Mr. Alex van Hoeken reports

KILO GOLDMINES ANNOUNCES PROPOSED SHARE CONSOLIDATION

At Kilo Goldmines Ltd.'s annual meeting to be held on March 6, 2014, shareholders will be asked to approve a share consolidation resolution. If approved by the shareholders, the corporation's board of directors will have the authority, at its sole discretion, to proceed with a share consolidation on the basis of one postconsolidation common share for up to every 10 preconsolidation common shares. Such authority would lapse at the next annual meeting of the Kilo shareholders. The corporation's outstanding stock options and share purchase warrants would be adjusted on the same basis, with proportionate adjustments to the exercise prices.

The board of directors and management of Kilo have concluded that it may be necessary for the corporation to consolidate its common shares in order to increase the corporation's flexibility with respect to potential business transactions, including future financings. Shareholders' approval of this resolution does not necessarily mean that a share consolidation will occur, rather it will provide the board of directors the flexibility to implement a share consolidation if determined by the board to be in the best interest of the corporation and its shareholders.

There are currently 319,349,978 common shares issued and outstanding. The table indicates the approximate number of common shares that would be outstanding if a share consolidation were to be effected today.

                  POSSIBLE OUTSTANDING SHARES

                                 Number of outstanding common shares     
Proposed consolidation ratio                      (postconsolidation)            

1:10                                                      31,934,997                 
1:9                                                       35,483,330                 
1:8                                                       39,918,747                 
1:7                                                       45,621,425                 

The consolidation is subject to shareholders approval at the upcoming annual and special meeting of shareholders and to the prior acceptance by the TSX Venture Exchange. Should a consolidation be implemented, the corporation would at that time issue a further news release confirming the consolidation ratio as well as the effective date. Letters of transmittal with appropriate instructions would also be mailed to shareholders at such time.

Implementation of a share consolidation will not give rise to a change in the corporation's name.

We seek Safe Harbor.