Mr. Philip Gibbs reports

KILO GOLDMINES ANNOUNCES PROPOSED NON-BROKERED PRIVATE PLACEMENT

Kilo Goldmines Ltd. intends to proceed with a non-brokered private placement of equity units to raise gross proceeds of $2,002,000 to a maximum of $3,003,000. The units will be offered at a price of seven cents per unit and each unit will consist of one common share and one non-transferable common share purchase warrant of the company. Each warrant will entitle the holder to acquire one additional common share of the company for two years at a price of 9.5 cents. Kilo has been advised that a fund managed by one of the Sprott group of companies intends to subscribe for units in the offering.

The company will use the net proceeds from the offering for working capital and general corporate purposes, and to maintain its Somituri gold property in the Democratic Republic of the Congo.

The company will pay finders' fees to registered dealers in connection with the offering of 7.0 per cent in cash and 5.0 per cent in finders' warrants, each finder's warrant exercisable to acquire one common share of the company at a price of seven cents per share for two years.

Insiders of the company may subscribe for up to 75 per cent of the offering.

The private placement is subject to all necessary regulatory approvals, including approval of the TSX Venture Exchange. All securities issued pursuant to the private placement will be subject to a four-month restricted resale period.