Kilgore Minerals Ltd.

Kilgore Minerals Ltd.

January 10, 2006 13:39 ET

Kilgore Minerals to Conduct Work Program on Flagship Gold Property

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 10, 2006) - Kilgore Minerals Ltd. (TSX VENTURE:KAU), (shares issued: 17,983,276) is pleased to announce a planned summer 2006 diamond drill program on its 100% owned flagship gold property (the "Kilgore Property") in southeast Idaho. A Plan of Operations filed with the United States Forest Service was approved in the spring of 2004. This permit is in the process of being amended to cover 2006 operations. Discussions have been initiated with drill contractors and formal drill contract bids will be solicited in the next few weeks.

The Kilgore Property was the subject of extensive exploration by major gold mining companies between 1983 and 1998. During that period more than $8 million was spent on the property and 197 diamond and reverse circulation holes with a total of 126,417 feet were completed. The currently known resource, as determined by a National Instrument 43-101 compliant technical report prepared by G. H. Rayner and Associates and Bruce H. Van Brunt, is 218,000 ounces gold indicated and 269,000 ounces gold inferred.

In 2004, the company carried out a six hole diamond drill program, five of which were sited to explore what Kilgore Minerals believes to be the core of the epithermal gold system at the Kilgore Property. This area, called the Dog Bone Ridge, is at least 6,000 feet long and 1,800 feet wide as determined by geochemistry, geophysics, geology and structure. The company's 2004 diamond drill program is the only drilling that has been completed on the Dog Bone Ridge target. A high-grade zone, called the "Elsa Zone", was intersected in the first hole on the Dog Bone Ridge target with a 10 foot section averaging 0.465 opt gold within a low-grade envelope of gold mineralization averaging 0.04 opt gold over 170 feet. This was a blind discovery at 410 feet of depth and 4,650 feet from the known resource area. The next four holes, none of which were offsets to the Elsa Zone discovery, all intersected weak to strongly anomalous gold mineralization over thick intersections in association with extreme alteration and strong realgar and stibnite mineralization, minerals which are characteristic of epithermal gold systems. The 2004 program confirmed the interpretation of the Dog Bone Ridge as the core of the exceptionally large hydrothermal system and proved the highly prospective nature of the target for high-grade vein type gold mineralization.

The summer 2006 drill program is expected to commence in July with the first holes designed to offset the Elsa Zone discovery. There are a number of Elsa "look-alike" definitive targets within the overall Dog Bone Ridge target area that will also be tested.

The Kilgore Property was not drilled in 2005. Management felt that shareholders interests were best served by instead quickly acting on attractive uranium opportunities. The company is now well financed to conduct its planned 2006 work programs for both its gold and uranium assets.


Norman Burmeister, President & CEO


Kilgore Minerals is 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.

WARNING: This news release contains forward-looking information. The reader is cautioned that assumptions used in the preparation of such information, although considered accurate at the time of preparation, may prove incorrect. The actual results achieved may vary materially from the information provided herein. Consequently, there is no representation by the company that actual results achieved will be the same as those forecast.

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

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