Kinbauri Gold Corp.

Kinbauri Gold Corp.

March 13, 2008 12:53 ET

Engineering and Mine Planning Underway at Kinbauri's El Valle Project

OTTAWA, ONTARIO--(Marketwire - March 13, 2008) - Kinbauri Gold Corp. ("Kinbauri") (TSX VENTURE:KNB)(FRANKFURT:3KG.DE) is pleased to announce that engineering and mine planning has been initiated at El Valle in order that a feasibility study can be completed by November of this year. Three firms have submitted proposals to complete the feasibility study; a final choice will be announced shortly.

Other Contractual Developments:

- McIntosh Engineering of North Bay, Ontario has been awarded a contract for underground mine design and costing. McIntosh Engineering has over 200 employees and is considered a world leader in underground mine design and related technical services. It provides services to mining companies in developing underground mining operations, including: project analyses, scoping studies, pre-feasibility and detailed feasibility studies, detailed engineering planning, procurement assistance, construction management and commissioning.

Golder and Associates ("Golder") of Toronto, Ontario has been awarded a contract to complete rock mechanics and hydrology studies required for proper mine planning and development. Golder specializes in engineering and environmental services. It employs over 6,000 people in offices located throughout the world. Golder offers a comprehensive service for the management of groundwater and surface water on mining projects. Mr. Cesare Castiglia, a Golder geotechnical engineer, will be completing the rock mechanics study. Dr. Martin Preene, a Golder specialist in mine hydrology (21 years of experience) will be completing the hydrology study.

- COREM Laboratories of Quebec City, Quebec is being engaged to undertake metallurgical test work. COREM is a non-profit organization supported by various mining companies and the government of Quebec; its focus is the processing and transformation of mineral substances. COREM laboratories have state-of-the art equipment to carry out specialized or routine analyses along with metallurgical studies. COREM is also an active member of the ISO/TC/102 committees on chemical analyses and pyro-metallurgical characterization. It is accredited by the Standards Council of Canada (SCC) via the Standardization Office of Quebec (BNQ) according to ISO standard 17025.

- RWJ Mining Consulting of Dubuisson, Quebec is conducting an on-going review of the El Valle mill to determine maintenance, metallurgical tests and up-grades required for optimal production rates upon its restart. Mr. Roger Jolicoeur, RWJ's principal, has participated in mill feasibility studies, operational costing, audits, rehabilitations, replacements and commissioning, both as a consultant and employee of various mining companies (Lyon Lake Mines, Agnico-Eagle, BHP Billiton, Westdome Gold Mining, Abcourt Mines, International Taurus Resources and Osisko Exploration amongst others).

- Kinbauri has engaged Mr. Serge Nantel, an independent professional mining engineer with over 34 years experience with various mining companies (Soquem, Inmet Mining, Minnova, Noranda, Asbestos Corporation) to supervise the above studies and integrate them into the feasibility study. Mr. Nantel has supervised and managed various engineering and construction tasks related to underground and open pit operations. Notably, he was construction manager and project coordinator with Inmet Mining, for the construction of the Troilus project, a $200M mining complex .

Recent Developments at El Valle/Carles

On January 17th Kinbauri filed a N.I. 43-101 compliant technical report. This report delineated Kinbauri's resources as of November 7th 2007 as:

- Total Measured + Indicated: 725,200 oz Au and 87,100,000 lbs. Cu (4,159,000 tonnes at 5.4 g Au/t and approximately 0.97% Cu(1)).

- Total Inferred: 1,042,000 oz Au and 50,000,000 lbs. Cu (5,357,000t at 6.1g Au/t and approximately 0.56% Cu(2)).

(1) 0.97% Cu for 4,054,000 tonnes resource, copper resource and grade
is not estimated for 105,000 tonnes resource.
(2) 0.56% Cu for 4,074,000 tonnes resource, copper resource and grade
is not estimated for 1,283,000 tonnes resource.
(3) With the exception of 78,000oz. Au (898,000 tonnes @2.7g/Au/t),
all resources are located at El Valle and Carles.

During the course of its recent underground exploration works at the El Valle mine, Kinbauri has completed 395 metres of drifting to facilitate infill drilling required for the feasibility study and further exploration drilling. The 23,000m infill drilling program was started in late 2007 and over 5,000 metres have been drilled to date (See press releases of December 13, 2007; January 29, 2008; February 14 and 27, 2008; and March 28, 2008 for the positive results achieved). The infill drilling will be completed no later than August of this year. The exploration drilling, which is targeted to add a further 300,000 plus ounces of gold within the southward expansion of the Northwestern Area of the Black Skarn (see press release of March 7, 2008) will be completed by year end.

As indicated above, Kinbauri has initiated engineering and mining studies in order that a feasibility study can be completed by November, 2008. This will allow Kinbauri to pursue non-dilutive financing to complete its pre-production development during 2009 and early 2010.

Kinbauri is a TSXV - Tier 1 Mineral Exploration Company focused on the development of mineral properties, primarily precious metal prospects in northwestern Spain, Nevada and Canada. Its immediate focus is to expand and upgrade resources to reserves at the El Valle property in Asturias, Spain in order to start operations at the mine and existing mill complex there in early 2010. It currently has 43,608,320 common shares issued and outstanding.


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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