INTRODUCTION AND PURPOSE OF MONITOR S REPORT...1 THE COMPANY S RECENT CCAA COURT PROCEEDINGS...4

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2 Table of Contents INTRODUCTION AND PURPOSE OF MONITOR S REPORT...1 RESTRICTIONS ON THE USE OF THIS REPORT...3 THE COMPANY S RECENT CCAA COURT PROCEEDINGS...4 INTERIM FINANCING RECEIVED TO DATE AND THE COMPANY S EFFORTS TO SECURE SUFFICIENT FUNDING IN ORDER TO COMPLETE ITS PLANNED RESTRUCTURING...4 UPDATE REGARDING THE STATUS OF THE SETTLEMENT AGREEMENT...8 RECEIPTS AND DISBURSEMENTS FOR THE NINE-WEEK PERIOD ENDED NOVEMBER 16, THE COMPANY S UPDATED CASH FLOW FORECAST...10 UPDATE ON THE BUSINESS RESCUE PROCEEDINGS IN SOUTH AFRICA...12 UPDATE ON THE STATUS OF THE HOLLISTER OPERATIONS...13 SALES AND INVESTOR SOLICITATION PROCESS - HOLLISTER...14 THE RETENTION OF A CHIEF RESTRUCTURING OFFICER...14 OTHER RESTRUCTURING EFFORTS...15 THE MONITOR S CONCLUDING OBSERVATIONS AND RECOMMENDATIONS...16

3 INDEX TO SCHEDULES Schedule A Cash Flow Forecast for the 13-Week Period Ending February 15, 2013 Schedule B Draft engagement letter of Alvarez & Marsal

4 1.0 INTRODUCTION AND PURPOSE OF MONITOR S REPORT 1.1 KPMG Inc. ("KPMG" or the "Monitor") was appointed as Monitor pursuant to the order of the Honourable Madam Justice Fitzpatrick on September 19, 2012 in respect of the petition filed by Great Basin Gold Ltd. ("GBGL" or the "Company"), under the Companies' Creditors Arrangement Act, R.S.C. 1985, c. C-36, as amended (the "CCAA"). The proceedings brought by the Company under the CCAA will be referred to herein as the "CCAA Proceedings" and the order granted by the Court on September 19, 2012 is hereinafter referred to as the "Initial Order". 1.2 On September 19, 2012, KPMG filed the Pre-Filing Report of the Proposed Monitor (the Monitor s Pre-Filing Report ) which sets out certain of the Company s background information, its initial, CCAA-filed cash flow forecast (the Cash Flow Forecast ), its proposed interim financing arrangements and certain of its preliminary restructuring efforts and plans. 1.3 On September 26, 2012, the Monitor filed its First Report to the Court which described certain background information relating to the current financial difficulties experienced by the Company, the Monitor s assessment of the Cash Flow Forecast, information regarding the Monitor s regular monitoring of the Company, an overview of the Company s restructuring proceedings in South Africa and status of the Company s efforts to obtain interim financing (the First Report ). 1.4 On October 2, 2012, the Monitor filed its Second Report to the Court which provided information regarding the Company s attempts to secure interim financing and the urgency of its short term funding requirements, in light of the recent issues encountered in securing such financing (the Second Report ). 1.5 On October 15, 2012, the Monitor filed its Third Report to the Court which provided information regarding the settlement agreement among the Company, the Approved DIP Lenders and the Ad Hoc Group in respect of the Approved DIP Facility (the Settlement Agreement ), the activities of the Monitor, the Company s key executive retention program (the KERP ) and the specifics of the interim financing received by the Company to date (the Third Report ). 1

5 1.6 On November 5, 2012, the Monitor filed its Fourth Report to the Court which provided information regarding the status of the Settlement Agreement and the Company s restructuring efforts, including the process underway to select a Chief Restructuring Officer ( CRO ), (the Fourth Report ). 1.7 The purpose of this report (the Fifth Report ) is to provide this Honourable Court with information regarding the following: a) The Company s recent Court proceedings under the CCAA; b) Interim financing received by the Company to date and its efforts to secure further financing as required for its restructuring; c) The status of the Settlement Agreement; d) The actual receipts and disbursements of GBGL (on a consolidated basis) for the nine-week period ended November 16, 2012, compared to the same period of the Cash Flow Forecast; e) The Company s updated cash flow forecast for the 13-weeks ending February 15, 2013 (the Updated Cash flow Forecast ); f) The ongoing Business Rescue proceedings in South Africa; g) The status of the Company s mining operations in Nevada, USA (the Hollister Operations ); h) The status of the Company s sales and investor solicitation process for Hollister (the SISP ), which is currently in the process of being finalized; i) The status of the Company s CRO appointment and its application to this Honourable Court to approve the engagement of a new CEO and CFO; and j) Other matters. 2

6 1.8 The First Report, the Second Report, the Third Report and the Fourth Report are referred to herein as the Monitor s Prior Reports. 1.9 The Monitor s Prior Reports and further information regarding these proceedings can be found on the Monitor s website at RESTRICTIONS ON THE USE OF THIS REPORT 2.1 In preparing this report, KPMG has necessarily relied upon unaudited financial and other information supplied, and representations made, by certain senior management of GBGL and that of its subsidiary companies ("Senior Management"). Although this information has been subject to review, KPMG has not conducted an audit, nor otherwise attempted to verify the accuracy or completeness of any of the information of GBGL or its subsidiary and affiliate companies. Accordingly, unless otherwise stated, KPMG expresses no opinion and does not provide any other form of assurance on the accuracy of any such information, as provided by Senior Management and as contained in this report, or as otherwise used to prepare this report. 2.2 Certain of the information referred to in this report consists of financial forecasts and/or projections. An examination or review of financial forecasts and projections and procedures, in accordance with standards set by the Canadian Institute of Chartered Accountants, has not been performed. Future oriented financial information referred to in this report was prepared by Senior Management based on Senior Management's estimates and assumptions. Readers are cautioned that since financial forecasts and/or projections are based upon assumptions about future events and conditions that are not ascertainable, actual results will vary from the projections, and such variances could be material. 2.3 The information contained in this report is not intended to be relied upon by any prospective purchaser or investor in any transaction with the Company. 2.4 Capitalized terms not otherwise defined in this report are used herein as defined in the affidavit of Mr. Lourens Van Vuuren sworn September 19, 2012, which was filed with the Company s initial CCAA application, and the Monitor s Prior Reports. 3

