Mr. Michael Skead reports

KILO GOLDMINES LTD.: EXPLORATION ACTIVITIES UPDATE

Kilo Goldmines Ltd. is providing an update on its exploration activities at the Imbo licence (PE9691) within the Ngayu greenstone belt.

Highlights

• Relogging of Adumbi drill core and modelling of geology and mineralization have identified a high-grade zone of mineralization that can be traced across the entire length of the prospect and downdip.
• This high-grade zone has an average true thickness of 4.91 metres at 5.44 grams per tonne over 840 m on strike and 275 m downdip.
• Relogging of all core from the Kitenge, Manzako, Vatican and Senegal prospects is complete.
• Geological and mineralization modelling of the Kitenge, Manzako, Vatican and Senegal prospects is continuing.
• Adumbi West induced polarization survey and geological mapping are in progress.
• Drilling is scheduled to commence in March, 2015.

Detailed geological and mineralization modelling, that resulted from the relogging of Adumbi drill hole core, has identified a distinctive, high-grade zone of mineralization. This zone of mineralization is associated with alteration and structural deformation that has completely destroyed the primary host lithological characteristics and is termed replaced rock zone (RP zone).

The RP zone has been identified in the lower part of the upper BIF package and in the lower BIF package. The upper and lower BIF packages are separated by a carbonaceous marker which the RP zone transgresses both along strike and downdip. Lithologies and the RP zone strike northwest-southeast and have a dip of 80 degrees to the northeast. The RP zone can be traced along strike for 840 metres and downdip to 275 m below surface. The average true width and weighted average grade of all drill hole intersections of the RP zone are 4.91 metres at 5.44 grams per tonne gold. In the central 480 m portion of the Adumbi prospect, the average is 6.41 m at 6.25 g/t Au.

The RP zone has several higher-grade shoots that plunge steeply to the northwest at 80 degrees and these will be targeted in the upcoming planned drill program. The orientation of the high-grade RP shoots is similar to the fold axes mapped in the colonial underground workings.

In addition to the RP zone, three other zones of mineralization have been defined:

• Zone 1 is located toward the top of the upper BIF.
• Zone 2 is at the bottom of the upper BIF package in the hangingwall of the carbonaceous marker.
• Zone 3 is in the lower BIF package in the footwall of the carbonaceous marker.

Final interpretation of the pole-dipole induced polarization orientation survey over the Adumbi prospect has been received and the mineralization corresponds with well-developed chargeability and resistivity anomalies. An IP survey has been initiated over the Adumbi West target and it is continuing. This survey will be extended to cover targets such as the potential extension of the Adumbi prospect southeast of Canal and cover soil geochemical anomalies between the Kitenge and Manzako prospects.

The data review exercise that has been reported in previous press releases is currently in progress for the Kitenge, Manzako, Vatican and Senegal prospects.

The company intends to initiate a detailed stream sediment sampling program to cover the entire Imbo licence in mid-February. This survey will comprise 166 sampling sites, with an average catchment area of 0.75 square kilometre.

Michael Skead, the interim chief executive officer of Kilo, said: "The detailed geological review process that was initiated under new technical guidance has highlighted the potential of the Adumbi and neighbouring prospects which will be drill tested beginning in March, 2015. The review has resulted in a more complete understanding of the host lithology, controlling structure and mineralization, providing for better target selection. Targets such as Vatican and Senegal take on a greater focus as a result of these studies."

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.