Kaminak Gold Corporation

Kaminak Gold Corporation

May 04, 2009 12:25 ET

Kaminak Acquires Three Gold Properties in the Newly Recognized White Gold District, Yukon Territory

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 4, 2009) - Kaminak Gold Corporation (TSX VENTURE:KAM) is pleased to announce it has acquired an option to acquire a 100% interest in three highly prospective gold properties located approximately 120 km south of Dawson City, Yukon. The Coffee, Cream and Kirkman properties total 7,680 hectares and are located in the newly recognized "White" gold district in the west-central Yukon.

The primary target on all three properties is a near surface, bulk tonnage gold deposit analogous to Underworld Resources Inc.'s newly discovered White Project, which is located only 8 km from Kaminak's Kirkman property and 27 km from Kaminak's Coffee and Cream properties. In 2008, Underworld drilled 18.1m grading 4.35 g/t Au and 50.7m grading 3.1 g/t Au revealing a new mineralized gold system (see Underworld news release dated October 15th, 2008).

Prospecting and geochemical sampling work to date on Kaminak's new properties have identified a coincident soil anomaly consisting of elevated gold (Au), arsenic (As) and antimony (Sb) similar to that observed on Underworld's White property where subsequent trenching and drilling led to the discovery of bedrock mineralization by Underworld. On Kaminak's Coffee property, over 1,250 soil samples have been collected and results have outlined a core anomaly measuring 1.5 km by 2 km which is characterized by a strong geochemical signature defined by Au (highest threshold from 80 to 839 ppb), As (100 to 1,758 ppm) and Sb (8 to 117 ppm). Two smaller grids were also established along the regional strike situated 2.5 kilometres east and 4.5 kilometres west of the core grid. Both grids outlined anomalous gold values with the highest threshold values on the western grid ranging from 50 to 643 ppb Au, and values on the eastern grid ranging from 50 to 148 ppb Au. The three separate grids are demonstrating anomalous gold values over a linear length of 10 km. These results indicate that the size and intensity of the new Coffee soil anomaly is the largest new gold-in-soil anomaly in the White gold district. Compelling soil geochemical anomalies also occur on the Cream and Kirkman properties. Maps and images from these new Kaminak properties are now available on the Company's website at www.kaminak.com.

Kaminak's management believes these new properties represent an excellent discovery-stage opportunity and summer 2009 exploration plans will include extensive trenching of existing soil anomalies, additional soil sampling, ground magnetic surveys and geological mapping. The goal of this work is to identify and prioritize diamond drill targets.

The Agreement

Kaminak can earn a 100% interest in the properties from Shawn Ryan of Dawson City, Yukon, subject to a 2% NSR in favour of the vendor. To earn its interest Kaminak will commit to an exploration budget of $250,000 for 2009 and issue Mr. Ryan an initial payment of 250,000 common shares of Kaminak and $75,000 cash. However, Kaminak is eligible for prospecting grants from the Yukon government and has submitted applications for refunds totalling $101,000.

Upon receiving final results from the 2009 exploration season, Kaminak may at its discretion elect to complete its acquisition of one or all of the properties by completing a corporate plan of arrangement (or spin-out) thereby creating a new company focussed on developing gold resources in the Yukon (Newco) Shares of "Newco" would then be distributed to Kaminak shareholders on a basis yet to be determined.

The creation of "Newco" would require TSX Venture Exchange approval as well as Court and shareholder approval. Newco would assume the option agreement from Kaminak and in order to complete the option Newco will be required to complete an additional $1,550,000 in exploration expenditures, issue 1,500,000 shares and make cash payments totalling $325,000 to Mr. Ryan over three years. Mr. Ryan would retain a 2% NSR subject at anytime to a 1% buy-back for $2 million with annual advance royalty payments of $20,000 commencing December 31st, 2013. A finder's fee of 100,000 Kaminak shares will be paid to an arm's length party.

Kaminak's disclosure of a technical or scientific nature in this press release has been reviewed and approved by Dr. Rob Carpenter, Ph.D., P.Geo., Kaminak's President and CEO, who serves as a Qualified Person under the definition of National Instrument 43-101. The soil geochemical data was provided by Mr. Ryan and although it was not verified by Kaminak, it is thought to be reliable. The geochemical analyses were completed at a recognized laboratory. The Coffee, Cream and Kirkman properties represent early stage exploration properties and do not contain any mineral resources as defined by National Instrument 43-101.

About Kaminak

Kaminak Gold Corporation is an opportunity focused prospect generator whose technical strength and entrepreneurial drive is complemented by a proven, successful business model designed to create shareholder value. The company's business model employs a joint venture strategy that exposes Kaminak shareholders to multiple opportunities for discovery. Kaminak projects offer world-class exploration potential and present exposure to strategic commodities with an emphasis on gold.

Kaminak currently has working capital in excess of $5,300,000 including over $4,500,000 in cash. The company has a low corporate burn-rate of under $60,000 per month and no debt. Moreover, Kaminak has not raised money through equity markets in three years and has no intention of doing any financings in the near future. These factors combine to put Kaminak in a position of strength in the current market. Management will continue to seek out market friendly opportunities which are value-driven with high-potential for discovery.

On behalf of the Board of Directors of Kaminak

Rob Carpenter, Ph.D., P.Geo., President and CEO, Kaminak Gold Corporation

Certain disclosures in this release, including management's assessment of plans and projects and intentions with respect to listings of securities, use of proceeds and future exploration programs, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kaminak's operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. Kaminak expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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