Kinbauri Gold Corp.

Kinbauri Gold Corp.

November 20, 2006 12:36 ET

Kinbauri Gold Announces $1M Private Placement

OTTAWA, ONTARIO--(CCNMatthews - Nov. 20, 2006) - Kinbauri Gold Corp. ("Kinbauri") (TSX VENTURE:KNB) is pleased to announce that it intends to complete a brokered private placement of up to 1,900,000 Units of Kinbauri at a price of $0.55 per Unit for gross proceeds of $1,045,000. Each Unit will consist of one common share and one-half of a common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of $0.75 for a period of 18 months from the date of issuance. M Partners Inc. is acting as sole agent. The proceeds of the financing will be used for drilling at the Corcoesto gold project ("Corcoesto") in northwestern Spain, due diligence and development planning at the recently announced El Valle/Carles project in northern Spain and general working capital purposes.

Kinbauri is presently undertaking a 5,000m plus drilling program to increase the open-pittable resources at Corcoesto where an increase of 25% to 35% of present defined resources could lead to a development decision according to independent qualified person Alan C. Noble of Ore Reserves (see press release of August 24th, 2006).

Kinbauri is also completing its due diligence of the El Valle mill, the El Valle and Carles mines and mineral prospects lying along the Rio Narcea Gold Belt (in total the "Assets"). The Company has signed a letter of intent with Rio Narcea Gold Mines Ltd. ("RNGM"), whereby it can exercise an option to purchase these Assets by January 15th, 2007 and complete the purchase by March 31st, 2007 (see press release of October 31st, 2006 for details). Kinbauri plans to have its due diligence completed by December 15th, 2006. It has engaged two independent experts in mine development and operating to (i) review the mill and mining operations, (ii) determine possible improvements in operating efficiency and (iii) estimate the cost of pre-development work prior to re-starting mining and milling operations. RNGM is putting the mines and mill on care and maintenance in late December of this year. Dr. C.F. Gleeson, Kinbauri's VP-Exploration, visited the mines and mill in late October and reports that the geological environment at the mine sites and along the Rio Narcea Gold Belt allows for significant expansion beyond the resources previously reported by RNGM (2005 Annual Report).

Kinbauri is a mineral exploration company focused on the development of mineral properties, primarily precious metal prospects, in northwestern Spain, Nevada and Canada. It currently has 9,529,189 common shares issued and outstanding and 10,457,189 fully diluted.

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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