |  |  |            |   |  |          |  |  |             | 
|Balance, December 31, 2000     |  |               |  |  | 38,182,137 |  |  | 55,984,660 |   |  |         |  |  | 1,798,000   | 
|                               |  |               |  |  |            |  |  |            |   |  |          |  |  |             | 
|Share issuance costs           |  |              |  |  |           |  |  | (31,245    | ) |  |         |  |  |            | 
|Loss for the year              |  |              |  |  |           |  |  |           |   |  |         |  |  |            | 
|Stock based compensation       |  |              |  |  |           |  |  |           |   |  |         |  |  | 860,000     | 
|                               |  |               |  |  |            |  |  |            |   |  |          |  |  |             | 
|                               |  |               |  |  |            |  |  |            |   |  |          |  |  |             | 
|Balance, December 31, 2001     |  |              |  |  | 38,182,137 |  |  | 55,953,415 |   |  |         |  |  | 2,658,000   | 

---

|GREAT BASIN GOLD LTD.                                                                     
|------------------------------------------------------------------------------------------
|Supplementary Note                                                                        
|Reconciliation with United States Generally Accepted
      Accounting Principles  Item 18
|Years ended December 31, 2006 and 2005                                                    
|(Expressed in
      Canadian Dollars unless otherwise stated)                             

|                                            |  | Common Shares |  |  |             |  |  |             |  |  |          |   |  |             |  
|------------------------------------------- |  | ------------- |  |  | ----------- |  |  | ----------- |  |  | -------- | - |  | ----------- | -
|                                            |  |               |  |  |             |  |  |             |  |  |          |   |  |             |  
|                                            |  |               |  |  |             |  |  |             |  |  |          |   |  |             |  
|                                            |  |               |  |  |             |  |  |             |  |  |          |   |  |             |  
|                                            |  | Issue         |  |  | Number of   |  |  |             |  |  |          |   |  | Contributed |  
|                                            |  | Price         |  |  | shares      |  |  | Amount      |  |  | Warrants |   |  | surplus     |  
|                                            |  | $             |  |  |             |  |  | $           |  |  | $        |   |  | $           |  
|                                            |  |               |  |  |             |  |  |             |  |  |          |   |  |             |  
|Balance, December 31, 2001 (balance brought |  |               |  |  |             |  |  |             |  |  |          |   |  |             |  
|forward)                                    |  |              |  |  | 38,182,137  |  |  | 55,953,415  |  |  |         |   |  | 2,658,000   |  
|                                            |  |               |  |  |             |  |  |             |  |  |          |   |  |             |  
|Exercise of warrants                        |  | 1.00          |  |  | 2,257,000   |  |  | 2,257,000   |  |  |         |   |  |            |  
|Exercise of options                         |  | 0.96          |  |  | 679,900     |  |  | 656,018     |  |  |         |   |  |            |  
|Private placement                           |  | 1.50          |  |  | 5,742,327   |  |  | 7,891,385   |  |  |         |   |  |            |  
|Warrants issued for mineral property        |  |              |  |  |            |  |  |            |  |  | 295,000  |   |  |            |  
|Stock based compensation                    |  |              |  |  |            |  |  |            |  |  |          |   |  | 374,627     |  
|Loss for the year                           |  |              |  |  |            |  |  |            |  |  |         |   |  |            |  
|                                            |  |               |  |  |             |  |  |             |  |  |          |   |  |             |  
|                                            |  |               |  |  |             |  |  |             |  |  |          |   |  |             |  
|Balance, December 31, 2002                  |  |               |  |  | 46,861,364  |  |  | 66,757,818  |  |  | 295,000  |   |  | 3,032,627   |  
|                                            |  |               |  |  |             |  |  |             |  |  |          |   |  |             |  
|Exercise of warrants                        |  | 1.51          |  |  | 6,541,943   |  |  | 7,683,994   |  |  |         |   |  |            |  
|Exercise of options                         |  | 1.43          |  |  | 3,636,600   |  |  | 5,204,175   |  |  |         |   |  |            |  
|Private placement                           |  | 1.80          |  |  | 5,600,000   |  |  | 9,416,731   |  |  |         |   |  |            |  
|Shares issued for mineral property          |  | 1.38          |  |  | 10,000,000  |  |  | 13,800,000  |  |  |         |   |  |            |  
|Exercise of warrants  fair value           |  |              |  |  |            |  |  | 7,019,962   |  |  |         |   |  |            |  
|Fair value of stock options exercised       |  |              |  |  |            |  |  | 430,000     |  |  |         |   |  | (430,000    | )
|Stock based compensation                    |  |              |  |  |            |  |  |            |  |  |         |   |  | 2,131,739   |  
|Loss for the year                           |  |              |  |  |            |  |  |            |  |  |         |   |  |            |  
|                                            |  |               |  |  |             |  |  |             |  |  |          |   |  |             |  
|                                            |  |               |  |  |             |  |  |             |  |  |          |   |  |             |  
|Balance, December 31, 2003                  |  |               |  |  | 72,639,907  |  |  | 110,312,680 |  |  | 295,000  |   |  | 4,734,366   |  
|                                            |  |               |  |  |             |  |  |             |  |  |          |   |  |             |  
|Exercise of warrants                        |  | 1.81          |  |  | 2,137,772   |  |  | 3,785,490   |  |  |         |   |  |            |  
|Exercise of options                         |  | 1.16          |  |  | 835,700     |  |  | 969,580     |  |  |         |   |  |            |  
|Shares issued for mineral property          |  | 2.98          |  |  | 11,000,000  |  |  | 32,780,000  |  |  |         |   |  |            |  
|Fair value of stock options exercised       |  |              |  |  |            |  |  | 239,915     |  |  |         |   |  | (239,915    | )
|Warrants expired unexercised                |  |              |  |  |            |  |  |            |  |  | (221,250 | ) |  | 221,250     |  
|Exercise of warrants  fair value           |  |              |  |  |            |  |  | 73,750      |  |  | (73,750  | ) |  |            |  
|Stock based compensation                    |  |              |  |  |            |  |  |            |  |  |         |   |  | 2,473,354   |  
|Loss for the year                           |  |              |  |  |            |  |  |            |  |  |         |   |  |            |  
|                                            |  |               |  |  |             |  |  |             |  |  |          |   |  |             |  
|                                            |  |               |  |  |             |  |  |             |  |  |          |   |  |             |  
|                                            |  |               |  |  |             |  |  |             |  |  |          |   |  |             |  
|Balance, December 31, 2004                  |  |               |  |  | 86,613,379  |  |  | 148,161,415 |  |  |         |   |  | 7,189,055   |  
|                                            |  |               |  |  |             |  |  |             |  |  |          |   |  |             |  
|Exercise of warrants                        |  | 0.91          |  |  | 5,500,000   |  |  | 5,018,062   |  |  |         |   |  |            |  
|Exercise of options                         |  | 0.96          |  |  | 1,572,000   |  |  | 1,509,120   |  |  |         |   |  |            |  
|Exercise of warrants  fair value           |  |              |  |  |            |  |  | 2,844,879   |  |  |         |   |  |            |  
|Stock based compensation                    |  |              |  |  |            |  |  |            |  |  |         |   |  | 476,156     |  
|Loss for the year                           |  |              |  |  |            |  |  |            |  |  |         |   |  |            |  
|                                            |  |               |  |  |             |  |  |             |  |  |          |   |  |             |  
|                                            |  |               |  |  |             |  |  |             |  |  |          |   |  |             |  
|Balance, December 31, 2005                  |  |               |  |  | 93,685,379  |  |  | 157,533,476 |  |  |         |   |  | 7,665,211   |  
|                                            |  |               |  |  |             |  |  |             |  |  |          |   |  |             |  
|Exercise of options                         |  | 1.49          |  |  | 1,193,000   |  |  | 1,782,510   |  |  |         |   |  |            |  
|Shares issued for cash net of issue costs   |  | 2.25          |  |  | 11,200,000  |  |  | 23,058,915  |  |  |         |   |  |            |  
|Private placement net of issue costs        |  | 2.25          |  |  | 3,333,334   |  |  | 7,033,683   |  |  |         |   |  |            |  
|Shares issued for mineral property          |  | 1.90          |  |  | 4,000,000   |  |  | 7,600,000   |  |  |         |   |  |            |  
|Fair value of stock options exercised       |  |              |  |  |            |  |  | 753,849     |  |  |         |   |  | (753,849    | )
|Compensation warrants                       |  |              |  |  |            |  |  |            |  |  | 159,000  |   |  |            |  
|Stock based compensation                    |  |              |  |  |            |  |  |            |  |  |         |   |  | 3,610,110   |  
|Loss for the year                           |  |              |  |  |            |  |  |            |  |  |         |   |  |            |  
|                                            |  |               |  |  |             |  |  |             |  |  |          |   |  |             |  
|Balance, December
      31, 2006            |  |               |  |  | 113,411,713 |  |  | 197,762,433 |  |  | 159,000  |   |  | 10,521,472  |  

