Kilo Goldmines Ltd.
TSX VENTURE : KGL

Kilo Goldmines Ltd.

October 21, 2009 18:07 ET

Kilo Announces Increase to Stock Option Plan/Grant of Options

TORONTO, ONTARIO--(Marketwire - Oct. 21, 2009) - Kilo Goldmines Ltd. (TSX VENTURE:KGL) ("Kilo" or the "Company") announced today that, subject to shareholder and regulatory approval, it has increased the number of common shares reserved under its stock option plan. The increase has been authorized by the board to maintain the ratio of shares reserved under the plan to outstanding shares at 15%, as a result of the Company's recently completed private placement financing. An additional 3,270,981 common shares have been reserved for issuance under the plan.

The Company has also granted options to acquire an aggregate of 4,526,500 common shares to directors, officers and consultants of the Company and its subsidiaries under its stock option plan. Each option is exercisable to acquire one common share at a price of $0.45 per share for a five-year period. The options, other than for investor relation consultants, vest as to one-third immediately and one-third on each of the 7 and 13 month anniversaries of the date of grant. Options for investor relations consultants vest as to one-quarter immediately and one-quarter on each of the 4, 7 and 13 month anniversaries of the date of grant. Other than 1,650,000 of the options already reserved for issuance under the option plan, all options are subject to shareholder approval for the increase in the Company's option plan and will only be exercisable if and when such shareholder approval is received. All options granted are subject to regulatory approval and a four-month holding period.

The Company also announces that David Carbonaro and Mark Arnesen have resigned from the board of directors and the Company wishes to recognize and thank them for their service as directors. The board is now comprised of four directors and the Company does not presently intend to fill these vacancies on the board.

The Company also wishes to announce the completion of the previously announced debt settlement with contractor GBM Minerals Engineering Consultants Limited of the United Kingdom. The Company has issued 861,303 common shares at a deemed price of C$0.45 per share pursuant to the debt settlement transaction and all shares issued are subject to a 4-month hold period.

About Kilo Goldmines Ltd. 
Kilo is a Canadian-based exploration company focused on gold exploration in North Kivu and Oriental Provinces of the DRC. The Company is focused on adding shareholder value through exploration success. Kilo also supports local social programs and operates in a manner that respects the environment.

This news release may contain forward looking statements concerning future operations of Kilo Goldmines Ltd. All forward looking statements concerning the Company's future plans and operations, including management's assessment of the Company's project expectations or beliefs may be subject to certain assumptions, risks and uncertainties beyond the Company's control. Investors are cautioned that any such statements are not guarantees of future performance and that actual performance and exploration and financial results may differ materially from any estimates or projections. 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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