Mr. Alex van Hoeken reports

KILO INTERSECTS ADDITIONAL HIGH GRADE TARGETS AT KITENGE: 3.75 M GRADING 27.08 G/T GOLD

Kilo Goldmines Ltd. has released results from diamond drill hole SKDD0035 totalling 293.20 metres, an undercut hole of the previously announced drill hole SKDD0021, that intersected 5.80 metres at 42.24 grams per tonne (g/t) gold (Au) (see press release dated Nov. 1, 2012).

The Kitenge prospect is now defined over a 1,500-metre strike length and is one of several exploration prospects that form part of Kilo's Somituri project in northeastern Democratic Republic of Congo (DRC). Kitenge is approximately four kilometres from Kilo's 1.87-million-ounce Adumbi inferred gold resource estimate and, like Adumbi, falls within the Imbo licence.

To date, 11 diamond drill holes delineate the high-grade zone within the 1,500-metre-long Kitenge structure, defined to shallow depths of about 65 metres, the two deepest intercepts being 125 metres and 145 metres vertically below surface. The Kitenge structure remains open on strike and at depth.

The key intercept in hole No. 35 occurs at a downhole depth of 165.8 metres and is followed by several other gold occurrences more down the hole that also correlate with similar intercepts in the footwall of hole No. 21, about 60 metres above. The gold intercepts in both holes are well defined geologically as they are hosted within the Kitenge shear zone that is estimated to be 75 metres wide based on visual observation of alteration and structure. The Kitenge structure is considered to show many of the characteristics of mesothermal gold deposits, where zones of high-grade mineralization occurs as defined shoots within a major structure and can exceed depths of two kilometres below surface (Red Lake, Ont.).

Alex van Hoeken, president and chief executive officer of Kilo, stated: "These additional deeper gold intersections at Kitenge, provide some of the clearest evidence yet of the continuity of high-grade gold values with depth. These deeper, higher-grade results support the need for additional drilling over the entire Kitenge structure.

"We now have additional confidence that, not only is the structure open on strike, but the width and gold tenor is likely to increase with depth. Kitenge is rapidly shaping up to be one the better prospects identified on the underexplored Imbo licence and additional drilling is planned to delineate the extent of the high-grade zone, possibly steeply plunging gold shoots that occur within the Kitenge main shear zone."

Gold intersections for drill hole SKDD0035 are listed in the associated table, while the location of the Kitenge holes drilled to date and the location of the Kitenge prospect relative to the Imbo licence boundaries are given in images on the company's website.

 
 GOLD INTERSECTIONS IN KITENGE DRILL HOLE SKDD0035, SOMITURI PROJECT, DRC                             
                                    
Drill hole         From (m)      To (m)   Interval (m)            Au (g/t)

SKDD0035             165.80      169.55           3.75               27.08
                     178.40      182.00           3.60                0.73
                     211.80      212.20           0.40                2.40
                     235.85      237.40           1.55                0.78
                     278.20      284.20           6.00                0.74
 

Previously reported high-grade gold intersections over a 700-metre strike length of the 1,500-metre Kitenge prospect, are listed by section line from southeast to northwest in the associated table (press releases dated Nov. 1, 2012, and Jan. 14, 2012).

  KITENGE PROSPECT HIGH-GRADE GOLD INTERSECTIONS IN THE KSZ, SOMITURI PROJECT                   
      
Drill hole           From (m)       To (m)        Interval (m)        Au (g/t)

SKDD0022                71.35        74.30                2.95            9.19
SKDD0003               133.50       136.80                3.30            6.71
SKDD0021                78.20        84.00                5.80           42.24
SKDD0031               114.07       116.55                2.48            4.23
SKDD0018                70.85        74.77                3.92           13.60
SKDD0030               152.70       160.50                7.80           11.47
SKDD0017               100.15       105.84                5.69            1.62

The Kitenge shear zone target

Gold at Kitenge occurs with quartz-carbonate-pyrite-plus/minus-pyrrhotite-plus/minus-arsenopyrite-plus/minus-chalcopyrite in a northwest-southeast-oriented dominant shear zone hosting a continuous auriferous quartz vein, that dips about 80 degrees northeast, termed the Kitenge shear zone (KSZ).

Preliminary interpretation concludes that the KSZ is of the order of 75 metres wide, bedding parallel to subparallel and characterized by highly sericitized and silicified fine-grained clastic metasedimentary rocks. In addition gold mineralization also occurs in the footwall and hangingwall rocks of the KSZ.

The KSZ continues northwest as the about-1,500-metre-long Senegal prospect, which in turn continues northwest as the Canal prospect followed by the Adumbi gold deposit. The structure continues northwest from the Adumbi gold deposit as the Adumbi West prospect. Each prospect has been left laterally offset by postgold mineralization faults.

The Senegal prospect is flanked to the immediate northeast by a linear magnetic high. Soil sampling on line 22720, about 800 metres northwest of the most northerly Kitenge prospect drill hole, (SKDD0017) returned a gold value of 69.6 g/t and a follow-up trench returned 2.30 metres at 4.56 g/t Au and 2.40 metres at 1.265 g/t Au. Diamond drilling in 2012 returned 3.30 metres at 2.49 g/t Au from 14.50 metres to 17.80 metres, and 3.85 metres at 0.97 g/t Au from 82.20 metres to 86.05 metres in hole SSDD0001. Thus, soil sampling, trenching and drilling results clearly indicate that the Kitenge prospect continues northwest as the Senegal prospect and these prospects are open on strike and to depth.

Drill hole SSDD0001 was collared on a magnetic azimuth of 220 degrees and drilled on an inclination of minus 50 degrees for 205.74 metres.

Toward the southeast from Kitenge drill hole SKDD0022, gold mineralization was intersected on five section lines spaced at 160-metre intervals. Drill holes on line 24640 intersected 16.70 metres at 1.32 g/t Au (SKDD0011) and 14.05 metres at 1.35 g/t Au indicating that the KSZ also hosts gold mineralization in excess of 10 metres in (true) width. Farther southeast the KSZ is left laterally fault offset toward the northeast and the gold-bearing shear zone continues southeast as the Lion prospect.

About the Somituri project

The Somituri project comprises eight exploitation licences, covering 606 square kilometres of the Archaen Ngayu greenstone belt in the northeastern Democratic Republic of Congo.

According to historic records, unverified by Kilo, the Kitenge and Manzako mines produced approximately 100,000 ounces of gold to 1955, while the Adumbi gold mine produced approximately 200,000 ounces of gold from quartz vein ore that averaged 11 g/t gold during the 1940s until its closure in 1959.

The Mineral Corporation (April, 2012), based in Johannesburg South Africa, calculated a National Instrument 43-101-compliant inferred gold resource estimate of 1.87 million ounces grading 1.63 g/t Au using a 0.50 g/t Au cut-off for the Adumbi prospect.

Quality control and analytical procedures

The drill core was sawn in half with a diamond saw and a half core of each sample was placed into plastic bags and stapled shut. Commercial standards and blanks were inserted in every batch of samples submitted for analysis in accordance with industry practice. Sample preparation was carried out at the Kilo on-site laboratory managed by ALS Chemex. Sample pulps were shipped from the DRC to ALS Chemex in Johannesburg, South Africa, by commercial courier. Gold analysis was determined on a 50-gram charge by the fire assay with atomic absorption finish method. ALS Chemex is accredited to international standards.

Quality control of analytical results is monitored by Kilo with the insertion of commercial standards and blanks in every batch of samples submitted for analysis. For additional details the reader is referred to Kilo's previously announced (see May 4, 2010, press release) quality control and analytical procedures.

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