Kinbauri Gold Corp.

Kinbauri Gold Corp.

September 27, 2007 09:12 ET

Underground Exploration Development is Underway at Kinbauri's El Valle Mine in NW Spain

Drilling El Valle 208 Area Gold Zone, Carles Gold-Copper Zones And Godan Moly-Gold Targets

OTTAWA, ONTARIO--(Marketwire - Sept. 27, 2007) - Kinbauri Gold Corp. (TSX VENTURE:KNB) ("Kinbauri") is pleased to report that a contract has been awarded to INSERSA of Huelva, Spain to complete 500 metres of drifting at the 175 level of the El Valle mine to allow better access for completion of 24,000 plus metres of definition drilling at Area 107 and Black Skarn and to test mine Area 107. Completion of these programs is part of Kinbauri's plan to advance toward recommencement of mining and milling operations at the El Valle complex. Although Kinbauri will continue to have 2 drills operating underground at the 325 level during the 3 months that it will be required to complete the underground development work, two additional drills will be redeployed from underground at El Valle to begin surface drilling of potential extensions of (i) the 208 Area gold zone at El Valle, (ii) the gold-copper mineralized skarn at Carles North and (iii) the Mo-bearing granodiorite stock at Godan.

Six Holes to Test for New Resources in Area 208 Gold Target: In 2003, Rio Narcea Gold Mines Ltd. ("RNGM") began to explore for an epithermal gold zone paralleling the El Valle Fault (Area 107). This resulted in the discovery of Area 208, some 100 metres to the east, where drill hole Val 194 intersected 5.5g Au/t over a true width of 2.8 metres. This was followed up with Val 208, which intersected 13.5g/t over a true width of 4.3 metres. Kinbauri's objective with its 1,750 metres of drilling (6 holes) is to increase the inferred resources of 215,000t at 9.94 g Au/t attributed to Area 208; these inferred resources form a part of the EV Fault resources (254,000t at 11.10g Au/t) reported by Ore Reserves Engineering ("ORE") on March 21st, 2007 (N.I. 43-101 Technical Report, filed July 3rd, 2007 on SEDAR).

Underground Drilling to Expand Carles Cu/Au Resources: At Carles, 1150 metres are to be drilled from underground platforms to add to the Carles North and Carles East measured and indicated resources of 109,200 oz Au (633,000t @ 5.4 g Au/t) and 9.68M lbs Cu (633,000t @ 0.70% Cu) and inferred resources of 55,000 oz Au (345,000t @ 5.0g Au/t and 4.4M lbs Cu (345,000t @ 0.58% Cu), as estimated by ORE on March 21st, 2007 (N.I. 43-101 Technical Report, filed July 3rd, 2007 on SEDAR). In addition, plans are being implemented to extend the Carles open pit to allow the removal of approximately 300,000t of mineralized material grading 3.4 g Au/t and 0.6% Cu upon recommencement of operations at the El Valle mill.

Significant Molybdenum Found at Godan; New Targets Investigated: Two holes totalling 600 metres are to be drilled on the Godan exploitation concession to investigate the extent of the molybdenum-bearing granodiorite where drill hole SAL-6X intersected 0.15% Mo and 0.55 g Au/t over 54.1 metres, including 0.45% Mo and 1.28g Au/t over 9.8 metres; the latter interval included 1.21% Mo and 3.19 g Au/t over 2.5 metres. SAL-6X was drilled vertically; the Mo mineralization began at a depth of 276 metres. Please note that the disclosure on page 2 of our press release of August 22nd, 2007 concerning "Mo mineralization at its Godan property where 0.15% Mo over 5.4m including 0.45% over 28m, was reported" is incorrect. These values incorrectly describe the intersections reported above for SAL-6X (the correct values can be confirmed in ORE's 43-101 Technical Report filed on Sedar, July 3rd, 2007).

At El Valle, initial review of drill hole records revealed a number of holes under the north end of the El Valle pit that contained significant Mo values:

Drill Hole From To Metres(2) Mo (%) Au (g/t) Cu (%)

VAL 171 (1) 62.3 67.10 4.8 0.05 .867 .78
VAL 170 (1) 93.25 96.2 2.95 0.07 1.295 .92
VAL 129 156.65 181.50 24.85 0.05 .193 .05
including 167.10 173.00 5.90 0.14 .308 .03
VAL 56 264.90 269.5 4.60 0.30 7.692 1.36
including 267.15 268.00 0.85 1.39 .649 .40

1 Ore intersected by VAL 170 and VAL 171 was removed during
development of the El Valle pit.
2 True widths are approximately 65% of reported intersections for
VAL 56, VAL 129 and VAL 170 and 95% for VAL 171.

The above intersections were mostly contained within altered garnet skarn; part of the VAL 29 intersection was contained within grayish altered granite containing disseminated sulphides. Channel samples from exposures of similar rock types, some 30 metres north of holes VAL 129 and VAL 59, did not show any Mo values above 60 parts per million. Quartz veins containing traces of molybdenite in fresh granites from drill holes 07KV1006, 07KV1019 and 07KV1022 were also sampled; Mo was consistently anomalous, but did not exceed 221 parts per million.

Kinbauri plans to review all drill records at El Valle and Carles for additional reported Mo intersections and favourable rock types for Mo mineralization; one unit at Carles has been described as a molybdenite skarn in the literature (Journal of Geochemical Exploration 2000, v.71). RNGM retained most drill core samples from El Valle and Carles and core believed to contain Mo will be sampled and analyzed.

All operations in Spain, including data collation and review, are being supervised by Santiago Gonzalez-Nistal, Kinbauri Espana's senior geologist, with quality control being provided by Dr. C.F. Gleeson, P.Eng., Kinbauri's Vice President of Exploration: both are qualified persons as defined by N.I. 43-101. RNGM's Quality Assurance program for it's drill holes reported herein are detailed in their press release of January 20th 2006. This press release was prepared by Dr. V. N. Rampton, P. Eng in his capacity as a qualified person.

Kinbauri is a TSXV - Tier 1 mineral exploration company focused on the development of precious metal prospects in north-western Spain, Nevada and Canada. Its immediate focus is to expand and upgrade resources to reserves at the El Valle property in Asturias, Spain with a view to recommencement of operations at the mine and mill complex there. It currently has 43,372,320 common shares issued and outstanding and 67,056,236, fully diluted.


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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