7 2.5 References herein to the GBG Group are references to the consolidated group of GBGL entities. 2.6 Unless otherwise stated, all monetary amounts contained in this report are expressed in U.S. dollars. 3.0 THE COMPANY S RECENT CCAA COURT PROCEEDINGS 3.1 An overview of all CCAA Court proceedings is provided in the Monitor s Prior Reports. 3.2 On November 6, 2012, this Honourable Court granted an order extending the stay of proceedings to November 16, 2012, which was intended to be a short extension in order to allow the parties sufficient time to finalize the Settlement Agreement. 3.3 On November 16, 2012, this Honourable Court granted an order further extending the stay of proceedings to December 11, On November 20, 2012, this Honourable Court granted an order which provided a mechanism to implement the Settlement Agreement (the Settlement Implementation Order ), the status of which is discussed further herein. 4.0 INTERIM FINANCING RECEIVED TO DATE AND THE COMPANY S EFFORTS TO SECURE SUFFICIENT FUNDING IN ORDER TO COMPLETE ITS PLANNED RESTRUCTURING Interim financing received to date 4.1 As of November 15, 2012, the Company had received three advances under the Approved DIP Facility for a total of US$19.7 million. On November 16, 2012, the Company requested and received a further advance of US$9.3 million (the Fourth Interim Advance ) in order to fund certain accrued critical vendor payments at Hollister, fees and interest payable under the Approved DIP Facility, interest payments due under the Existing Burnstone Credit Agreement and accrued professional fees. At the time of the Fourth Interim Advance the Company remained in default in respect of numerous 4

8 provisions of the Approved DIP Facility agreement. Accordingly, a further waiver letter was obtained from the Approved DIP Lenders (as described herein). 4.2 The Company has, subject to any ongoing defaults under the Approved DIP Facility agreement, approximately US$6.0 million in remaining availability under the Approved DIP Facility (the maximum borrowings under which are currently US$35 million). However, the Company s needs through the coming 13 weeks (as set out in the Updated Cash Flow Forecast see Section 7 of this report) are estimated at approximately US$48.4 million. Moreover, the Company s funding needs are expected to increase to a total of US$60 million for the period ending March 31, The Company s need for further funding and its efforts to secure such committed financing from the Approved DIP Lenders is discussed further in Section 7 of this report. Amended Waiver received pursuant to the Fourth Interim Advance 4.4 In order to facilitate GBGL receiving the Fourth Interim Advance, the Approved DIP Lenders delivered a third waiver letter to the Company dated November 16, 2012 (the Third Waiver Letter ) which amended the First Waiver Letter dated October 3, 2012 and the Second Waiver Letter dated October 22, 2012, pursuant to which the Approved DIP Lenders specifically waived the following conditions precedent solely with respect to the Fourth Interim Advance (all capitalized terms not otherwise defined in this section are used herein as defined in the Approved DIP Facility): a) That the GBGI Guarantee and the related Security Documents have been duly authorized, entered into and are in full force and effect, as required by Section 2(b) of the Initial Utilisation Schedule; b) That the Finance Parties have received satisfactory legal opinions from McMillan LLP, Harris & Thompson and U.S. legal advisers to the Borrower with respect to the GBGI Guarantee, as required by Section 3 of the Initial Utilisation Schedule; c) That the Finance Parties have received a legal opinion from U.S. legal advisers to the Borrower with respect to whether the registration requirements for an 5

9 "investment company under the Investment Company Act of 1940, as amended, are required for any of the applicable Finance Parties, as required by Section 3(i) of the Initial Utilisation Schedule; d) That no notice shall have been received of a motion or application to stay, modify, vary, amend, reverse, appeal, or vacate in whole or in part the Initial Order or the DIP Charge or which in any way seeks to impair, limit or lessen the Security, protections, rights, or remedies of the Lenders, whether under the Initial Order or under any of the Finance Documents, as required by Section 8(w) of the Initial Utilisation Schedule and Clause 4.3(f) of the Credit Agreement; e) That the application for leave to appeal commenced under court file number CA in the British Columbia Court of Appeal (the "Debentureholder Appeal ) shall have been dismissed, vacated or withdrawn in all respects and shall not be the subject of any further application for leave to appeal, or further appeal, as required by Section 8(x) of the Initial Utilisation Schedule; f) That no Default has occurred and is continuing or would result from the proposed Loan, as required by Clause 4.3(a) of the Credit Agreement, in respect of Clause of the Credit Agreement arising from the Debentureholder Appeal, and in respect of Clause 23(b)(iii) of the Credit Agreement or as a result of the breach of representation and warranty set forth in Clause 17.1(t)(ii), which is an Event of Default pursuant to Clause 23.(4), in each case arising as a result of the application in the Nevada court for the appointment of a Receiver; g) That Southgold must obtain South African Reserve Bank exchange control approval in respect of the amount guaranteed under the Security SPV Guarantee and Indemnity being increased to reflect additional amounts advanced under the Emergency Burnstone Advance (US$9.2 million) and to be advanced under the Burnstone Facility, within 21 days from the Signature Date pursuant to Clause 21.33(b)(ii); provided that such approval shall be obtained by 5pm Pacific Standard Time (PST) on November 30, 2012; and 6

