Kinbauri Gold Corp.
TSX VENTURE : KNB
FRANKFURT : 3KG.DE

Kinbauri Gold Corp.

March 13, 2009 10:01 ET

Kinbauri Files Revised Scoping Study; Increased Copper to Be Recovered Boosts Economics

OTTAWA, ONTARIO--(Marketwire - March 13, 2009) - Kinbauri Gold Corp. ("Kinbauri") (TSX VENTURE:KNB)(FRANKFURT:3KG.DE) announced today that it has filed a revised Preliminary Economic Assessment or Scoping Study (the "Scoping Study") for it's 100% owned El Valle/CarlTs project (the "Project") on Sedar. The Study was prepared by Scott Wilson Roscoe Postle Associates ("SWRPA"). An increase in revenue, cash flow and Net Present Value ('NPV') above those previously reported by Kinbauri is mainly a result of previously unrecognized copper to be recovered.

Under the Base Case Scenario, the results reveal a pre-tax NPV (10% discount rate) of CAD $146M and an Internal Rate of Return ('IRR') of 44%. Using current metal prices and exchange rates, the Project now has a pre-tax NPV (10% discount rate) of CAD $232M and an IRR of 59%. The financial highlights are summarized below:



Scoping Study(1) Financial Summary
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Base Case Scenario Current Metal Prices
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Undiscounted cash flow (pre-tax) CAD 299,769,600 CAD 443,176,000
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NPV @ 10% (pre-tax) CAD 146,121,600 CAD 231,891,200
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IRR (pre-tax) 44% 59%
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Undiscounted cash flow (after tax) CAD 228,800,000 CAD 343,448,000
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NPV @ 10% (after tax) CAD 102,484,800 CAD 171,068,800
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IRR (after tax) 35% 48%
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Total gold production 894,000 oz 894,000 oz
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Total copper production 89,825,000 lbs. 89,825,000 lbs.
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(1) All conversions to CDN dollar are based on an exchange rate of 1.6 CDN
equals 1 euro
(2) Base case price $750 Au/oz, $2.50 Cu/lb, Exchange rate Euro to USD 1.4
(3) Current price $910 Au/oz, $1.50 Cu/lb, Exchange rate Euro to USD 1.3


Link to SEDAR: (http://sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00004130)

Detailed Cash Flow and Assumptions

The table below presents a complete list of assumptions and results comparing the base case to current prices for a scenario which involves direct access from the mill ("The Ramp Model") to the underground resources at El Valle. SWRPA had assessed both the Ramp Model and a model that involved hoisting ore to the mill vicinity through a shaft. The Ramp Model was clearly more economic and management believes that modification of the mine plan using a ramp can help reduce capital costs ("CAPEX') from those stated herein. Some of the cost assumptions, in particular the mining costs estimated by SWRPA are based on contractor quotes and are therefore considered to be of a higher level of cost accuracy than a preliminary economic assessment and in some cases to be plus or minus 15%, which is significantly more concise than standard scoping study estimates. All figures are in Euros to reflect costs of production in Spain.



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Project Parameter Base Case Current Prices
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Total Ore Tonnes Processed 6,331,000t 6,331,000t
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Average Diluted Gold Grade 4.77 g/t 4.77 g/t
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Average Diluted Copper Grade 0.785% 0.785%
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Gold Recovery (total) 92% 92%
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Copper Recovery (total) 82% 82%
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Total Gold Production 894,000 oz 894,000 oz
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Total Copper Production 89,825,000 lbs 89,825,000 lbs
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Gold Price 536 EUR/oz (750 USD/oz) 700 EUR/oz (910 USD/oz)
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Copper Price 1.79 EUR/lb (2.50 USD/lb) 1.15 EUR/lb (1.50 USD/lb)
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Exchange Rate: US to EUR 1.4 1.3
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Gold Revenue 466,825,000 EUR 609,985,000 EUR
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Copper Revenue 154,628,000 EUR 99,913,000 EUR
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Total Revenue 621,453, 000 EUR 709,898,000 EUR
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Cash Operating Cost 303,125,000 EUR 303,125,000 EUR
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Pre-Production CAPEX 67,474,000 EUR 67,474,000 EUR
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Deferred CAPEX 22,449, 000 EUR 22,449,000 EUR
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Total Project CAPEX 89,923,000 EUR 89,923,000 EUR
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Cash cost per Au oz
without Cu credits 348 EUR (USD 487) 348 EUR (USD 452)
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Cash cost per Au oz
with Cu credits 261EUR (USD 365) 299EUR (USD 389)
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Cash Flow (pre-tax) 187,356,000 EUR 276,985,000 EUR
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NPV at 10% (pre-tax) 91,326,000 EUR 144,932,000 EUR
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IRR (pre-tax) 44% 59%
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Cash Flow (post-tax) 143,000,000 EUR 214,655,000EUR
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NPV at 10% (post-tax) 64,053,000 EUR 106,918,000 EUR
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IRR (post-tax) 35% 48%
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Payback Period 1.8 years 1.4 years
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Cautionary Statement as Required by NI 43-101, Sect 2.3 (3): This assessment is preliminary in nature; it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized.

Total mineral resources for the Project were estimated as of March 12th, 2009 by SWRPA to be :

- Measured: 2.36Mt at 3.6g Au/t and 0.85% Cu

- Indicated: 4.00Mt at 5.4g Au/t and 0.80% Cu

- Inferred: 7.26Mt at 5.4g Au/t and 0.45% Cu.

This press release has been prepared by Dr. V. N. Rampton, P. Eng in his capacity as a qualified person under the guidelines of NI 43-101; it has also been reviewed and approved for release by SWRPA.

About Kinbauri:

Kinbauri is a TSXV - Tier 1 Mineral Exploration Company focused on the development of precious metal prospects in Spain, Nevada and Canada. Its immediate focus is to begin operations at its El Valle/Carles property in Asturias, northwestern Spain by 2011. Immediately prior to this placement it had 52,103,051 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.

VISIT:

Kinbauri Gold's Hub at http://www.agoracom.com/IR/kinbauri where investors can post questions and receive answers or review questions and answers already posted by other investors. Kinbauri Web-Site: www.kinbauri-gold.com

THIS PRESS RELEASE WAS PREPARED BY KINBAURI GOLD CORP. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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