Mr. Philip Gibbs reports

KILO GOLDMINES ANNOUNCES RESULTS OF STREAM SEDIMENT SAMPLING SHOWING A 7KM MINERALISED EXTENSION AND CANCELLATION OF STOCK OPTIONS

Kilo Goldmines Ltd. is releasing the results of a BLEG (bulk-leach-extractable-gold) stream sediment sampling program on its Imbo licence (PE9691) within the Ngayu greenstone belt.

Highlights:

• BLEG sampling in the eastern half of the Imbo licence area, previously unexplored by Kilo, indicates a southeastward extension of the Adumbi-Kitenge-Manzako mineralized trend over a strike of seven kilometres. The presence of gold mineralization is supported by rock chip sampling with values up to 15.1 grams per tonne gold.
• Three stream catchments with anomalous gold and arsenic values occur outside the area of known mineralization in the western part of the licence.

BLEG sampling program

Drainage catchments in the Imbo licence were defined using a five-metre colour elevation image and hydrography vector map produced from Landsat data by Photosat in Toronto. In addition, a two m topographic contour map, also generated by Photosat, was used where necessary. A total of 166 drainage catchments were defined with a total area of 113 square kilometres, resulting in an average catchment size of 0.68 square kilometre.

At each sampling site, three kilograms of the finest-grained sediment (mud) was collected from the top of the steam bed. A duplicate sample was taken at every fifth site for quality control purposes. The samples were thoroughly dried at the Adumbi base camp, with 1.1 kilograms of each sample sent to ALS Minerals in Ireland for analysis. Gold was analyzed by cyanide leach bottle roll on one kilogram of sample. Arsenic and a suite of 51 other elements were determined by aqua regia digestion of 0.5 gram of sample followed by ICP-MS and ICP-AES.

Quality control

Analytical quality was assessed by means of randomly inserted standard reference materials and blanks, all of which passed the company's quality control criteria. Sample representivity was assessed by comparing analyses of the original samples and 33 field duplicates; good correlations were obtained, indicating that the sampling technique produced reliable, representative samples with a low nugget effect.

Analytical results

The following observations can be made:

• There is a close spatial relationship between catchments with higher gold and arsenic values and the known mineralization at the Adumbi, Kitenge, Manzako and Vatican prospects. It is probable that mining during colonial times, followed by intense artisanal activity over several decades, has increased the amount of gold released into the associated drainages.
• To the west of the Imbo River, anomalous values of 108 parts per billion gold (346 parts per million arsenic), 62 parts per billion Au (790 parts per million As) and 324 parts per billion Au (234 parts per million As) were returned for catchments 13, 21 and 48, respectively. These catchments are not covered by the current soil sampling grid and warrant further investigation.
• To the east of the Imbo River (an area not previously explored on the ground by Kilo), the Au and As data indicate a southeastern extension of the Adumbi/Kitenge/Manzako mineralized zone over a strike of about seven kilometres. Anomalous values in this area range up to 719 parts per billion Au and 140 parts per billion As, the highest values occurring in the Esio area, where several colonial adits are located.
• Rock chip samples, taken in the Esio area during the BLEG survey, assayed up to 15.1 g/t Au for quartz veins, 7.91 g/t Au for the host quartz-carbonate schist and 6.39 g/t for altered banded-iron-formation (BIF) float.

Planned follow-up work

The catchments with anomalous gold values described above will be further investigated, with priority given to the extension of the Adumbi-Kitenge-Manzako zone to the east of the Imbo River. This work will have the objective of defining targets for drilling and will initially comprise soil sampling on 160 m spaced lines, mechanical auger drilling and trenching.

Cancellation of stock options

Kilo has cancelled 743,750 stock options previously granted to directors, management and consultants under the employee stock option plan. The cancelled options had expiry dates of July 7, 2016, or June 19, 2018, at exercise prices of $2.00 and $1.20, respectively.

Qualified person

Dr. Howard Fall, BSc, PhD, MAusIMM, QP (Geo), is the qualified person (as such term is defined under National Instrument 43-101) of Kilo and has reviewed the scientific and technical information contained in this release.

We seek Safe Harbor.