10 h) That the Company must provide the updated Six Month Forecast to the Approved DIP Lenders pursuant to Clause 4.3(d) of the Approved DIP Facility; provided that such updated Six Month Forecast shall be provided to the Approved DIP Lenders by no later than the earlier of the delivery of the next utilization request and 5pm PST on November 23, The Approved DIP Lenders confirmed in the Third Waiver Letter that they had not specifically approved certain proposed disbursements contained in the updated Approved Budget relating to employee retention payments which were prescribed in the Updated Cash Flow Forecast with respect to certain key employees at Hollister and Burnstone. The total proposed retention payments are approximately US$1.645 million and are due on March 31, The Third Waiver Letter also sets out certain additional events of default (in addition to the regular events of default which exist pursuant to Section 23.3 of the Approved DIP Facility), (the Additional Events of Default ). The Additional Events of Defaults shall have occurred if: a) The transactions contemplated by the Settlement Agreement are not closed by 5pm PST on November 23, 2012; or b) A CRO acceptable to the Approved DIP Lenders, in their sole discretion, is not appointed pursuant to an order of the Court by 5pm PST on November 23, 2012; or c) The Settlement Approval Order is stayed, modified, varied, amended, reversed, appealed, or vacated in whole or in part, without the consent of the Approved DIP Lenders. 4.7 The Additional Events of Default have been triggered and consequently the Approved DIP Facility remains in default as at the date of this report. 7

11 5.0 UPDATE REGARDING THE STATUS OF THE SETTLEMENT AGREEMENT 5.1 Notwithstanding the granting of the Settlement Implementation Order, the Settlement Agreement has yet to become effective in accordance with its terms as the Ad Hoc Group, the Approved DIP Lenders and the Company are continuing to negotiate the specific terms of certain legal opinions to be provided pursuant to the Settlement Agreement. 5.2 The Monitor has been advised that all necessary and applicable security documentation has been executed and delivered by each of the relevant parties to the Settlement Agreement. The Monitor has requested that the Company keep the Monitor updated, on a regular basis, as to the status of each of the outstanding legal opinions. The Monitor understands that all parties are working expeditiously to finalize, execute and deliver the remaining outstanding documentation required under the Settlement Agreement. 5.3 As of the date of this Report, the Monitor has been informed by the Company s counsel that it is expected that the Settlement Agreement will become effective sometime on Tuesday, November 27, RECEIPTS AND DISBURSEMENTS FOR THE NINE-WEEK PERIOD ENDED NOVEMBER 16, The consolidated receipts and disbursements of the GBG Group for the nine-week period ended November 16, 2012 (the latest period actual information was available) as compared to the Cash Flow Forecast originally filed in the CCAA Proceedings, is tabled below: 8

12 Great Basin Gold Ltd. Consolidated Actual versus Forecast Cash Flow(Note 1) For the Nine Week Period Ended November 16, 2012 Unaudited (US$000's) Consolidated Actual Forecast Variance Cash Inflow Gold sales and other 26,222 29,391 (3,168) Total Cash Inflow 26,222 29,391 (3,168) Cash Outflow Suppliers (18,899) (24,131) 5,232 Payroll and Benefits (13,535) (16,081) 2,547 Royalties (2,123) (2,300) 177 Insurance (811) (1,035) 224 Other (42) (404) 362 Professional Fees (5,566) (5,804) 238 Total Outflow (40,977) (49,756) 8,779 Net Cash Flow before financing charges (14,754) (20,365) 5,611 Red Kite Repayment (Note 2) (6,878) (6,885) 7 DIP Financing Fees (786) (772) (14) DIP & Other Interest (1,848) (2,128) 280 Net Cash Flow before DIP (24,266) (30,150) 5,884 DIP Advances 29,035 31,181 (2,146) Intercompany disbursement Net Cash Flow 4,769 1,031 3,738 Cash, beginning of period (September 14, 2012) 6,254 6,254 Cash, end of period (November 16, 2012) 11,023 7,285 3,738 Note 1 Note 2 Readers are cautioned to read the 'Restrictions on the Use of this Report' in Section 2 of this report. Information regarding Red Kite was provided in the Fourth Report. 6.2 During the nine weeks ended November 16, 2012, the Company s actual cash receipts were approximately US$3.2 million less than forecast due to lower than forecast gold production volumes at Hollister. Lower sold ounces were partially offset by higher unit selling prices. 6.3 Total disbursements for the period were approximately US$8.8 million less than the Cash Flow Forecast, primarily as a result of the lower than forecast payment of certain supplier obligations and lower than forecast payroll amounts, which is a combination of timing and permanent differences. 9

