Mr. Philip Gibbs reports

KILO COMMENTS ON RECENT TRADING ACTIVITY

Kilo Goldmines Ltd. has been requested by the Investment Industry Regulatory Organization of Canada to comment on the recent increase in the trading volume and price of the company's common shares on the TSX Venture Exchange. The company is not aware of any material change in its business or affairs that has not been publicly disclosed that would account for the recent increase in volume or price. On July 27, 2016, the company announced a non-brokered private placement of units at 10 cents per unit to raise gross proceeds of up $7.5-million, of which $930,000 of the placement has been completed to date. The company plans to use the net proceeds from the private placement for the exploration of its gold properties in the Democratic Republic of the Congo, and for working capital and other general corporate purposes.