Kinbauri Gold Corp.
TSX VENTURE : KNB

Kinbauri Gold Corp.

April 18, 2007 20:25 ET

Kinbauri Exercise of Over Allotment Option

OTTAWA, ONTARIO--(CCNMatthews - April 18, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES, OR DISSEMINATION IN THE UNITED STATES.

Kinbauri Gold Corp. (TSX VENTURE:KNB) ("Kinbauri") reports that further to its press release of February 16, 2007, the previously announced brokered private placement for $13,500,000 represented by 27,000,000 subscription receipts has been over-subscribed. Pursuant to an over allotment option, Kinbauri will issue an additional 4,821,429 subscription receipts at a price of $0.56 per subscription receipt. Each subscription receipt will be automatically converted into a unit of the Company upon receipt of regulatory approval. Each Unit will be comprised of one common share and one-half common share purchase warrant exercisable until September 30, 2008 at an exercise price of $0.70. M Partners Inc. and Clarus Securities Inc. have been engaged as agents for the offering under the same terms as previously disclosed.

The proceeds of the over allotment option inclusive of the Agents' commissions will be placed in escrow pending receipt of TSXV approval of Kinbauri's Acquisition in northern Spain . Documentation for TSXV approval is expected to be completed before the end of April, 2007. In the event that Kinbauri does not satisfy the escrow release conditions by July 30, 2007, the proceeds will be returned to the subscribers.

Upon the conversion of the subscription receipts into Units, the net proceeds of the financing will be used toward (a) the costs of the Assets purchased by Kinbauri Espana, (b) exploration and definition drilling at El Valle, (c) determining the feasibility of various underground mining methods at El Valle, (d) maintenance of mill and mine facilities at El Valle and Carles and (e) general working capital purposes. For further details of the Acquisition , Assets and Work Programs please refer to the press releases of January 16th, 2007, February 27th, 2007 and April 5th, 2007.

Kinbauri is a mineral exploration company focused on the development of mineral properties, primarily precious metal prospects in northwestern Spain, Nevada and Canada. Currently it has 11,429,189 common shares issued and outstanding and 13,524,689 fully diluted.

For further information, please contact: kinbauri@kinbauri-gold.com.

THIS PRESS RELEASE WAS PREPARED BY KINBAURI GOLD CORP.

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.

THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED OR DISAPPROVED THE CONTENT OF THIS RELEASE.

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