13 7.0 THE COMPANY S UPDATED CASH FLOW FORECAST 7.1 Senior Management, with the assistance of the Monitor, has prepared the Updated Cash Flow Forecast for the 13-week period ending February 15, 2013 (the Updated Cash Flow Period ). The Updated Cash Flow Forecast is attached as Schedule A, and is summarized in the table, below: Great Basin Gold Ltd. Summary of Forecast Cash Flow (Note 1) For the 13 Week Period Ending February 15, 2013 Unaudited (US$000's) Consolidated Canada (2) US Hollister (2) Burnstone (2) Forecast Cash Inflow Gold sales and other 28,012 27, Forecast Total Cash Inflow 28,012 27, Forecast Cash Outflow Suppliers (20,573) (230) (17,100) (3,243) Payroll and Benefits (9,803) (1,053) (7,032) (1,718) Royalties (1,399) (1,350) (49) Insurance (1,395) (521) (591) (283) Other (746) (346) (400) Professional Fees (12,467) (11,394) (50) (1,023) Total Forecast Outflow (46,384) (13,545) (26,123) (6,716) Net Cash Flow before financing charges (18,372) (13,545) 1,247 (6,074) Red Kite Repayment (8,832) (8,832) DIP Financing Fees (14) (14) DIP & Other Interest (3,183) (883) (550) (1,750) Net Cash Flow before DIP (30,400) (14,441) (8,135) (7,824) DIP Advances 5,965 5,965 Intercompany Transfers (2,800) 2,800 Net Cash Flow (24,435) (11,276) (8,135) (5,024) Cash, beginning of period (November 17, 2012) 11,023 6, ,167 Cash, end of period (February 15, 2013) (13,413) (5,273) (7,283) (857) DIP Balance February 15, ,000 12,265 7,950 14,785 (3) (3) Note 1 Note 2 Note 3 Readers are cautioned to read the 'Restrictions on the Use of this Report' in Section 2 of this report For cash flow purposes, the Company segregates its forecast by their geographical jurisdiction. The Updated Cash Flow Forecast presents a funding shortfall over the Updated Cash Flow Period of at least US$13.4 million, not considering any required cash that needs to be retained for the normal operations of the Company's cash management system. The above presentation assumes that the Company will have drawn the maximum available borrowings under the Approved DIP Facility of US$35 million. 10

14 7.2 On a consolidated basis, the GBG Group is forecast to experience net cash outflows (before DIP advances) of approximately US$30.4 million over the Updated Cash Flow Period, comprised of the following net cash outflow by region: a) GBG Canada net cash outflow of US$14.4 million; b) US Hollister net cash outflow of US$8.1 million; and c) South Africa Burnstone net cash outflow of US$7.8 million. 7.3 A summary of the forecast net outflow of US$30.4 million by operating and other key funding categories is tabled below: Summary Updated Cash Flow Forecast by key operating and other funding categories 13-Weeks Ending February 15, 2013 (000's USD) Net operating cash out flow $ 5,904 Red Kite repayment 8,832 Interest & financing fees 3,196 Professional fees 12,467 Total net cash out flow $ 30, As described in Note 3 in the table in Section 7.1 (above), the Updated Cash Flow Forecast currently anticipates that the Company will require, at least, an additional US$13.4 million in financing through the Updated Cash Flow Period over and above the maximum funding available under the DIP of US$35 million (i.e. total borrowings to reach at least US$48.4 million over the coming 13 week period). In this regard, the Company is continuing its discussions with the Approved DIP Lenders regarding an increase to the maximum borrowings available under the Approved DIP Facility. Financing anticipated through the restructuring period 7.5 As discussed previously, the Company has recently updated its extended cash flow forecast to March 31, 2013 (the contemplated last milestone date for the sale of the Burnstone and/or Hollister properties in the Approved DIP Facility). This forecast indicates that the Company will require a total of approximately US$60 million in 11

15 financing to that date, an increase from US$50 million in the prior version (which the Monitor communicated in the Fourth Report). The increase of approximately US$10 million in forecast funding is a combination of lower forecast gold sales at Hollister (as further described herein) and higher than originally anticipated actual and forecast professional fees. As indicated above, the Company is continuing its discussions with the Approved DIP Lenders regarding an increase to the maximum borrowings available under the Approved DIP Facility. 7.6 In addition, the Company is reviewing various options to sell certain mining assets that it currently holds in Tanzania, Africa, which, if any such sales are concluded, would provide the Company with unencumbered cash proceeds that could be used to provide limited funding for the Company s short term cash needs. 8.0 UPDATE ON THE BUSINESS RESCUE PROCEEDINGS IN SOUTH AFRICA 8.1 As noted in the Fourth Report, the South African Court granted the Business Rescue Practitioner ( BRP ) an extension to prepare a business rescue plan until January 15, The BRP is continuing with the claims process in order to assess total claims advanced against Burnstone. The claims filed in the Business Rescue proceedings to date total approximately US$38 million excluding claims from the Company s Convertible Debenture Holders and the Existing Burnstone Credit Facility. The Monitor will provide further updates on the claims process in its subsequent reports. 8.3 JP Morgan has been engaged as the transaction advisor with respect to the sale or restructuring of Burnstone. 8.4 The Monitor continues to be in regular contact with the BRP and has scheduled a series of meetings with the BRP and other Senior Management when the Monitor travels to South Africa during the week of November 26, The Monitor has recently been advised by the BRP that a technical issue has arisen in respect of the Business Rescue proceedings. The issue specifically relates to the 12

16 allegation of the lack of proper notice having been provided to the Company s Convertible Debenture Holders of the commencement of the Business Rescue proceedings. The Monitor has also been advised by the BRP that he intends to appear in the South African Court in the near term in order to seek the appropriate relief to remedy this outstanding issue. The Monitor will provide a further update to this Honourable Court once the BRP advises the Monitor of the outcome of its attendance before the South African Court. 8.6 Further information related to the BRP proceedings and the related claims process is being posted on GBGL s website ( 9.0 UPDATE ON THE STATUS OF THE HOLLISTER OPERATIONS 9.1 The Monitor visited the Hollister Operations during the weeks of October 29, 2012 and November 12, 2012, to discuss the recent operating results, short term forecasts and other matters with the Senior Management team located in Nevada ( Nevada Management ). 9.2 During this visit, the Monitor met with Nevada Management and reviewed the following: a) The revised revenue projections of the Hollister Operations over its expected restructuring period, which are now reflected in the Updated Cash Flow Forecast; b) The process by which the Company is reviewing the existing estimates of Hollister s gold reserves and resources (the Reserves ) with the assistance of a third party consulting firm in advance of launching the SISP; c) The work being performed by the Company and CIBC World Markets ( CIBC WM ) in respect of the proposed SISP; d) Current key employee turnover and related issues at Hollister and Senior Management s plans to retain such staff going forward; and e) Ongoing operating and supplier issues. 13

