Kaminak Gold Corporation

Kaminak Gold Corporation

October 14, 2009 08:30 ET

Kaminak Options Churchill Project Non-Diamond Rights to Shear Minerals Ltd.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 14, 2009) - Kaminak Gold Corporation (TSX VENTURE:KAM) today announced that the Company has signed an agreement whereby Shear Minerals Ltd. ("Shear") can acquire the non-diamond rights from Kaminak's Churchill Gold Project located in the Rankin Inlet area of Nunavut, Canada. Shear currently owns the diamond rights on the Churchill Property and this agreement will harmonize the mineral rights on the project.

Subject to regulatory approval, Kaminak has granted Shear the right to purchase a 100% interest in the non-diamond mineral rights of the Churchill property and related datasets in exchange for:

  1. Kaminak receiving 3,000,000 common shares of Shear, payable within 15 business days of approval of the transaction by the TSX Venture Exchange
  1. Kaminak will retain a 20% back-in-right of the non-diamond mineral rights of the Property exercisable anytime up to the completion of an independent bankable feasibility study completed in accordance with National Instrument 43-101. Kaminak will repay at cost, all non-diamond expenditures within 90 days of exercising the back-in right.
  1. Kaminak will receive annual summary reports on all non-diamond exploration work on the Property which will include a detailed yearly accounting summary.

"Harmonizing the diamond and non-diamond rights of the Churchill Project makes sense for all parties involved," stated Rob Carpenter, President and CEO of Kaminak. "The Kaminak shareholder has now gained exposure to the diamond potential of the Churchill Property through share ownership while retaining a non-diamond back-in-right."

About the Churchill Project

The non-diamond rights to the Churchill Project were originally acquired by Kaminak from Shear in 2005 by plan of arrangement. The Churchill property is underlain by a number of Archean greenstone belts which are favourable hosts for high grade gold and nickel deposits. The most recent non-diamond exploration work done on the property was in June 2006 when Kaminak conducted a shallow five hole diamond drill program consisting of 457 metres testing three geophysical and geochemical targets. This was the first ever drill program designed to evaluate the gold potential of Churchill property, and Kaminak intersected 7.06 g/t Au over a core length of 0.69m. No gold exploration work has been completed on the property since 2006.

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 has an extensive portfolio of discovery-stage projects that offer world-class exploration potential and present exposure to strategic commodities with an emphasis on gold.

Kaminak's financial discipline has enabled the company to acquire a healthy treasury, remain debt-free and maintain a very low corporate burn-rate. Well positioned to take advantage of the current market, Kaminak is actively engaged in seeking out market-friendly opportunities that 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

Kaminak is a member of the Discovery Group of companies. For more information on the group please visit www.discoveryexp.com.

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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