Mr. Sergei Stetsenko of CRG Finance reports

SERGEI STETSENKO & CRG FINANCE AG ANNOUNCES 6% HOLDING IN KILO GOLDMINES LTD.

Kilo Goldmines Ltd. has provided the following update. Sergei Stetsenko, chief executive officer and beneficial owner of CRG Finance AG, an investment company based out of Zug, Switzerland, now has direct and indirect holding of approximately 6 per cent of the issued and outstanding shares of the company.

As of the date hereof, Mr. Stetsenko, directly and through CRG Finance, owns and controls an aggregate of 10,192,300 common shares in the capital of the corporation, representing approximately 6 per cent of the corporation's issued and outstanding common shares on a non-diluted basis based on the number of common shares indicated as issued and outstanding shares on the website of the TSX Venture Exchange. In addition, Mr. Stetsenko owns and controls, directly or indirectly, an aggregate of 2.3 million common share purchase warrants of the corporation.

Mr. Stetsenko directly owns and controls an aggregate of 7,442,300 common shares, while CRG Finance directly owns and controls an aggregate of 2.75 million common shares. In addition, Mr. Stetsenko owns and controls, directly or indirectly, an aggregate of 2.3 million warrants, with an aggregate of two million warrants held directly and 300,000 warrants held by CRG Finance. Each warrant entitles the holder to purchase one additional common share at a price of 13.5 cents per common share. Assuming each warrant is exercised, Mr. Stetsenko would, directly or indirectly, own and control an aggregate of 12,492,300 common shares, representing approximately 7.3 per cent of the corporation's issued and outstanding common shares.

The common shares of the corporation are held for investment purposes. Mr. Stetsenko may, depending on market and other conditions, increase or decrease his holdings in the corporation as circumstances warrant.