Kinbauri Gold Corp.

Kinbauri Gold Corp.

May 31, 2006 08:00 ET

Kinbauri Gold Corp. Completes Corcoesto Drill Program: Open-Pit Re-Evaluation Inspires New Drill Program

CARP, ONTARIO--(CCNMatthews - May 31, 2006) - Kinbauri Gold Corp. (TSX VENTURE:KNB) is pleased to announce the successful completion of the 2006 spring drilling program at its Corcoesto gold property ("Corcoesto") in northwestern Spain. The results confirm the continuation of high grade veins with depth at the southern portion of Corcoesto and the presence of shallow auriferous vein systems in the relatively unexplored northern portion of Corcoesto.

To date, Kinbauri's drill programs at Corcoesto have been targeted at expanding the high grade resources for underground mining. In 2003, Rio Narcea Gold Mines, Ltd. (RNGM) undertook in-fill drilling to evaluate the feasibility of an open-pit heap leach operation and numerous high-grade zones were intersected, indicating good potential for a high grade underground mine. RNGM's drilling was focused on three vein systems in the southern portion of Corcoesto (the "Southern Systems"). With gold at $350 per ounce, RNGM subsequently suspended further detailed work.

Reassessment of open-pit potential inspires new drill program
The current gold price environment suggests positive viability for (and a re-evaluation of) complementary open-pit development at Corcoesto. Previous trenching and drilling by RNGM on a series of vein systems north of the Southern Systems, in combination with results reported below, indicate that these northern vein systems (the "Northern Systems") have good potential to add significant shallow, open-pittable resources to those resources already delineated by RNGM.

A soil geochemical survey, 681 metres of trenching and 355 metres of
drilling were completed as part of Kinbauri's recently completed
spring program on the Northern Systems to assess the potential of
known and undiscovered shallow open-pittable resources there. The
most significant gold assays from the trenched vein systems (see for location and extent of vein systems) were
from south to north:

- Lobo North: 1.39g/t over 2m and 3.37g/t over 2m.
- Montefurado: 5.7g/t over 3m including 7.75g/t over 2m.
- Fonterremula: 1.91g/t over 1m, 2.21g/t over 1m and 2.26g/t over
- Picotos (east extension): 2.54g/t over 7m including 6.86g/t over 2m
and 3.19g/t over 1.5m

Two drill holes (drilled at inclinations of -45 degrees) on the
Northern Systems also intersected significant grades at shallow
depths (intersections approximate 90% true width):

- Fonterremula: DDH 06K21, had an intersection of 2.72g/t over 5.35m,
beginning at 37.4m down-hole and including 7.17g/t over 1.25m.
- Picotos: DDH 06K15, (previously reported in press release of March
20th, 2006) had intersections of (i) 5.00g/t over 5.25m, beginning
at 54.9m down-hole and including 10.20g/t over 1.15m and (ii)
1.53g/t over 8.9m, beginning at 26.0m and including 3.00g/t over

These results in combination with a compilation of available data from this area indicate good potential for significant shallow open-pittable resources. Consequently, Kinbauri has planned a drill program of 6,400 metres, primarily focused on the Northern Systems, to delineate resources extractable by open pit and/or ramp.

New mineral resource estimate

Kinbauri is commissioning a mineral resource estimate compliant with N.I. 43-101 that will incorporate new resources identified during Kinbauri's drill programs (totalling some 4,378 metres since May, 2005) with the resources previously identified by RNGM. Management is confident that these resources in combination with new resources delineated by its planned program will advance the project to a point where a preliminary economic study for an open pit mine can be undertaken.

Kinbauri's programs at Corcoesto were supervised by Dr. C.F. Gleeson, P.Eng., Vice-President of Exploration and a qualified person under N.I. 43-101. For details of Kinbauri's treatment of samples and quality control program, please refer to Kinbauri press release of March 2, 2006.

A number of previous press releases, which can be viewed on
Kinbauri's web-site,, give recent results from
the deeper drilling focused on the high grade veins at Corcoesto:

- March 22, 2006: Peton de Lobo yields 13.44g Au/t over 2.1 meters.
- April 20, 2006: Drilling at Peton de Lobo extends high grade gold
- May 16, 2006: High grade at Pozo del Ingles including 10.3g Au/t
over 2.5m.

Kinbauri is a junior gold exploration company with 9,469,189 common shares issued and outstanding and 10,217,189 fully diluted. Kinbauri can earn a 65 percent interest in Corcoesto from RNGM by expending 4,000,000 euros over five years (for full details, refer to press release of March 7, 2005).

This press release was prepared by Dr. V.N. Rampton, P.Eng. in his capacity as a qualified person.


This press release contains certain forward-looking statements, which are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected. Kinbauri undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

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