Mr. Alex van Hoeken reports

KILO GOLDMINES LTD.: 1100 METRE GOLD GEOCHEMISTRY ANOMALY DELINEATED AT ADUMBI WEST PROSPECT, SOMITURI PROJECT, DEM. REP. CONGO

Kilo Goldmines Ltd. has released the results and interpretation of the soil geochemical survey on the Adumbi West prospect, Imbo licence, Democratic Republic of Congo, which has defined a gold anomaly over a strike length of 1,100 metres. The gold values are similar to those on the Adumbi prospect, 2.5 kilometres to the east, that hosts a National Instrument 43-101-compliant inferred resource of 1.87 million ounces grading 1.63 grams per tonne (g/t) Au at a 0.50 g/t cut-off.

Highlights

• 1,100-metre gold geochemistry anomaly delineated;
• Adumbi West exhibiting similar geophysical and geochemical characteristics to the Adumbi prospect;
• Adumbi West underlain with banded iron formation;
• No evidence of historic exploitation on Adumbi West;
• Adumbi West gold geochemistry anomaly 2.5 kilometres west of the Adumbi prospect;
• Gold values up to 1.6 g/t in soil.

Alex van Hoeken, president and chief executive officer of Kilo, stated: "The completion of the recent geochemical soil sampling and subsequent interpretation with anomalous gold values over a significant area, especially together with the interpreted results of our previous geophysical program, is extremely encouraging. Gold values of 1.6 g/t for soil geochemistry samples is regarded as significant and this, together with our geophysical interpretation, coupled with the fact there appears to be no evidence of previous mining, certainly warrants further and more detailed systematic exploration. This result demonstrates the systematic approach of the company's exploration team to continue to explore, delineate and asses new and existing targets to increase the mineral potential of the company's portfolio."

Imbo geology

The Imbo licence, interpreted from the 2012 airborne magnetic and radiometric survey, coupled with field and drill core observations, comprises northwest-trending mafic volcanic rocks flanked to the southwest and to the northeast with metasedimentary rocks, including banded iron formation (BIF), as illustrated in an image on the company's website. A series of approximately north-south-trending faults, interpreted from the geophysics, structurally control the area.

Imbo gold-in-soils

A contour map of 7,888 soil geochemical samples, with analyzed gold values covering a portion of the Imbo licence, has been overlain onto the geophysical airborne magnetic map. Geochemical soil anomalies comprise samples that returned gold values greater than 250 parts per billion (ppb) Au. An image on the company's website illustrates the contoured gold value anomalies are truncated in close proximity to the north-south-trending faults. In general, anomalous gold values are coincident with the areas historically mined indicating perhaps the gold soil geochemistry values are representative of the known underlying in situ gold mineralization. However, several gold-in-soil anomalies, not associated with known gold exploitation, were delineated, but at Adumbi West there are no known historically mined or current artisanal areas of exploitation.

Adumbi West -- Adumbi prospect

An image on the company's website illustrates the gold geochemical soil values for the individual sample locations over the Adumbi prospect, as well as over the Adumbi West prospect. Soil samples across the 120-metre width that defines the westernmost drill target returned gold values of up to 1,640 ppb Au with fragmented BIF, a known gold host, represented in places. Gold values from soil samples collected over the magnetic anomaly that partly defines the Adumbi West prospect delineated a linear gold-in-soil anomaly 1,100 metres in length overlying the northern flank of the magnetic anomaly. Topographically the Adumbi West prospect is gently undulating, whereas the Adumbi prospect is a steep-sided hill that rises approximately 130 metres above the base elevation.

Soil sampling procedures

Sample collection

Between 2010 and 2012 soil samples were collected at a depth of one metre on precut grid lines spaced at intervals that varies from 80 metres to 320 metres. GPS co-ordinates were acquired for each sample site. Approximately two kilograms of material present at the one-metre sample depth was collected and placed into a plastic bag together with a prenumbered sample tag and the bag was stapled shut.

Determination of anomalous gold values

Statistical analysis of the gold-in-soil values for all 7,888 samples, excluding quality control samples, indicates that the anomalous threshold is 250 ppb gold. The anomalous threshold was determined by the sample population mean plus two times the sample population standard deviation after cutting 135 samples to a statistically determined 550 ppb Au. The contours for the gold values in an image on the company's website were generated by inverse distance squared (ID2) utilizing an ellipsoid with one axis 500 metres long oriented normal to lithological strike and one axis 2,500 metres long oriented parallel to the lithological strike which is also the strike of the gold-bearing shear zones.

About the Somituri project

The Somituri project comprises eight exploitation licences, covering 606 square kilometres, valid until 2039, of the Archaean Ngayu greenstone belt in the northeastern Democratic Republic of Congo.

According to historic records, which have not been verified by Kilo, the Kitenge and Manzako mines produced approximately 100,000 ounces of gold to 1955, while the Adumbi/Bagbaie gold mines produced approximately 200,000 ounces of gold, from quartz vein ore that averaged 11 g/t gold, during the 1950s until its closure in 1959.

The Imbo licence hosts a number of gold-bearing prospects, some of which are currently being drilled. Adumbi prospect is the most advanced prospect on the Imbo licence with an NI 43-101-compliant inferred resource estimate as follows:

• 1.87 million ounces grading 1.63 g/t Au at a 0.50 g/t cut-off grade;
• 1.63 million ounces grading 2.04 g/t Au at a one g/t cut-off grade.

The resource estimate was calculated in April, 2012, by the Mineral Corp. based in Johannesburg, South Africa.

Quality control and analytical procedures

Sample preparation consisted initially of sorting the samples into numerical sequential order, followed by drying, crushing and pulverizing of the entire sample. The 2010 and 2011 soil samples were shipped, by commercial carrier, to ALS Minerals sample preparation laboratory in Mwanza, Tanzania. Preparation of the 2012 samples was carried out at the Kilo-owned, ALS Minerals-managed-and-operated Somituri project exploration camp on-site laboratory. Sample pulps were couriered to ALS Minerals full-service laboratory in Johannesburg, Gauteng, South Africa, from Mwanza during 2010 and 2011 and from the Democratic Republic of Congo during 2012. Gold was determined on a 30-gram charge by fire assay with ICP finish method. In addition, multielement analysis was carried out by the ICP method. ALS Minerals is accredited to international standards.

Analytical quality control was monitored by Kilo with the insertion of approximately 9-per-cent quality control samples consisting of duplicates as well as commercial blank and standards in every batch of samples submitted for analysis.

Qualified person

The soil sampling program disclosed in this press release was planned and supervised by Stanley Robinson, the company's exploration manager. Stanley Robinson, MSc, PGeo, is also the qualified person (as such term is defined under National Instrument 43-101) of the company who has reviewed and verified the scientific and technical information contained in this release.

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