Kilo Goldmines Ltd.
TSX VENTURE : KGL

Kilo Goldmines Ltd.

August 26, 2009 09:36 ET

Kilo Announces Cdn$10.0 million Proposed Private Placement

TORONTO, ONTARIO--(Marketwire - Aug. 26, 2009) -

THIS PRESS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Kilo Goldmines Ltd. (TSX VENTURE:KGL) ("Kilo" or the "Company") announced today that it has engaged Haywood Securities Inc. (the "Agent") to act as lead agent in connection with a private placement offering, to be completed on a marketed best efforts agency basis, to raise gross proceeds of up to Cdn$10.0 million from the sale of up to 22,250,000 units ("Units") priced at C$0.45 per Unit. Each Unit will consist of one common share and one one-half of one common share purchase warrant. Each whole common share purchase warrant shall be exercisable to acquire one common share in the capital of the Company at a price of C$0.60 for a period of 24 months from the closing of the private placement. All securities issued in the private placement will be subject to a 4-month hold period in Canada.

The offering is subject to the usual conditions including, but not limited to, the receipt of all necessary corporate and regulatory approvals, including the approval of the TSX Venture Exchange.

Net proceeds of the offering will be used to fund further exploration of the Company's properties, and for working capital and general corporate purposes.

The private placement is expected to be completed on or about September 22, 2009

The Agent will receive a cash commission equal to 7% of the gross proceeds raised in this private placement and compensation options entitling the Agent to purchase such number of Units as is equal to 7.0% of the aggregate number of Units sold pursuant to the private placement. Each compensation option will entitle the agent to purchase one Unit at an exercise price equal to the issue price of the Units for a period of 12 months following the closing date.

The securities being offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States in the absence of registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to purchase securities in the United States.

About the Kilo-Moto Gold Belt

Kilo has over 14,000 square kilometers of claimed property mainly (95% owned) in the Orientale province of the (DRC). The Archaean Congo Craton has two major gold belts; the Kilo-Moto gold belt in Oriental province in the northeast and the Twangiza-Namoya gold belt in Kivu province, in the east of the country. Recent gold exploration has also focused on Katanga province in the southeast. The Kilo-Moto granite-greenstone belt represents a significant opportunity as it is the last large greenstone belt in the world to be looked at through the lens of modern exploration techniques. Kilo also has significant iron ore interests and recently finalized a deal whereby Rio Tinto was granted an option to earn into a joint exploration program. Rio Tinto has made important procurements in establishing infrastructure in preparation for an increased exploration effort.

About Kilo Goldmines Ltd.

Kilo is a Canadian-based exploration company focused on gold exploration in North Kivu and Oriental Provinces of the DRC. The company is focused on adding shareholder value through exploration success. Kilo also supports local social programs and operates in a manner that respects the environment.

This news release may contain forward looking statements concerning future operations of Kilo Goldmines Ltd. All forward looking statements concerning the Company's future plans and operations, including management's assessment of the Company's project expectations or beliefs may be subject to certain assumptions, risks and uncertainties beyond the Company's control. Investors are cautioned that any such statements are not guarantees of future performance and that actual performance and exploration and financial results may differ materially from any estimates or projections.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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