Kaminak Gold Corporation

Kaminak Gold Corporation

March 20, 2008 08:30 ET

Kaminak Completes Warrant Exercise and Provides Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 20, 2008) - Kaminak Gold Corporation (TSX VENTURE:KAM) today announced a total of CDN $3,173,380 has been added to the Company treasury through the exercise of 5,187,559 warrants. Kaminak now has approximately CDN $5.0 million in cash and has no further warrants outstanding. The warrants were issued in connection with private placements completed in March 2006.

"Eliminating warrant overhang represents a significant milestone in our corporate growth," stated Rob Carpenter, President and CEO of Kaminak. "We continue to believe the best way to create shareholder value is to maintain a strong share structure. Our ability to create in-house exploration opportunities, combined with our low corporate burn rate, provides long term growth opportunities for the Kaminak shareholder."

Corporate Update

Kaminak is currently focused on completing the spin-out of its uranium assets into the newly-created Kivalliq Energy Corp. Pending regulatory and shareholder approval, Kaminak intends to distribute securities of Kivalliq to its shareholders (see Kaminak news release dated February 21st, 2008). The primary Kivalliq asset will be the historic Lac Cinquante uranium deposit, which is reported to contain 11.6 million pounds of U3O8 at an average grade of 1.03% U3O8 (non National Instrument 43-101 compliant)(ii).

Kaminak will continue to employ the prospect generator business model and the Company's technical team will have several active field programs in 2008. The focus will be on "market-friendly" commodities across Canada. Additionally, the Company currently has a total of nine properties under joint venture in Quebec, British Columbia and Nunavut. Kaminak has also regained 100% control of the Nizi Creek and Washburn properties which were subject to option agreements with Romios Gold Resources Inc. and Mega Uranium Ltd., respectively.

(ii) The quoted disclosure for the Lac Cinquante uranium deposit was disclosed by Aberford Resources Ltd. in its annual report from 1982. No additional information was available in the annual report. The deposit is historical and should not be relied upon since it is not compliant to standards set out in National Instrument 43-101. However, it is relevant because: it is indicative of a mineralized zone worthy of follow up exploration as it is based on drilling exploration and development carried out by what is believed to be knowledgeable explorers in accordance with acceptable industry practices at the time of the estimate. A Qualified Person has not classified historical estimates as current mineral resources/reserves, and Kaminak is not treating them as current mineral resources/reserves since work to date has not verified the historical estimates. Kaminak has not done any work to confirm these estimates but will be planning exploration programs aimed at evaluating the economic potential of the deposit and environs. It is uncertain if further exploration will result in the deposit being delineated as a mineral resource.

Kaminak's disclosure of a technical or scientific nature in this release has been prepared under the supervision of Rob Carpenter, Ph. D., P.Geo., Kaminak's President and CEO, who is a Qualified Person under the definition of National Instrument 43-101.

About Kaminak

Kaminak Gold Corporation is a prospect generator employing a joint venture strategy that maximizes opportunities for discovery while attempting to minimize exploration risk to Kaminak. A critical component of Kaminak's business model is working with strong project partners to advance Kaminak's exploration projects. Covering several million acres, Kaminak holds one of the largest land positions in Canada devoted to metallic mineral exploration. Kaminak's projects offer world-class exploration potential and present exposure to strategic commodities including, gold, uranium and nickel.

On behalf of the Board of Directors

Rob Carpenter, Ph. D., P. Geo., President and CEO

Kaminak Gold Corporation

Certain disclosures in this release, including management's assessment of Kaminak's plans and projects and intentions with respect to a proposed spin-off, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kaminak's operation 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 and the receipts of all necessary approvals and consents for the proposed spin-off. 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.

Contact Information

  • Kaminak Gold Corporation
    Rob Carpenter, Ph. D., P. Geo.
    President and CEO
    (604) 646-4534
    Website: www.kaminak.com