17 9.3 As a result of the above noted matters, certain adjustments have been made to the Company s cash flow forecasts which are now reflected in the Updated Cash Flow Forecast and the Company s extended cash flow forecast (provided to the Approved DIP Lenders). 9.4 The Monitor continues to actively monitor the status of the Company s efforts to review its existing gold reserve estimates and to retain its key employees and will update this Honourable Court in respect of these matters SALES AND INVESTOR SOLICITATION PROCESS - HOLLISTER 10.1 As noted in the Fourth Report, the Company has engaged CIBC WM as financial advisor to assist in completing either a sale of the property, assets and undertaking of Hollister (the GBGI Property ) and/or a recapitalization and/or restructuring of Hollister (the GBGI Business ). A SISP remains in draft, but is well advanced and continues to be reviewed by the Company s relevant stakeholders and advisors The Company intends to bring a motion before this Honourable Court, as soon as practicable, to approve the SISP with the caveat that in order for the Company to effectively launch the SISP, the review of the Reserves, as noted in Section 9.2(b) above, will need to be completed THE RETENTION OF A CHIEF RESTRUCTURING OFFICER 11.1 As noted in the Fourth Report, due to the requirements of the Second Waiver Letter and the departure of certain Senior Management by November 30, 2012, the Company s Board of Directors commenced a process to select and retain a CRO for the Company and GBGI. For this purpose a CRO Selection Committee was formed. As a result of the selection process, the Company, with the approval of the CRO Selection Committee, has agreed to engage Mr. Ray Dombrowski and Mr. Peter Gibson of Alvarez & Marsal ( A&M ) to assume the roles of Chief Executive Officer ( CEO ) and Chief Financial Officer ( CFO ), respectively, during the Company s restructuring period. Other A&M personal may be utilized in order to assist Messrs. Dombrowski and Gibson in carrying out their duties as CEO and CFO. 14

18 11.2 The roles and responsibilities of the new CEO and CFO, along with other terms and conditions of their appointment, are set out in the draft engagement letter (the Engagement Letter ) which is attached as Schedule B to this report The duties of A&M/Dombrowski/Gibson are comprehensive and require hands on stewardship of the Company s restructuring proceedings from a senior management perspective, including overseeing the implementation of the SISP and fulfilling Senior Management functions for the GBG Group (with the exclusion of Burnstone which is subject to the BRP/ Business Rescue proceedings) In its application to this Honourable Court, the Company is seeking approval of the engagement of A&M to provide a designated CEO and CFO for the Company. The Company is also requesting that the Administration Charge, as granted by this Honourable Court under the terms of the Initial Order, and as increased by further order of the Court, be further increased to $2,912,500 (from $2,712,500) with a pro-rata share of $200,000 of the Administration Charge to be allocated to A&M The Monitor supports (i) the engagement of A&M as proposed in the attached Engagement Letter and (ii) the request by the Company for a further increase in the amount of the Administration Charge and that a pro-rata share of $200,000 be allocated to A&M OTHER RESTRUCTURING EFFORTS Management and employee turnover 12.1 As discussed in the Monitor s Prior Reports, four members of GBGL s Senior Management team departed on October 30, 2012 with the remaining two members departing from the Company with an effective date of November 30, Included in these departures are the Company s Chief Executive Officer, Chief Financial Officer, Chief Operating Officer and other key positions. As discussed above, subject to the approval of this Honourable Court, members of A&M will be engaged as the new CEO and CFO for the Company effective immediately. Certain former members of Senior 15

19 Management have been retained by the Company pursuant to consulting contracts through to March 31, 2013 under the terms of the KERP In the past two weeks, GBGL s Financial Controller and Head of Finance, as well as Hollister s Head of Mill Operations have all resigned. The Company is currently in the process of negotiating a consulting contract with the Head of Finance for her continued services going forward for a defined period of time. The Head of Mill Operations at Hollister has been replaced with an internal appointment by the Company. Sales of non-core assets 12.3 As noted above, the Company is continuing to review its options to sell certain African assets and expects to consult with its key stakeholders in respect of the merits of these potential sale transactions. The Monitor is also reviewing with the Company and its financial advisors the logistics and benefits of these potential sale transactions and will report to this Honourable Court as to any progress made by the Company THE MONITOR S CONCLUDING OBSERVATIONS AND RECOMMENDATIONS Monitor s observations 13.1 The Monitor believes that the Company is acting in good faith and with due diligence in its efforts to further its restructuring initiatives Although the Settlement Agreement has taken longer to conclude than expected, it should become effective shortly as all parties thereto are working expeditiously to finalize the supporting documentation The Company is in need of increased funding in order to continue with its proposed restructuring. Such funding requirements are well in excess of the current maximum availability under the Approved DIP Facility. For the coming 13 weeks, additional funding of at least US$13.4 million is required over and above the maximum current availability of US$35 million. Over the period to March 31, 2013, total additional funding of US$25 million is required (again, over and above the current maximum 16

20 availability of US$35 million). Without additional funding, the Monitor is of the opinion that the Company may not be able to move forward with its current restructuring plans and may need to consider other options to sell non-core assets and/or reduce cash outflows. The Monitor understands that the Company is in ongoing discussions with the Approved DIP Lenders in order to secure the necessary additional financing Two members of the Senior Management team of the GBG Group are set to depart on November 30, This includes the current CEO/CFO. Although consulting arrangements are in place to secure the services of key management on an ongoing basis after November 30, 2012, the Company must replace its Senior Management in order to ensure that the Company has the necessary and appropriate management, oversight and governance. Accordingly, the Monitor is of the opinion that the Engagement Letter should be approved by this Honourable Court. Monitor s recommendation 13.5 The Monitor recommends to this Honourable Court that the Engagement Letter be approved substantially in the form as set out in Schedule B hereto and that the Administration Charge be amended accordingly. All of which is respectively submitted to this Honourable Court this 26 th day of November, KPMG Inc., in its sole capacity as Monitor of Great Basin Gold Ltd. Philip J. Reynolds Senior Vice President Anthony J. Tillman Senior Vice President 17

