Kinbauri Gold Corp.
TSX VENTURE : KNB

Kinbauri Gold Corp.

July 19, 2007 08:30 ET

First Drill Program at Kinbauri Gold's El Valle Project in Spain Intersects 11.1g/t Gold and 2.27 % Copper Over 25.6 Metres

OTTAWA, ONTARIO--(Marketwire - July 19, 2007) - Kinbauri Gold Corp. (TSX VENTURE:KNB) ("Kinbauri") is pleased to release the first set of assay results from its drill program at El Valle. The objective of the on-going 7,000m drill program is to define resources to support six years of production, assuming reasonable conversion to reserves. Area 107 and Black Skarn North are being targeted for their continuity of gold and copper mineralization and proximity to existing mining infrastructure. Results from the first ten holes, drilled from the existing mine workings, are summarized in the table below.



HOLE(1) From To Thickness(2) Au Ag Cu Zone(3)
(m) (m) (m) (g/t) (g/t) (%) Section
----------------------------------------------------------------------
----------------------------------------------------------------------
07KV1001 70.30 79.30 9.00 4.5 6.4 0.31 A107
including 73.20 79.30 6.10 5.6 8.1 0.39 10
07KV1001 80.80 85.30 4.50 2.1 9.3 0.85
----------------------------------------------------------------------
07KV1002 167.00 173.40 6.40 6.40 27.6 0.99 A107
Including 169.35 173.40 4.05 8.90 36.6 0.91 9
----------------------------------------------------------------------
07KV1003 51.60 53.70 2.10 7.60 54.5 2.17 NBS & A107
07KV1003 64.50 69.00 4.50 2.20 6.7 0.69 10
----------------------------------------------------------------------
07KV1004 47.80 52.25 4.45 2.80 11.2 0.57 NBS
07KV1004 66.20 69.60 3.40 2.30 13.3 1.50 6
07KV1004 105.20 109.40 4.20 7.30 9.1 1.07
----------------------------------------------------------------------
07KV1005 45.30 50.30 5.00 2.10 14.6 0.79 NBS
including 45.30 46.50 1.20 2.37 20.0 1.58 7
07KV1005 78.80 101.20 22.40 1.50 9.7 0.70
including 89.00 90.70 1.70 3.35 22 1.07
----------------------------------------------------------------------
07KV1006 83.25 89.15 5.90 3.60 5.0 0.19 NBS & A107
07KV1006 213.95 217.40 3.45 3.70 24.7 1.03 12
including 216.25 217.40 1.15 6.13 36.0 1.35
----------------------------------------------------------------------
07KV1007 151.10 152.90 1.80 4.33 7.0 1.16 A107
07KV1007 157.70 166.00 8.30 5.90 102.4 7.68 8
----------------------------------------------------------------------
07KV1008 93.85 94.90 1.05 6.23 41.0 1.35 A107
07KV1008 124.70 128.30 3.60 12.3 5.5 0.36 4
----------------------------------------------------------------------
07KV1009 65.1 137.1 72.00 5.10 22.9 1.40 A107
including 108.7 134.25 25.55 11.10 47 2.27 11
----------------------------------------------------------------------
07KV1010 150.00 154.20 4.20 6.9 18.1 0.98 A107
Including 153.00 154.20 1.20 12.7 7.0 0.46 3
----------------------------------------------------------------------

(1) See Schedule A for relative location: (2) True thicknesses have not
been calculated, pending confirmation of geological and mineralization
geometry: (3) A107 - Area 107; NBS - Black Skarn North.


These results extend the mineralization at Area 107 (beyond its defined resource area as of March 21, 2007) a minimum of 50m to the southeast, 150m to the west and 100m at depth. As noted in sections 10 and 12, high copper (sulphide) and gold values coincide with the apparent intersection of the Area 107 epithermal structure and the Black Skarn to the southeast. The results also suggest that Black Skarn North may be continuous with the Monica Zone some 350 metres to the south. As of March 21, 2007 Ore Reserves Engineering ("ORE") estimated (i) indicated resources of 12,000 ounces gold (38,000 tonnes at 9.8g Au/t) and inferred resources of 342,000 ounces gold (913,000 tonnes at 11.6g Au/t) for Area 107; (ii) inferred resources of 73,000 ounces gold and 5,000 tonnes copper (445,000 tonnes at 5.1g Au/t and 1% Cu) for Black Skarn North; and (iii) measured and indicated resources of 203,000 ounces gold and 19,000, tonnes copper (1,426,000 tonnes at 4.4g Au/t and 1.3% Cu) and inferred resources of 17,000 ounces gold and 2,000 tonnes copper (126,000 tonnes at 4.2g Au/t and 1.6% Cu) for the Monica Zone.

The underground drill program is on-going and should be completed in September. It is being supervised by Mr. Santiago Gonzalez, Kinbauri Espana's senior geologist with quality control being provided by Dr. C. F. Gleeson, P. Eng., Kinbauri's Vice-President of Exploration: both qualified persons as defined by N.I. 43-101.

Kinbauri has established an Analytical Quality Assurance Program to control and assure the analytical quality of assays. This program includes the systematic addition of a blank sample, a pulp duplicate and a standard to each batch of 20 samples. The samples are obtained from HQ core sawed in half, crushed, pulverized, homogenized and split in Kinbauri's on site facility at El Valle. Samples are sent to ITMA's laboratory in Oviedo, Spain for analyses. In addition 5% of the samples are sent to ALS Chemex's laboratory in Canada for check analyses. Gold assays are carried out on 30 gram splits using fire assay procedures with an atomic absorption finish.

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

About Kinbauri

Kinbauri is a 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 with a view to re-starting operations at the mine and mill complex there, and to establish resources to support a mine and mill at Corcoesto in Galicia, Spain where it has an option to earn a 65 percent interest. It currently has 43,372,320 common shares issued and outstanding; 67,056,236, fully diluted. Effective July 16th, 2007, Kinbauri's classification as a mining company was upgraded to Tier 1 by the TSXV.

About the Rio Narcea Gold Belt

This belt, which has been subject to multiple phases of mineralization common to most major mining camps, has present measured and indicated resources of 477,000 ounces gold and 26,000 tonnes copper (2,594,000 tonnes at 5.7g Au/t and 2,343,000 tonnes at 1.13% Cu) and inferred resources of 845,000 ounces gold and 11,600 tonnes copper (3,159,000 tonnes at 8.3g Au/t and 1,607,000 tonnes at 0.84% Cu), as estimated by ORE. Kinbauri presently holds permits totaling 3,000 hc and investigation permits totaling 592 ha, covering the four main gold deposits at El Valle, Carles, La Brueva and Godan/Ortosa. All of the above-estimated resources are attributed to the El Valle and Carles deposits. With the exception of a surface drilling program targeting a near-surface extension of open-pittable resources at Carles and a Mo-Au target at Godan, Kinbauri's present plans are to concentrate drilling at El Valle in order to define resources and reserves towards mine production re-start. To find out more about the Rio Narcea Gold Belt and El Valle, please visit Kinbauri's web-site at www.kinbauri-gold.com.

THIS PRESS RELEASE WAS PREPARED BY KINBAURI GOLD CORP. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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.

A map is available at the following address: http://www.ccnmatthews.com/docs/kinb0719.pdf

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