Mr. Philip Gibbs reports

KILO GOLDMINES ANNOUNCES CLOSING OF PRIVATE PLACEMENT

Kilo Goldmines Ltd. has completed its previously announced non-brokered private placement of equity units, raising gross proceeds of approximately $909,000. Due to lower than expected demand, the size of the minimum offering was decreased from that previously disclosed. The units were offered and sold at a price of seven cents per unit with each unit consisting of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one additional common share of the company until Dec. 24, 2017, at a price of 9.5 cents. All securities sold in the offering, including any shares issued on exercise of the warrants and finders' warrants, are subject to a four-month hold period in Canada expiring on April 25, 2015, and such other hold periods in other jurisdictions applicable to the purchaser.

The company plans to 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.

Oban Mining Corp., a significant shareholder of the company, acquired 2.9 million units under the offering. Prior to the offering, Oban directly owned 12.7 million common shares and warrants to acquire a further 11.2 million common shares of the company. Following the offering, Oban now owns 15.6 million common shares, representing approximately 22.4 per cent of the number of common shares issued and outstanding, as well as warrants to acquire up to a further 14.1 million common shares of the company. Assuming the exercise of all warrants by Oban only and no other exercises, Oban would own up to approximately 36.7 per cent of the number of common shares of the company on a partially diluted basis.

Directors and officers of Kilo also acquired an aggregate of 285,717 units under the offering.

As a result of the participation in the offering by the insiders noted above, the offering was considered to be a related-party transaction as defined under Multilateral Instrument 61-101 and TSX Venture Exchange Policy 5.9. The transaction was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 and Policy 5.9, however, as neither the fair market value of the securities issued to insiders nor the cash consideration paid for such securities exceeded 25 per cent of Kilo's market capitalization. The participants in the offering and the extent of such participation were not finalized until shortly prior to the completion of the offering. Accordingly, it was not possible to publicly disclose details of the nature and extent of related-party participation in the offering at least 21 days prior to the completion date.

Kilo paid finders' fees of $36,171 in cash and issued 369,090 finders' warrants in connection with the offering, each exercisable to acquire one common share of the company at a price of seven cents until Dec. 24, 2017.