Mr. Michael Skead reports

KILO GOLDMINES LTD.: EXPLORATION ACTIVITIES UPDATE

Kilo Goldmines Ltd. is providing an update on its exploration activities on its Imbo licence within the Ngayu greenstone belt.

Highlights:

• The Adumbi West IP survey and geological mapping are in progress.
• Drilling is scheduled to commence in the first quarter of 2015.
• Data review for Adumbi has been completed.
• Relogging of Kitenge core has been completed.
• Relogging of Manzako core is continuing.

A pole-dipole induced-polarization orientation survey comprising five and two lines has been conducted over the Adumbi and Kitenge prospects, respectively. The objectives of this IP orientation survey were to assess the IP response in known zones of mineralization with the view, if positive, to applying the technique in other areas of potential mineralization, especially in those areas of transported cover. Initial indications are that clearly defined chargeability anomalies are associated with the mineralization with corresponding resistivity lows. Final interpretation of the data is pending.

Detailed geological mapping has been completed over the Adumbi West target, which is possibly the faulted extension of the Adumbi prospect trend. The Adumbi West target is defined by a two-kilometre-long magnetic anomaly, which has very similar characteristics to the principal Adumbi prospect. Coincident with this magnetic anomaly is a low-level gold-in-soil geochemical anomaly. However, the area covering the Adumbi West target is interpreted to be overlain by transported overburden of varying thickness, which is probably masking the underlying geochemical response. The low-level soil geochemical anomaly is most likely a result of bioturbation. Several zones of artisanal mining activity are present on the flanks of the strong magnetic feature where the artisanal miners are typically focusing on high-grade quartz veins. A systematic IP orientation survey has commenced over the coincident magnetic and gold-in-soil anomalies with the view to defining zones of mineralization for drill testing in the first quarter of 2015.

The data review exercise reported in a previous news release has been completed for the Adumbi prospect and is currently in progress for the Kitenge and Manzako prospects.

The review of Adumbi drilling data has led to a more in-depth analysis of structural controls on mineralization focusing on delineating high-grade structural controls. This is being assessed in conjunction with previously completed detailed underground mapping with the objective of defining additional down-plunge drill targets. Wire-frame modelling of mineralization and structural features is being re-evaluated accordingly and is continuing.

Relogging of 15,298 metres of diamond drill core and construction of cross-sections and long sections at the Kitenge prospect has been completed. Lithological, alteration and mineralization wire frames are currently in preparation.

At the Manzako prospect, relogging of 8,286 metres is approximately 46 per cent complete with a view to being completed by year-end.

Michael Skead, the interim chief executive officer of Kilo, said: "We are reaching an exciting phase of the exploration program to expand the resources on the Imbo licence. The ongoing extensive review of all known available data is allowing the exploration team to redefine geological and mineralization models for the known prospects. These models are being applied to other untested drill targets, such as Adumbi West. We anticipate that drilling will commence in the first quarter of 2015."

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.