GoldSands Development Company's Test Production Begins

   GoldSands Development Company (OTCBB: GSDC)(OTCQB: GSDC) is pleased to announce that pursuant to the Agreement signed on January 18th, 2011 with Swiss Mining S.A, the alluvial gold extraction test on the Company's Mika 2 in Peru was initiated on March 28th.

We are pleased to announce that Swiss Mining S.A., currently the largest operator in this area of the Amazon basin, has begun test mining production at GoldSand's Mika 2 site. The initiation of this test production is a significant step forward for our Company. We believe that it will provide important information, enabling an assessment of the feasibility of planning and implementing commercial gold production on our Peruvian GoldSands properties. We anticipate releasing initial recovery numbers within a few weeks.

Michael Stocker, Goldsand's CEO states:

"Because the initial area sampled may contain isolated hot or cold spots (of unusually high or low gold yields), GoldSands Development Company will not attempt to reach a conclusion about alluvial gold yield based upon just a few days production. Instead, the Company will analyze and report production figures to shareholders, only after having analyzed a flow of production information over a period of several weeks."

About Swiss Mining S.A.

Swiss Mining SA, located in Lima, Peru, is a company organized and incorporated under Peruvian laws. It is owned and actively controlled by Swiss Mining and Consulting Ltd. The company's general manger, Rafael Villarroel Mansilla, has a decade-long experience with alluvial mining.

Swiss Mining S.A. is currently in the business of developing, and if feasibility is determined, conducting mineral resource alluvial mining operations. As the largest operator in this area of the Amazon basin, they have the knowledge, experience and trained work force necessary to conduct an efficient operation. Swiss Mining is utilizing a new trommel plant with centrifugal concentrators, in order to optimize the operational footprint, and thus minimize environmental impact during this test production venture.

Constitution Mining's drilling program, which has located placer ore bodies, was completed within the MIKA 2 Concession in 2010. A review of the findings made in regard to these alluvial deposits provided the basis for this Agreement between the two companies. The Agreement designates that Swiss Mining will carry out a test mining operation on the MIKA 2 Concession, located in the Peruvian Province of Datem del Maranon, District of Manseriche. The results will be studied to determine if an expanded agreement between the parties covering a larger area is justified.

About GoldSands Development Company

The Company's goal is to fully develop our Peruvian GoldSands project The Company's GoldSands project in Peru consists of options on 461 square kilometers (178 square miles) of mining property, the largest such block in the district. These GoldSands were laid down by eons of alluvial erosion. For millions of years, the waters of the Santiago and the Maranon rivers have been carving their way through the gold-rich mountain canyons of the Andes, carrying off gold and depositing it in the loose gravels and sands - GoldSands - in the area the Company now controls.

Results from test holes drilled during GSDC's 26-hole Phase I exploratory drill program indicate the presence of alluvial gold. The Company has also completed its Phase II drill program focused on grid drilling a 2.5 square kilometer region. While the results from both the Phase I drill program and the Phase II, 100-hole drill program are favorable, the Company cautions that these results do not yet indicate the presence of a commercially viable mineral deposit and further exploration is needed to determine the full feasibility of the project. The Company has signed an agreement with Swiss Mining S.A. to begin a test mining production program within the 2.5 square kilometer area of the recent 100-hole drill program.

Additionally, the Company has completed a social baseline study involving a series of meetings with local residents and other stakeholders in the region. We intend to work in an equitable, transparent, and socially responsible manner with local communities, suppliers and employees. We will act as stewards of the local and regional ecological systems, behaving in an environmentally responsible way, leaving a minimal "footprint" as a result of our operations. Our company is working towards building trust and sustaining relationships that go well beyond mining operations. This approach to the development of the area provides a platform for continual dialogue to identify and address any project with a high business potential in relation with our gold exploration efforts with a focus on building long-term relationships for development of the region of Manseriche and Loreto in the best interests, not only of Peru, but for our investors and shareholders as well.

The full implementation of these programs will require the Company to secure additional financing.

Further information about GoldSands Development Company may be found at:

http://www.goldsandsco.com

On behalf of the Board:

Dr. Michael Stocker, CEO, GoldSands Development Company

Disclaimer

This release contains forward-looking statements that are based on beliefs of GoldSands Development Company management and reflect GoldSands Development Company's current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities and Exchange Act of 1934, as amended. When we use in this release, the words "estimate," "project," "believe," "anticipate," "intend," "expect," "plan," "predict," "may," "should," "will," "can," the negative of these words , or such other variations thereon, or comparable terminology, are all intended to identify forward looking statements. Such statements reflect the current views of GoldSands Development Company with respect to future events based on currently available information and are subject to numerous assumptions, risks and uncertainties, including but not limited to, risks and uncertainties pertaining to development of mining properties, changes in economic conditions and other risks, uncertainties and factors, which may cause the actual results, performance , or achievement expressed or implied by such forward looking statements to differ materially from the forward looking statements. The information contained in this press release is historical in nature, has not been updated, and is current only to the date shown in this press release. This information may no longer be accurate and therefore you should not rely on the information contained in this press release. To the extent permitted by law, GoldSands Development Company and its employees, agents and consultants exclude all liability for any loss or damage arising from the use of, or reliance on, any such information, whether or not caused by any negligent act or omission.

Contacts: Investor Inquiries: GoldSands Development Company North America Toll Free: 800-215-0811 Direct Dial: 360-339-7309 [e-mail] www.goldsandsco.com