Kensington Resources Ltd.

Kensington Resources Ltd.

March 30, 2005 09:00 ET

Kensington Resources Announces $35 Million Private Placement Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: KENSINGTON RESOURCES LTD.

TSX VENTURE SYMBOL: KRT

MARCH 30, 2005 - 09:00 ET

Kensington Resources Announces $35 Million Private
Placement Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 30, 2005) - NOT FOR
DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS

Kensington Resources Ltd. (the "Company") announces that it has entered
into an agreement with Loewen, Ondaatje, McCutcheon Limited to act as
lead agent in a syndicate to market a private placement financing of up
to CDN $35 million on a commercially reasonable best efforts basis.

CDN $5 million of the offering will consist of flow-through common
shares and CDN $30 million of the offering will consist of non
flow-through units. Each non flow-through unit shall consist of one non
flow-through common share and one half of one share purchase warrant.
Each whole warrant shall entitle the holder thereof to purchase one
additional non flow-through common share for a period of twelve months
from closing. Pricing will be determined following the marketing of the
offering. The gross proceeds of the offering of the flow-through shares
will be used by the Company to incur exploration expenses on the Fort a
la Corne Project that qualify as "Canadian exploration expenses" under
the Income Tax Act (Canada). The proceeds of the offering of the units
will be used for exploration programs on the Fort a la Corne Project and
for general corporate purposes. The closing of the offering, currently
expected for April 29, 2005, is subject to certain conditions, including
completion of satisfactory due diligence by the Agent, and regulatory
approval.

The offered securities will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") and may
not be offered or sold within the United States or to or for the account
or benefit of U.S. persons, except in certain transactions exempt from
the registration requirements of the U.S. Securities Act. This press
release does not constitute an offer to sell, or the solicitation of an
offer to buy, securities of the Company in the United States.

Kensington Resources Ltd. is an exploration and mine development company
currently focused on the high potential Fort a la Corne Diamond Project
in Saskatchewan. The management team includes strong technical expertise
and is committed to reaching a diamond producer status for the
realization of shareholder value. The Fort a la Corne Diamond Project is
a joint venture among Kensington Resources Ltd. (42.245%), De Beers
Canada Inc. (42.245%), Cameco Corporation (5.51%) and UEM Inc. (carried
10%). After fifteen years of exploration at Fort a la Corne, the joint
venture partners are now entering into an accelerated results-driven
advanced exploration and evaluation phase targeted on reaching a
pre-feasibility decision in 2008. The Fort a la Corne Diamond Project
includes 63 identified kimberlite bodies within the largest
diamondiferous kimberlite cluster in the world.

Robert A. McCallum, President & CEO

FORM 20-F FILE #0-24980

LISTED IN STANDARD & POOR'S

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