21 Unaudited Prepared by Management Great Basin Gold Ltd. CONSOLIDATED Consolidated Weekly Cash Flow Forecast For the 13 week period ending February 15, 2013 in $ 000's USD (except for ounces and price of Gold) Actual Actual Actual Actual Actual Actual Actual Actual Actual Week Week Ending 21 Sep 28 Sep 5 Oct 12 Oct 19 Oct 26 Oct 2 Nov 9 Nov 16 Nov 23 Nov 30 Nov 7 Dec 14 Dec 21 Dec 28 Dec 4 Jan 11 Jan 18 Jan 25 Jan 1 Feb 8 Feb 15 Feb Total Cash Receipts Ounces Sold 1,470 1,412 1,762 1,260 1,220 1,330 1,553 1, , ,800 1,100 1,100 1,100 1,500 1,500 1,500 1,500 1,500 1,500 16,800 Price per Ounce 1,754 1,801 1,812 1,846 1,849 1,817 1,773 1,745 1,768 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 Gold Sales 2,579 2,543 3,192 2,326 2,255 2,417 2,754 2,480 1,571 1,530 1,870 1,190 3,060 1,870 1,870 1,870 2,550 2,550 2,550 2,550 2,550 2,550 28,560 Other , , (548) (548) Total Cash Receipts 2,618 2,657 4,530 2,338 2,274 2,422 4,982 2,483 1,919 1,530 1,322 1,190 3,060 1,870 1,870 1,870 2,550 2,550 2,550 2,550 2,550 2,550 28,012 Cash Disbursements Suppliers (1,598) (2,221) (3,694) (1,611) (1,836) (3,562) (789) (889) (2,699) (1,446) (1,604) (864) (1,604) (1,484) (1,100) (1,540) (1,280) (1,680) (2,380) (2,314) (1,594) (1,684) (20,573) Payroll and Benefits (8,564) (866) (263) (698) (50) (2,008) (196) (839) (50) (1,606) (761) (895) (50) (1,437) (1,725) (1,000) (714) (672) (243) (700) (9,803) Royalties (787) (1,336) (49) (1,350) (1,399) Insurance (75) (186) (140) (186) (75) (148) (265) (79) (500) (75) (190) (265) (21) (1,395) Other (2) (105) 60 (20) (58) 52 (2) (0) 33 (400) (150) (100) (100) (750) Professional Fees (227) (11) (1,165) (965) (240) (2,719) (177) (44) (17) (4,609) (386) (25) (2,720) (200) (25) (213) (1,970) (175) (150) (25) (1,970) (12,467) Total Cash Disbursements (10,466) (3,389) (5,990) (3,295) (2,184) (8,423) (2,575) (1,773) (2,882) (7,662) (3,416) (1,863) (5,024) (3,196) (1,290) (3,339) (1,492) (4,750) (3,269) (4,751) (1,883) (4,454) (46,388) Net Cash Flow Before Financing (7,848) (732) (1,459) (957) 90 (6,002) 2, (963) (6,132) (2,094) (673) (1,964) (1,326) 580 (1,469) 1,058 (2,200) (719) (2,201) 667 (1,904) (18,376) Red Kite Repayment (988) (1,670) (1,275) (1,883) (1,062) (1,458) (1,487) (1,988) (957) (1,988) (957) (8,832) Interest Term loan I (1,750) (1,750) (550) (2,300) DIP Financing Fees (786) (5) (5) (5) (14) Interest (98) (59) (59) (59) (71) (71) (71) (71) (71) (71) (71) (71) (71) (71) (883) Net Cash Flow After Financing (8,836) (732) (1,459) (2,626) (1,185) (6,002) 2,407 (1,173) (4,659) (6,195) (2,157) (737) (5,243) (3,434) 510 (1,539) (1,000) (3,227) (789) (2,271) (1,391) (2,931) (30,404) DIP Advances 9,235 5,000 5,500 9,300 5,965 5,965 Intercompany Advances Net Cash Flow post DIP 399 (732) 3,541 (2,626) (1,185) (502) 2,407 (1,173) 4,641 (6,195) (2,157) (737) 722 (3,434) 510 (1,539) (1,000) (3,227) (789) (2,271) (1,391) (2,931) (24,440) Cash & Equivalents Position Opening Cash Position 6,254 6,653 5,921 9,462 6,835 5,650 5,149 7,556 6,382 11,023 4,828 2,671 1,935 2,657 (777) (267) (1,806) (2,806) (6,033) (6,823) (9,094) (10,485) 11,023 Net Cash Flow incl. DIP 399 (732) 3,541 (2,626) (1,185) (502) 2,407 (1,173) 4,641 (6,195) (2,157) (737) 722 (3,434) 510 (1,539) (1,000) (3,227) (789) (2,271) (1,391) (2,931) (24,440) Closing Cash Position 6,653 5,921 9,462 6,835 5,650 5,149 7,556 6,382 11,023 4,828 2,671 1,935 2,657 (777) (267) (1,806) (2,806) (6,033) (6,823) (9,094) (10,485) (13,416) (13,416) DIP Balance GBG Ltd 2,000 1,200 3,000 3,000 3,000 9,100 9,100 9,100 9,100 12,265 12,265 12,265 12,265 12,265 12,265 12,265 12,265 12,265 12,265 12,265 Burnstone 9,235 9,235 10,235 10,235 10,235 10,235 10,235 10,235 11,985 11,985 11,985 11,985 14,785 14,785 14,785 14,785 14,785 14,785 14,785 14,785 14,785 14,785 14,785 Hollister 2,000 2,800 4,000 6,500 6,500 6,500 7,950 7,950 7,950 7,950 7,950 7,950 7,950 7,950 7,950 7,950 7,950 7,950 7,950 7,950 7,950 Closing DIP Balance 9,235 9,235 14,235 14,235 14,235 19,735 19,735 19,735 29,035 29,035 29,035 29,035 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000

