Kinbauri Gold Corp.

Kinbauri Gold Corp.

June 27, 2008 12:31 ET

Kinbauri Engages Scott Wilson Roscoe Postle Associates for Scoping Study at El Valle/Carles

OTTAWA, ONTARIO--(Marketwire - June 27, 2008) - Kinbauri Gold Corp. ("Kinbauri") (TSX VENTURE:KNB)(FRANKFURT:3KG.DE) is pleased to announce the engagement of Scott Wilson Roscoe Postle Associates ("SWRPA") under the direction of Mr. James W. Hendry, P. Eng., to complete a N.I. 43-101 compliant economic assessment ("Scoping Study"), for the El Valle and Carles mines in northwestern Spain. The Scoping Study will commence immediately with delivery of a final report in September 2008. In addition to SWRPA, contributors to the Scoping Study will include McIntosh Engineering (mine design and costing) of North Bay Canada, Golder and Associates of Toronto, Ontario (rock mechanics and mine hydrology), Ore Reserves Engineering (modelling and resource calculations and classifications) of Lakewood, Colorado. It is expected, subject to favourable results from the Scoping Study, that a Feasibility Study will then be completed, with delivery of the feasibility study targeted for Q1 of 2009.

The Scoping Study will focus, but not be limited, to the Black Skarn North and Area 107 zones at El Valle where 1,713,000 tonnes of indicated resources with average grades of 5.4 g/t Au and 0.79% Cu plus 2,912,000 tonnes of inferred resources with grades of 6.68 g/t Au and 0.55% Cu were estimated for those zones on January 17, 2008 by Ore Reserves Engineering in a N.I. 43-101 compliant report filed on Sedar. This equates to an estimated 297,000 ounces of gold and 29,700,000 pounds copper indicated plus 625,000 ounces of gold and 35,500,000 pounds of copper inferred for Area 107 and BSN. A 23,000 metre in-fill program focused solely on Black Skarn North and Area 107 is near completion and is expected to up-grade and add to the resource within Black Skarn North and Area 107.

Total resources for El Valle and Carles were estimated on January 17, 2008 by Ore Reserves Engineering at 4,200,000 tonnes of indicated resource with an average grade of 5.4g Au/t and 4,100,000 tonnes of indicated resource with average grade of 1.0% Cu(1) and 4,459,000 tonnes of inferred resource at an average grade of 6.7g Au/t and approximately 0.56% Cu(2). This equates to an estimated 725,200 ounces of gold and 87,100,000 pounds copper indicated plus 964,000 ounces of gold and 50,000,000 pounds of copper inferred. It is estimated that the mill at El Valle, which was put on care and maintenance in December, 2006, will be utilized, with up-grades, to process ore to be mined at El Valle and Carles (present rated capacity of 2,000 tonnes per day).

(1) 0.97% Cu for 4,054,000 tonnes resource, copper resource and grade is not estimated for 105,000 tonnes resource.

(2) 0.56% Cu for 4,074,000 tonnes resource, copper resource and grade is not estimated for 1,283,000 tonnes resource.

Kinbauri Espana's senior geologist, Santiago Gonzalez-Nistal and Dr. C. F. Gleeson, P. Eng. Kinbauri's Vice-President of Exploration, both qualified persons as defined by N.I. 43-101, have been responsible for Kinbauri's exploration and in-fill drill programs and quality control at El Valle and Carles. This press release has been prepared by Dr. V. N. Rampton, P. Eng in his capacity as a qualified person.

About Kinbauri

Kinbauri is a TSX VENTURE - Tier 1 Mineral Exploration Company focused on the development of mineral properties, primarily precious metal prospects in northwestern Spain, Nevada and Canada. Its immediate focus is to expand and upgrade resources to reserves at the El Valle property in Asturias, Spain in order to start operations at the mine and existing mill complex there in 2010. It currently has 49,567,013 common shares issued and outstanding.

This press release contains certain forward-looking statements, which are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected. Kinbauri undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.


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