Mr. Sergei Stetsenko, an investor, reports

SERGEI STETSENKO ANNOUNCES PURCHASE OF SHARES IN KILO GOLDMINES LTD.

Sergei Stetsenko has provided an update of his direct and indirect acquisition of shares of Kilo Goldmines Ltd.

Mr. Stetsenko is the chief executive officer and beneficial owner of CRG Finance AG, an investment company based out of Zug, Switzerland. Between Dec. 28, 2017, and Jan. 5, 2018, CRG Finance purchased, through market transactions on the TSX Venture Exchange, 3,737,000 common shares of the corporation, representing approximately 2.2 per cent of the corporation's outstanding common shares. The common shares were purchased at an average price of 4.1 cents per common share for total proceeds of $153,425.

Prior to this sale, the purchaser directly owned and controlled an aggregate of 10,043,000 common shares, while CRG Finance directly owned and controlled an aggregate of 3,025,000 common shares. In addition, the purchaser owns and controls, directly or indirectly, an aggregate of 2.3 million common share purchase warrants of the corporation, 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. These holdings represented approximately 7.7 per cent of the then issued and outstanding common shares on a non-diluted basis and 9.1 per cent on a partially diluted basis assuming exercise of the warrants.

Following this sale, the purchaser, directly, and through CRG Finance, owns and controls an aggregate of 16,805,000 common shares and 2.3 million warrants, representing approximately 9.9 per cent of the outstanding common shares on a non-diluted basis and 11.3 per cent on a partially diluted basis assuming exercise of the warrants.

The common shares were purchased for investment purposes. The purchaser has a long-term view of the investment and may acquire additional shares either on the open market or through private acquisitions or sell the shares either on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

A copy of the early warning report with respect to the foregoing will appear with Kilo Goldmines' profile on SEDAR and may also be obtained by contacting: Mr. Stetsenko at telephone: 417-9318-3937 or e-mail: s.serge@gmail.com.