Mr. Dean Nawata reports

KAPUSKASING GOLD SIGNS MOU WITH FIRST NATIONS AND RECEIVES DRILLING & EXPLORATION PERMITS FOR ITS PROPERTIES IN NORTHERN ONTARIO

Kapuskasing Gold Corp. has signed a memorandum of understanding (the MOU) with Brunswick House, Chapleau Cree, Chapleau Ojibway and Flying Post first nations with respect to KAP's gold exploration projects located in Northern Ontario near the town of Chapleau. In conjunction with the MOU, the company has received exploration permits from the Ontario Ministry of Northern Development and Mines.

The MOU establishes the desire for first nations and Kapuskasing Gold to work together, creating a long-term, mutually beneficial, co-operative and respectful relationship with the spirit of social, ecological, cultural and economic well-being. The MOU also signals a commitment by KAP to identify opportunities for businesses and citizens of the four communities to participate in KAP's exploration activities through business, employment and training opportunities.

Dean Nawata, president of the company, states: "We are pleased to begin building a relationship with the first nations with the successful negotiation and execution of this MOU acknowledging their rights, traditional values and culture. We look forward to working with the communities, having their input and advice in order to maintain a socially and environmentally responsible exploration program. The company would also like to acknowledge and thank the Wabun Tribal Council for their role in facilitating a smooth process with the first nations communities and government bodies."

Shawn Batise, executive director of the Wabun Tribal Council, states: "We commend KAP's pro-active approach in engaging with the first nations with respect to their projects near the town of Chapleau. The MOU outlines opportunities for social, environmental and economic participation with KAP's exploration projects. Our experience working with KAP illustrates the positive results achieved when industry and first nations work together towards a common goal. We look forward to following KAP's progress through the development of their exploration projects."

Chief Kevin Tangie of Brunswick House First Nation commented: "Brunswick House First Nation is pleased to finalize the MOU with KAP. We are impressed with their pro-active approach to engaging with the first nations. We look forward to continued and meaningful participation throughout KAP's projects."

We seek Safe Harbor.