22 Unaudited Prepared by Management Great Basin Gold Ltd. CANADA Consolidated Weekly Cash Flow Forecast For the 13 week period ending February 15, 2013 in $ 000's USD (except for ounces and price of Gold) Actual Actual Actual Actual Actual Actual Actual Actual Actual Week Week Ending 21 Sep 28 Sep 5 Oct 12 Oct 19 Oct 26 Oct 2 Nov 9 Nov 16 Nov 23 Nov 30 Nov 7 Dec 14 Dec 21 Dec 28 Dec 4 Jan 11 Jan 18 Jan 25 Jan 1 Feb 8 Feb 15 Feb Total Gold Sales Other 6 (71) 29 Total Cash Receipts 6 (71) 29 Cash Disbursements Suppliers (1) (0) (11) (3) (17) (9) (12) (0) (100) (10) (50) (10) (50) (10) (230) Payroll and Benefits (261) (13) (42) (50) (566) (196) (14) (50) (155) (357) (20) (50) (193) (18) (50) (120) (22) (18) (50) (1,053) Royalties Insurance (15) (148) (500) (21) (521) Other (5) (55) (13) (22) (58) 52 (2) (0) (37) (150) (100) (100) (350) Professional Fees (227) (1,146) (950) (151) (2,703) (161) (28) (7) (4,459) (250) (2,695) (1,945) (100) (1,945) (11,394) Total Cash Disbursements (233) (316) (1,198) (1,014) (263) (3,234) (367) (54) (243) (4,615) (707) (30) (3,395) (243) 0 (28) 0 (2,095) (220) (72) (49) (2,095) (13,548) Net Cash Flow Before Financing (233) (316) (1,192) (1,014) (263) (3,234) (438) (54) (214) (4,615) (707) (30) (3,395) (243) 0 (28) 0 (2,095) (220) (72) (49) (2,095) (13,548) Red Kite Repayment DIP Financing Fees (786) (5) (5) (5) (14) Interest (98) (59) (59) (59) (71) (71) (71) (71) (71) (71) (71) (71) (71) (71) (883) Net Cash Flow After Financing (233) (316) (1,192) (1,014) (263) (3,234) (438) (54) (1,098) (4,678) (770) (93) (3,466) (313) (71) (99) (71) (2,166) (291) (143) (120) (2,166) (14,445) DIP Advances 9,235 5,000 5,500 9,300 5,965 5,965 Interco Non DIP disbursement (1,800) 1, (612) Interco disbursement (9,235) (3,000) (800) (1,200) (2,500) (3,200) (2,800) (2,800) Net Cash Flow post DIP (2,033) 1, (1,814) (1,388) 130 (265) (54) 4,390 (4,678) (770) (93) (301) (313) (71) (99) (71) (2,166) (291) (143) (120) (2,166) (11,280) Cash & Equivalents Position Opening Cash Position 4,452 2,419 4,097 5,004 3,189 1,802 1,932 1,667 1,613 6,003 1, (153) (223) (322) (393) (2,558) (2,849) (2,992) (3,111) 6,003 Net Cash Flow incl. DIP (2,033) 1, (1,814) (1,388) 130 (265) (54) 4,390 (4,678) (770) (93) (301) (313) (71) (99) (71) (2,166) (291) (143) (120) (2,166) (11,280) Closing Cash Position 2,419 4,097 5,004 3,189 1,802 1,932 1,667 1,613 6,003 1, (153) (223) (322) (393) (2,558) (2,849) (2,992) (3,111) (5,277) (5,277)

