Mr. Philip Gibbs reports

KILO COMMON SHARES TO COMMENCE TRADING ON 1 FOR 10 CONSOLIDATED BASIS/PRIVATE PLACEMENT UPDATE

Kilo Goldmines Ltd. has been advised by the TSX Venture Exchange that its common shares will commence trading on a one-for-10 consolidated basis at the opening of trading on Monday, March 31, 2014, under the new Cusip No. 49427Y503. There will be no change in Kilo's trading symbol. The consolidation was approved by shareholders at the company's annual and special meeting held on March 6, 2014.

Letters of transmittal will be mailed to registered Kilo common shareholders on March 28, 2014, requesting them to deposit their share certificates representing preconsolidated Kilo common shares with Kilo's transfer agent, TMX Equity Transfer Services, in exchange for share certificates representing the consolidated common shares. No fractional common shares will be issued in connection with the consolidation, and any fractional entitlements will be rounded up or down to the next highest or lowest whole number of shares.

As a result of anti-dilution adjustments applicable to the listed warrants of Kilo in connection with the consolidation, 10 warrants will now be required to acquire one postconsolidated common share at a price of $1.50 per share. The warrants expire on March 20, 2016.

Following the announcement of a proposed private placement offering of equity units on March 25, 2014, Kilo has received a strong positive response and expressions of interests for the entire maximum offering of $6-million of units. Closing is expected to occur on or about May 2, 2014, following the special meeting of shareholders that has been called for May 1, 2014, to obtain the required shareholder approvals for the placement. The private placement remains subject to the approval of the TSX-V.

We seek Safe Harbor.