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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) | Subject to the provisions of this Agreement:
| | --- | --------------------------------------------

1

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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. | If required by Tranter, GBG will provide Tranter
        with sufficient loan funding (the “Loan Funding”) in order
        for Tranter to acquire the Initial Shares and the Joint Venture Interest.
        Such funding will be secured by Tranter’s assets, including a first
        ranking pledge and cession in security of its interests in Southgold and
        the Joint Venture and its future revenue streams from these assets. Repayments
        by Tranter will be allocated first to accrued interest and thereafter
        to the repayment of capital. The interest rate payable in respect of the
        Loan Funding will be the best commercial terms that would be available
        to Tranter if it were to borrow funds from a recognized South African
        lending institution in the circumstances prevailing at the time.
| |  |  | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  |  | B. | GBG will (or, in its sole discretion, GBG will procure
        that Southgold will) pay Trantor ZAR200,000 for its assistance in relation
        to, and for completion of the mineral title conversion process in respect
        of, the Burstone Project, including a determination of any BEE credits
        (whether for Southgold or any third party) which may apply by virtue of
        the BEE Transactions or any related transactions. Such payment shall be
        made in accordance with the following schedule:                                                                                                                                                                                                                                                                                                                            
|

| |  |  |  | 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) | The Joint Venture will terminate unless the following resolutive conditions
      (the “Resolutive Conditions”) are satisfied on or before 30
      June 2005 or any later date agreed in writing between the parties:
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|

| |  | (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) | The obligation of Tranter, Southgold and GBG to complete the BEE Transactions
      other than the Joint Venture is subject to the following conditions (the
      “Conditions Precedent”):
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5

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| |  | (i) | Tranter Agreements.
| |  | --- | -------------------
|

| |  |  | A. | Tranter, Southgold and N6C Incorporated (a wholly-owned
        subsidiary of GBG incorporated in the Cayman Islands) (“N6C”)
        negotiating and entering into one or more legally binding shareholders
        agreements regarding the various matters set out in this Agreement in
        relation to Tranter’s acquisition of the Initial Shares and its
        option to acquire the Option Shares, as well as other matters dealing
        with their relationship as shareholders in Southgold;
| |  |  | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  |  | B. | Tranter and GBG negotiating and entering into one
        or more legally binding loan agreements in relation to the Loan Funding;
        and                                                                                                                                                                                                                                                                                                                                                                
|
| |  |  | C. | Tranter and GBG negotiating and entering into one
        or more legally binding security agreements to secure the Loan Funding,                                                                                                                                                                                                                                                                                                                                                                             
|
| |  |  |    | (collectively, the “Tranter Agreements”).                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|

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

| |  |  | A. | Tranter shall provide, or cause to be provided,
        to GBG and Southgold access to all books, records, properties, contracts,
        agreements, commitments, financial statements and reports of or pertaining
        to Tranter and its properties and assets and all such other information
        as GBG and Southgold may reasonably request in relation to Tranter, and
        GBG and Southgold completing due diligence in relation to Tranter complying
        with its reorganization requirement to the satisfaction of GBG and Southgold
        acting reasonably; and    
| |  |  | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  |  | B. | GBG and Southgold shall provide, or cause to be
        provided, to Tranter access to all books, records, properties, contracts,
        agreements, commitments and reports relating to the Burnstone Project
        and provide, or cause to be provided to Tranter all such information as
        Tranter may reasonably request in relation to the Burnstone Project, and
        Tranter completing due diligence in relation to the BEE Transactions,
        to the satisfaction of Tranter in its sole discretion, such discretion
        to be exercised on or before 30 June 2005;
|

| |  | (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) | All parties agree to provide normal representations
        and warranties as to corporate existence and good standing, residency
        if applicable, capacity and authorization for the BEE Transactions as
        applicable, authorization for the issue of capital stock as applicable,
        beneficial and legal title to the Burnstone Project as applicable, absence
        of encumbrances and liabilities and compliance with environmental laws
        and environmental obligations, and agree to indemnify each other with
        respect to breach of their respective representations and warranties.
        No representations or warranties will be provided with respect to the
        accuracy of any reserve or resource estimates or other technical information
        or with respect to any other technical matters. All representations and
        warranties will expire one year following the Closing.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|

|5. | Costs
|-- | -----
|  

| | (a) | Each party will pay the costs and expenses incurred
        by it in connection with any due diligence investigations and the negotiation
        of, entering into and completion of the BEE Transactions contemplated
        herein. In the event of any failure to execute the Tranter Agreement in
        respect of the BEE Transactions contemplated herein, as anticipated herein,
        for any reason whatsoever, all parties agree that all costs incurred by
        them in connection with the proposed BEE Transactions will be for their
        own account and all parties agree that neither will seek legal redress
        from the others for such costs incurred.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|

|6. | Public Disclosure
|-- | -----------------
|  

| | (a) | Tranter and Southgold agree that GBG may make public disclosure regarding
      this Agreement and the BEE Transactions contemplated herein, and may make
      such additional public disclosure regarding the BEE Transactions as may
      be required
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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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