23 Unaudited Prepared by Management Great Basin Gold Ltd United States Consolidated Weekly Cash Flow Forecast For the 13 week period ending February 15, 2013 in $ 000's USD (except for ounces and price of Gold) Actual Actual Actual Actual Actual Actual Actual Actual Actual Week Week Ending 21 Sep 28 Sep 5 Oct 12 Oct 19 Oct 26 Oct 2 Nov 9 Nov 16 Nov 23 Nov 30 Nov 7 Dec 14 Dec 21 Dec 28 Dec 4 Jan 11 Jan 18 Jan 25 Jan 1 Feb 8 Feb 15 Feb Total Cash Receipts Nevada Ounces Sold 1,470 1,412 1,455 1,260 1,220 1,330 1,553 1, , ,100 1,100 1,100 1,100 1,500 1,500 1,500 1,500 1,500 1,500 16,100 Nevada Price per Ounce 1,754 1,801 1,825 1,846 1,849 1,817 1,773 1,745 1,768 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 22,100 2,579 2,543 2,655 2,326 2,255 2,417 2,754 2,480 1,571 1,530 1,870 1,190 1,870 1,870 1,870 1,870 2,550 2,550 2,550 2,550 2,550 2,550 27,370 Gold Sales 2,579 2,543 2,655 2,326 2,255 2,417 2,754 2,480 1,571 1,530 1,870 1,190 1,870 1,870 1,870 1,870 2,550 2,550 2,550 2,550 2,550 2,550 27,370 Other Total Cash Receipts 2,605 2,578 2,655 2,326 2,255 2,417 2,754 2,480 1,571 1,530 1,870 1,190 1,870 1,870 1,870 1,870 2,550 2,550 2,550 2,550 2,550 2,550 27,370 Cash Disbursements Suppliers (1,586) (1,419) (2,929) (1,344) (1,711) (3,417) (424) (377) (2,629) (1,000) (1,100) (600) (1,350) (900) (1,100) (1,350) (1,100) (1,500) (2,200) (2,000) (1,400) (1,500) (17,100) Payroll and Benefits (215) (605) (250) (657) (903) (825) (875) (875) (875) (1,707) (950) (225) (650) (225) (650) (7,032) Royalties (787) (1,336) (1,350) (1,350) Insurance (186) (50) (186) (190) (22) (190) (190) (591) Other (6) 4 Professional Fees (50) (50) Total Cash Disbursements (1,807) (2,211) (4,016) (2,000) (1,711) (4,506) (1,760) (1,202) (2,625) (1,875) (1,290) (1,497) (1,350) (1,775) (1,290) (3,057) (1,100) (2,450) (2,475) (4,190) (1,625) (2,150) (26,123) Net Cash Flow Before Financing (1,361) (2,090) 994 1,279 (1,054) (345) 580 (307) (1,187) 1, (1,640) ,247 Red Kite Repayment (988) (1,670) (1,275) (1,883) (1,062) (1,458) (1,487) (1,988) (957) (1,988) (957) (8,832) DIP Financing Fees Interest (550) (550) Net Cash Flow After Financing (190) 367 (1,361) (1,344) (730) (2,090) 994 (605) (2,116) (345) 580 (307) (938) (1,942) 580 (1,187) (537) (857) 75 (1,640) (1,062) (557) (8,135) DIP Advances Intero NON DIP funding 1,800 (1,934) Interco funding 2, ,200 2,500 1,450 Net Cash Flow post DIP 1,610 (1,566) 639 (544) (605) (666) (345) 580 (307) (938) (1,942) 580 (1,187) (537) (857) 75 (1,640) (1,062) (557) (8,135) Cash & Equivalents Position Opening Cash Position 110 1, ,129 2,123 1, , (157) (2,098) (1,518) (2,705) (3,242) (4,099) (4,024) (5,664) (6,726) 853 Net Cash Flow incl. DIP 1,610 (1,566) 639 (544) (605) (666) (345) 580 (307) (938) (1,942) 580 (1,187) (537) (857) 75 (1,640) (1,062) (557) (8,135) Closing Cash Position 1, ,129 2,123 1, , (157) (2,098) (1,518) (2,705) (3,242) (4,099) (4,024) (5,664) (6,726) (7,283) (7,283)

24 Unaudited Prepared by Management Great Basin Gold Ltd SOUTH AFRICA Consolidated Weekly Cash Flow Forecast For the 13 week period ending February 15, 2013 in $ 000's USD (except for ounces and price of Gold) Actual Actual Actual Actual Actual Actual Actual Actual Actual Week Week Ending 21 Sep 28 Sep 5 Oct 12 Oct 19 Oct 26 Oct 2 Nov 9 Nov 16 Nov 23 Nov 30 Nov 7 Dec 14 Dec 21 Dec 28 Dec 4 Jan 11 Jan 18 Jan 25 Jan 1 Feb 8 Feb 15 Feb Total Cash Receipts Burnstone Ounces Sold Burnstone Price per Ounce 1,650 1,650 1,750 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 21, ,155 1,155 Gold Sales 537 1,190 1,190 Other , , (548) (548) Total Cash Receipts , , (548) 1, Cash Disbursements Suppliers (11) (801) (754) (267) (122) (127) (356) (500) (70) (446) (404) (254) (254) (534) (180) (180) (180) (180) (264) (184) (184) (3,243) Payroll and Benefits (8,349) 0 (539) (576) (403) (369) (369) (1,718) Royalties (49) (49) Insurance (75) (75) (75) (75) (57) (75) (75) (283) Other 10 (51) (400) (400) Professional Fees (11) (19) (15) (89) (16) (17) (17) (10) (150) (136) (25) (25) (200) (25) (213) (25) (25) (150) (25) (25) (1,023) Total Cash Disbursements (8,426) (863) (776) (280) (210) (683) (449) (517) (10) (1,172) (1,419) (336) (279) (1,179) 0 (254) (392) (205) (574) (489) (209) (209) (6,716) Net Cash Flow Before Financing (8,412) (784) 1,094 (268) (194) (678) 1,851 (517) 308 (1,172) (1,967) (336) 911 (1,179) 0 (254) (392) (205) (574) (489) (209) (209) (6,074) Red Kite Repayment DIP Financing Fees Interest (1,750) (1,750) (1,750) Net Cash Flow After Financing (8,412) (784) 1,094 (268) (194) (678) 1,851 (517) (1,442) (1,172) (1,967) (336) (839) (1,179) 0 (254) (392) (205) (574) (489) (209) (209) (7,824) DIP Advances Intero NON DIP Advances (59) (99) (75) (365) (173) 612 Interco Advances 9,235 1,000 1,750 2,800 2,800 Net Cash Flow post DIP 823 (844) 1,994 (268) (269) (1,042) 1,678 (517) 920 (1,172) (1,967) (336) 1,961 (1,179) 0 (254) (392) (205) (574) (489) (209) (209) (5,024) Cash & Equivalents Position Opening Cash Position 1,692 2,514 1,671 3,665 3,397 3,128 2,086 3,764 3,247 4,167 2,995 1, ,652 1,474 1,474 1, (439) (648) 4,167 Net Cash Flow incl. DIP 823 (844) 1,994 (268) (269) (1,042) 1,678 (517) 920 (1,172) (1,967) (336) 1,961 (1,179) 0 (254) (392) (205) (574) (489) (209) (209) (5,024) Closing Cash Position 2,514 1,671 3,665 3,397 3,128 2,086 3,764 3,247 4,167 2,995 1, ,652 1,474 1,474 1, (439) (648) (857) (857)

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