Kaminak Gold Corporation

Kaminak Gold Corporation

September 01, 2009 08:30 ET

Kaminak's Partner Proposes Drill Program on Cry Lake (Nizi Creek) Gold-Silver Project, British Columbia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 1, 2009) - Kaminak Gold Corporation (TSX VENTURE:KAM) today announced that the company's 100% owned Cry Lake Gold-Silver Project, formerly known as the Nizi Creek Gold-Silver Project, is now optioned to Solomon Resources Ltd. (TSX VENTURE:SRB). A diamond drill program for September 2009 is being proposed by Solomon, who will solely fund and conduct the program.

On August 6th, 2008, Avasca Inc., a private, B.C. based mineral exploration company led by the established Gold Group, signed an option agreement with Kaminak on the Cry Lake Project. On July 7th, 2009, Solomon acquired Avasca and inherited the original Kaminak-Avasca Cry Lake option agreement. Under the terms of this agreement, Solomon has the right to earn a 51% project interest by incurring exploration expenditures totalling $2 million and making staged share payments totalling 400,000 Units to Kaminak by December 31, 2011. Solomon has issued Kaminak 100,000 Units and is required to incur a minimum of $300,000 in exploration expenditures by December 31, 2009 on the Cry Lake project. Each Unit issued to Kaminak consists of one common Solomon share and one warrant entitling Kaminak to purchase one additional common Solomon share for 12 months at a price per share set in accordance with the market price of Solomon's common shares at the time of issuance of the Units.

About The Cry Lake Gold-Silver Project

The Cry Lake Project is located 80 kilometres northeast of Dease Lake, British Columbia within the Sylvester Allochthon, a set of thrust-bounded terranes which host gold-bearing epithermal type veins associated with felsic volcanic rocks.

Gold mineralization on the Cry Lake Property is associated with shears, faults and fractures within the poorly understood and highly metamorphosed Rapid River tectonite. To date, seven main zones, including the highly-prospective Discovery Vein / Surprise Vein Zone, have been identified consisting of high-grade gold-silver vein-hosted mineralization over a north-westerly elongate area 2 kilometres long by 1 kilometre wide.

Channel samples of the Discovery Vein by earlier operators returned the following selected high-grade values: 27.09 grams per tonne (g/t) gold and 1220.6 g/t silver over 2.0 meters; 15.09 g/t gold and 1073.2 g/t silver over 3.5 meters and 8.91 g/t gold and 596.6 g/t silver over 1.0 meter (British Columbia Geological Branch Assessment Report 22840). Limited shallow drilling by earlier operators, including Madrona Mining Limited in the mid 1990's, confirmed the surface assays but to date no deeper drilling has been conducted. A program of geological and structural mapping and petrographic studies conducted in 2007 by Kaminak's former partner, Romios Gold Resources Inc., suggested that the known stockwork mineralization may represent the upper portion of a larger vein system at depth, and a series of diamond drill targets was proposed but never tested.

The Discovery Vein represents the best exploration target to date identified on the Cry Lake property, with assay values up to 41.0 g/t gold although more typical channel samples returned 1.5 to 30.0 g/t gold and 190 to 1200 g/t silver over widths of 1.0 to 2.0 meters.

About Kaminak

Kaminak Gold Corporation is an opportunity focused, prospect generator whose technical strength and entrepreneurial drive is complemented by a proven, successful business model designed to create shareholder value. The company has an extensive portfolio of discovery-stage projects that offer world-class exploration potential and present exposure to strategic commodities with an emphasis on gold.

Kaminak's financial discipline has enabled the company to acquire a healthy treasury, remain debt-free and maintain a very low corporate burn-rate. Well positioned to take advantage of the current market, Kaminak is actively engaged in seeking out market-friendly opportunities that are value-driven with high-potential for discovery.

On behalf of the Board of Directors of Kaminak

Rob Carpenter, Ph.D., P.Geo., President and CEO

Kaminak Gold Corporation

Kaminak is a member of the Discovery Group of companies. For more information on the group please visit www.discoveryexp.com.

Certain disclosures in this release, including management's assessment of plans and projects and intentions with respect to listings of securities, use of proceeds and future exploration programs, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kaminak's operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. Kaminak expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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