Mr. Philip Gibbs reports

KILO GOLDMINES ANNOUNCES NEW SIGNIFICANT SHAREHOLDER AND OPERATIONAL UPDATE

Kilo Goldmines Ltd. has been advised that Resolute (Treasury) Pty. Ltd., a wholly owned subsidiary of Resolute Mining Ltd., has acquired all common shares of Kilo previously owned by Osisko Mining Inc. Based on public filings, Resolute now owns 46,568,000 common shares, representing approximately 27.4 per cent of the outstanding common shares, and warrants to acquire a further 24.7 million common shares. Assuming the exercise of all warrants by Resolute, Resolute would own approximately 36.6 per cent of the outstanding common shares of Kilo on a partially diluted basis. Based on public filings, after giving effect to the sale, Osisko beneficially owns or controls, directly or indirectly, warrants to acquire 21.1 million common shares of Kilo. Assuming the exercise of all warrants by Osisko, Osisko would own or control approximately 11.1 per cent of the outstanding common shares of Kilo on a partially diluted basis.

In announcing the transaction securing a 27.4-per-cent interest in Kilo, John Welborn, managing director and chief executive officer of Resolute, commented as follows:

"We are pleased to have increased our stake in Kilo at this exciting time. Kilo is about to commence drilling at a range of untested targets in close proximity to their Adumbi prospect in the Democratic Republic of [the] Congo which forms part of the Somituri project. Kilo has a large landholding in the Kilo-Moto region and, in addition to the Somituri project, has a joint venture with Randgold on the Isiro project. We see Resolute's expertise and skill set being a strong match with the ideology and strategy of Kilo's management, and look forward to future exploration results.

"Resolute is seeking to build a portfolio of investments in well-run, highly prospective, gold exploration assets in regions considered to hold potential for the development of future Resolute gold mines. Kilo is a perfect match for our criteria of existing asset quality, future prospectivity, relative value and an experienced capable management team primarily focused on gold project exploration and development."

David Netherway, chairman of Kilo, commented on the announcement:

"Kilo Goldmines is delighted to have the strong shareholder support that Resolute's investment brings to the company. Discussion with Resolute's board and management have commenced on possible technical co-operation, as well as how Resolute can best support Kilo's operations and ambitions, and it is expected that in due course Resolute will nominate a non-executive director to join the Kilo board.

"Resolute's initial investment in Kilo was through participation in the recent financing to commence a further exploration phase at the Adumbi prospect. We are pleased to confirm that the contract for an 8,800-metre drilling program has been awarded to Orezone Drilling SARL, and that drilling at the untested targets of Adumbi South, Adumbi West and Kitenge, which are in close proximity to the Adumbi prospect, will commence shortly. Kilo's aim is to outline a resource of approximately three million ounces at approximately three grams per tonne gold so as to proceed with a preliminary economic study."

About Kilo

Kilo Goldmines is a Canadian gold exploration company that holds exploitation and exploration licences covering approximately 2,417 square kilometres of favourable Archaen Kabalian greenstones (the Ngayu belt) in the northeast Democratic Republic of the Congo, an area historically referred to as the Kilo-Moto region, a historic gold-producing region.

Incorporated within these licences are the Somituri project (71.25 per cent owned by Kilo), comprising six non-contiguous licences (361 square kilometres) held by KGL-Somituri SARL, and the KGL Isiro SARL joint venture with Randgold Resources Ltd. (2,056 square kilometres), for gold and associated minerals only. In addition, Kilo has retained the rights to explore for and develop iron ore resources and other minerals associated with the licences held by KGL Isiro SARL.