Kaminak Gold Corporation

Kaminak Gold Corporation

July 07, 2009 08:30 ET

Kaminak Commences Trenching Program on "White District" Gold Properties

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2009) - Kaminak Gold Corporation (TSX VENTURE:KAM) today announced it has commenced an initial field program consisting of mechanized trenching, soil sampling and ground magnetic surveys on the company's Coffee, Cream and Kirkman properties located in the newly recognized "White District" in west-central Yukon Territory.

The primary objective of the trenching program will be to strip overburden and expose bedrock over high priority gold-in-soil anomalies on the Coffee property. Over 5,500 metres of trenching are planned and these new exposures will be systematically mapped with approximately 1,000 rock chip samples expected to be taken and sent for geochemical analyses. In addition, a total 5,000 soil samples are planned on the Coffee property and these will be taken over new potential gold targets. The Kirkman and Cream properties will undergo geological mapping, minor trenching and approximately 1,800 total soil samples.

The total cost of this initial program is $430,000 and it is expected to be completed by the end of July. Subsequent follow-up work is planned for August and September and will be contingent on chip sampling results.

Prospecting and geochemical sampling work to date on Kaminak's properties have identified coincident soil anomalies 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 Coffee soil anomaly is the largest and most intense new gold-in-soil anomaly in the White gold district. Maps and images from these new Kaminak properties are now available on the Company's website at www.kaminak.com.

Kaminak Closes Non-Brokered $1.3 Million Private Placement

Kaminak today announced the closing of a non-brokered private placement approved by the TSX Venture Exchange totalling $1,299,290 CDN. At closing, Kaminak issued 2,887,311 units through two separate tranches at a price of $0.45 per unit, to raise proceeds of $1,299,290. The warrants associated with the financing expire June 29th, 2011 and July 7th, 2011 and are subject to an acceleration clause, whereby, if the weighted average trading price of Kaminak's shares on the Exchange is at a price greater than $0.10 above the strike price of a whole common share purchase warrant for a period of 10 consecutive trading days, the Company will have the right to accelerate the expiry date of the warrants. Kaminak will give written notice to the holders of the warrants that the warrants will expire within 30 days of the date notice provided by the Company to the warrant holders. Such notice by the Company to the holders of the warrants may not be given until four months and one day after the Closing.

All of the shares and any shares issued upon exercise of the units and the units comprising the compensation option are subject to a hold period and may not be traded in Canada until October 26th, 2009 or November 8th, 2009, except as permitted by applicable Canadian securities laws and the TSX Venture Exchange.

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 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.

Post-closing, Kaminak has working capital in excess of $6,700,000 including over $5,360,000 in cash. The company has a low corporate burn-rate of under $60,000 per month and no debt. 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

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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