---

|GREAT BASIN GOLD LTD.                                                                     
|------------------------------------------------------------------------------------------
|Supplementary Note                                                                        
|Reconciliation with United States Generally Accepted
      Accounting Principles  Item 18
|Years ended December 31, 2006 and 2005                                                    
|(Expressed in
      Canadian Dollars unless otherwise stated)                             

|(e) | Impact of recent United States accounting
      pronouncements:
|--- | ---------------------------------------------------------------
|    |                                                                
|    | (i)                                                            
|    |                                                                
|    | (ii)                                                           
|    |                                                                
|    | (iii)                                                          
|    |                                                                
|    | (iv)                                                           

---

|GREAT BASIN GOLD LTD.                                                                     
|------------------------------------------------------------------------------------------
|Supplementary Note                                                                        
|Reconciliation with United States Generally Accepted
      Accounting Principles  Item 18
|Years ended December 31, 2006 and 2005                                                    
|(Expressed in
      Canadian Dollars unless otherwise stated)                             

| | (v) | In September 2006, the US Securities and Exchange Commission
        issued Staff Accounting Bulletin No. 108 which provides guidance on the
        consideration of the effects of prior year misstatements in quantifying
        misstatements in current year financial statements. This guidance was
        applicable for annual statements ending after November 15, 2006 and adoption
        of this interpretation in 2006 had no impact on the Companys financial
        position, results of operations or cash flows.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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