Kenrich-Eskay Mining Corporation

Kenrich-Eskay Mining Corporation

September 04, 2007 12:42 ET

Kenrich-Eskay Mining Corporation: Update on 2007 Drilling Program for Corey and Coastal Copper Projects

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 4, 2007) - KENRICH-ESKAY MINING CORPORATION (the "Company") (TSX VENTURE:KRE)(FRANKFURT - BERLIN- 878 985) is pleased to provide an update on the 2007 drilling programs at its Coastal Copper and Corey projects in the Stewart region of northwestern British Columbia.

Drilling Completed at Coastal Copper Property

The 2007 diamond drilling program at the Coastal Copper Project near Anyox, B.C. has been completed. The goal of this program was to further test the possible extensions of the Double Ed deposit to the north and south. The Company recently announced a mineral resource for the Double Ed deposit of 1.85 million tonnes grading 1.6% copper and 1.0% zinc (see news release of April 18).

To date in the Coastal Copper 2007 program, 6 new diamond drill holes have been completed (DE07-01 to -06) plus a re-entry and deepening of DE06-20 (from the 2006 drill program), for a total of 2493 metres of diamond drilling.

Of the 6 new diamond drill holes completed in the 2007 program three intersected significant mineralization. Assay results are presented in the table below.

Holes 1 and 2 targeted a wide zone of stringer to semi-massive sulphide mineralization hosted by chlorite-altered mafic volcanic rocks that had been partially tested in 2006. The style and depth of mineralization intersected in hole 2 is consistent with it being a feeder zone to main Double Ed deposit, but it still carries significant copper grades over a wide interval. Holes 4 and 5 were designed to test an AeroTEM anomaly that was detected in the 2006 airborne survey. The source of the anomaly was not confirmed conclusively. In the offseason, geological interpretations suggested that DE06-20 from the 2006 program was not drilled deep enough. As such this hole was re-entered and extended to a great depth and it intersected a downdip extension of the Double Ed mineralization. Hole 6 was designed to extend the Double Ed Zone further to the south and it intersected an additional 8.0 metres (true width) of massive sulphides grading 1.1% Cu. The Double Ed zone remains open to the north, south and downdip.

Hole No. From To Int. True width Cu Zn Ag
(m) (m) (m) (m) (%) (%) (g/t)

DE07-01 No significant results

DE07-02 348.0 368.0 20.0 unknown 1.1 0.1 1.5

DE07-03 237.9 259.1 21.2 Strong stringer pyrite and pyrrhotite,
but no significant base metal contents

DE07-04 No significant results

DE07-05 No significant results

DE07-06 427.8 438.7 10.9 8.0 1.1 0.2 8.5

incl. 427.8 430.4 2.6 1.9 2.1 0.2 12.7

and 434.6 437.6 3.0 2.2 2.1 0.5 18.7

DE06-20(i) 311.7 315.7 4.0 unknown 1.2 0.04 2.6

and 321.7 332.7 11.0 unknown 1.0 0.2 2.3

(i)this hole was an extension of hole 20 from the 2006 program

The drill has now been demobed from the Coastal Copper property and the field program has been completed for 2007.

Diamond Drilling Continues at Corey Property

At the Corey property a total of over 5500 metres of drilling has been completed from 17 drillholes. Two drillholes (647 metres) were completed at the Battlement area, 8 holes (1575 metres) were drilled at the Cumberland Zone, 4 holes (1847 metres) were drilled at the Smitty Showing and 2 holes (1227 metres) were drilled in the South Unuk area. Also, hole 64 from the 2006 program was extended an additional 250 metres to test the C10 Zone. Results are pending.

Drilling at Battlement is targeting an Eskay-equivalent package of rhyolite and geochemically anomalous mudstones. Drilling at the Cumberland has targeted potential extensions of the high grade mineralization intersected in the 2005 drill program. At the Smitty and South Unuk areas, deeper drilling is tracking the highly anomalous Salmon River Formation mudstones under Mount Madge to test for a more proximal source of metal and sulphide enrichments in these rocks.

The first two batches of analytical results have only recently been received and are currently being collated and interpreted by the Company's geologists

Upcoming drilling will target the Red Lightning Showing, a precious metal-enriched surface exposure of sulphide mineralization hosted by altered mafic volcanic rocks that was discovered during prospecting in the late-2006 program. This showing is located due east across Mandy Valley from the C10 Zone, and southeast of the HSOV massive sulphide showing. Assay results from selected surface grab samples are presented in the table below:

Cu Zn Ag Au
Sample (%) (%) (g/t) (g/t)

313073 0.43 0.12 0.02 5.1

313074 0.29 0.10 0.02 3.9

313089 0.50 0.17 3.23 6.9

313099 0.11 0.08 0.70 4.1

313100 0.14 0.13 0.08 4.6

The information contained in this document has been reviewed by Sean McKinley, M.Sc., P. Geo., a Qualified Person as defined by National Instrument 43-101.

The Company's cash position is approximately $4.8 million and has sufficient funding to complete the current year work program as well as adequate funding to carry on corporate operating for the 2008 year. The company is pleased to announce that it has arranged a "non-brokered" private placement (the "Offering") for up to 6,000,000 units to an aggregate of CDN$3,600,000. The Offering will consist of flow-through Units. Existing shareholders and financiers who participated in the companies previous Private Placements will be given first priority to participate in this financing.

The FT Units will be sold at a deemed price of $0.60 cents per unit and will consist of one flow-through common share and one flow-through warrant, where one whole warrant will be required to purchase an additional flow-through common share for one year from closing at a price of $0.75 cents. The Company may pay commissions to qualified entities at up to the maximum allowed by the policies of the TSX Venture Exchange in relation to the Non-Brokered Offering.

The Company intends to use the gross proceeds from the flow-through portion of the Offering for the exploration and development on its British Columbia properties to incur expenditures which qualify as Canadian exploration expense for the purposes of the Income Tax Act (Canada). The Company intends to renounce such expenses to the flow-through subscribers with an effective date no later than December 31, 2008. This private placement is subject to TSX Venture Exchange approval.

The company has also served 30 day notice to terminate the Investor Relation contract with Brisco Capital Partners Corp. of Calgary which is effect August 21, 2007.

On behalf of the Board of Directors of Kenrich-Eskay Mining Corporation.

Wally E Boguski, President, CEO, Director

This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the corporations control which may cause actual results, performance or achievements of the corporation's to be materially different from the results, performance or expectation implied by these forward looking statements.

"TSX Venture Exchange" does not accept responsibility for the adequacy or accuracy of this news release.

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