Kilgore Minerals Ltd.
TSX VENTURE : KAU

Kilgore Minerals Ltd.

June 27, 2005 19:00 ET

Kilgore Provides Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 27, 2005) - Kilgore Minerals Ltd. (TSX VENTURE:KAU) (Shares Issued: 11,918,395) reports that, further to its news release of April 21, 2005, the company has to date acquired 10 uranium properties in the western USA. All of the properties have been acquired by locating lode mineral claims.

Five of the recently acquired properties are located in southeastern Montana. The package consists of the Mindy Group (42 claims), the Acadia Group (34 claims), the Ella Group (44 claims), the Owl Group (20 claims), and the Tess Group (23 claims). The Powder River Basin, a prolific uranium producing geologic setting immediately to the south in Wyoming, extends into southeastern Montana where these claims were located. The area was intensely explored by up to 29 major mining and energy companies during the 1970's and into the early 1980's. Kerr McGee, one of the largest uranium producers during this era, was particularly active in the area and drilled hundreds of widespread reconnaissance holes. A number of uranium bearing roll front targets were developed and closed spaced drilling was carried out on some of them. The Mindy group covers a roll front which closed spaced drilling indicates is approximately 4.5 miles long. The sandstone hosted uranium mineralization is believed to occur in the Cretaceous Inyan Kara Group at a depth of about 1,700 feet. The roll front is defined by at least 226 holes drilled by Kerr McGee. The Acadia Group covers another Kerr McGee target, a close-spaced drill hole defined roll front that is approximately 2.5 miles long. At least 254 holes were drilled, mostly on 100 foot spacing fences at 500 foot intervals. It is believed that the mineralization occurs at approximately 1,600 feet. The Ella Group covers a roll front target identified first by Uranium Resources. The project was later worked on by Amoco and Exxon. Some 150 holes were drilled targeting mineralization at around 1,800 feet. The Owl and Tess Groups cover additional roll front targets with significant but fewer close-spaced drill holes than the aforementioned properties.

Three properties have been acquired in northeastern Wyoming. The New Group (48 claims) covers portions of an historic uranium district that was mined by Homestake Mining. Production, which dates back to the early 1950's, was by both surface and underground methods. Exploration drilling was carried by out by Homestake into the mid 1980's and over 3,000 holes were completed. In one area covered by the New Group claims, records show that over 250 holes were drilled within a 40 acre tract, or 6+ holes per acre. The Wood Group (72 claims) covers a similar situation that saw historic production and extensive exploratory drilling (several hundred holes) by Homestake and Pioneer Nuclear. Records show that approximately 115 holes were completed on one particularly intensely-drilled 160-acre tract covered by some of the Wood claims. The Oshoto Group (2 claims) is a small strategically located property in the middle of an ISL field tested by Bethlehem Steel in the 1970's.

Kilgore has acquired the Juniper project in Tuolumne County, California. This is the Niagra Group (91 claims) which covers a stream channel uranium deposit that is believed to be approximately 5.0 miles long. Uranium was produced from the eastern end of the deposit in the 1950's. Exploration was carried out initially by Utah Mining and Construction (later Utah International) and Pathfinder Mines (now Cogema). The deposit has been extensively drilled.

In Nevada, Kilgore has staked the CA group (46 claims) to cover the Mountain West uranium deposit. This is another stream channel deposit that was extensively explored by Utah Mining and Construction and Pathfinder Mines.

Kilgore has now acquired a total of 422 claims encompassing approximately 8,400 acres of highly prospective uranium lands in 10 areas. We are very pleased with our uranium package. The company believes that the outlook for uranium is excellent and the acquisition program is continuing.

In the months ahead the company will be concentrating its efforts on the location and acquisition of additional historic data associated with its portfolio of uranium properties. A number of additional areas believed to be highly prospective for the occurrence of uranium and with significant historical work have been identified. The company is working on the acquisition of these prospects.

The exploration drilling permit covering operations at the Kilgore Gold Project in Idaho is being maintained in anticipation of the company obtaining sufficient financing and an acceptable drill contract in the future. Offsetting the Elsa discovery in an appropriate manner will require a substantial program and it is unlikely that the program could be completed this year.

Norman W. Burmeister, P. Eng., is the qualified person with respect to the technical information contained in this news release. All of the technical information contained herein was compiled by parties other than Kilgore.

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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