Kilgore Minerals Ltd.
TSX VENTURE : KAU

Kilgore Minerals Ltd.

August 31, 2005 16:46 ET

Kilgore Minerals Announces $2,000,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 31, 2005) -

NOT FOR US DISTRIBUTION or DISTRIBUTION THROUGH US NEWS WIRE SERVICES

Kilgore Minerals Ltd. (TSX VENTURE:KAU)(shares issued: 11,918,395) is pleased to announce that it has engaged PowerOne Capital Markets Limited on behalf of a syndicate of dealers including Haywood Securities Inc. and Bolder Investment Partners Ltd. to complete a private placement of units to raise gross proceeds of $1,500,000, with an option exercisable by the agents at any time prior to closing to increase the size of the offering by up to $500,000. Each unit will be issued at a price of $0.42 and will consist of one common share and one-half of one share purchase warrant. Each whole share purchase warrant will entitle the holder to purchase one common share at a price of $0.50 for a period of two years from the closing date. If Kilgore's common shares close at or above $1.00 per share on days where at least 1,000 shares trade for 20 consecutive days commencing four months after closing, the expiry date of the warrants will accelerate to the date that is 30 days after the day a press release is widely disseminated by Kilgore announcing the accelerated expiry date.

The agents will be paid a cash commission of 8% of the gross proceeds of the offering and will be issued a number of compensation warrants that is equal to 10% of the total number of units sold under the offering. Each compensation warrant will entitle the holder to acquire one unit at a price of $0.42 for a period of two years from the closing date.

Completion of the financing is subject to TSX Venture Exchange approval.

Kilgore Minerals is a junior exploration company engaged in the acquisition, exploration and development of natural resource properties. The company holds interests in ten uranium properties and three gold properties, all of which are located in the United States.

ON BEHALF OF THE BOARD

Norman Burmeister, President & CEO


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

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