Kinbauri Gold Corp.

Kinbauri Gold Corp.

March 20, 2006 13:29 ET

Kinbauri Gold Corp.: Positive Results For Picotos, 5g Au/t Over 5.25 Meters

CARP, ONTARIO--(CCNMatthews - March 20, 2006) - Kinbauri Gold Corp ("Kinbauri")(TSX VENTURE:KNB) is pleased to announce that diamond drill hole 06K15, which was drilled to test the Picotos Vein System ("Picotos") on the northern part of Corcoesto property ("Corcoesto") in northwestern Spain, was completed at 118.8m. Significant gold intercepts in 06K15 are:

(1) 1.53g/t over 8.9m beginning at 26m and including 3g/t over
(2) 5.0g/t over 5.25m beginning at 54.9m and including 10.2g/t
over 1.15m.
(3) 2.15g/t over 1.6m beginning at 93.8m.
(4) 3.2g/t over 1.0m beginning at 114.1m

Rio Narcea Gold Mines, Ltd. (RNGM) had previously trenched the surface projection of the high grade gold intercept and realized values of 98.0g/t over 1.2m and 28.6g/t over 1m in separate trenches. A recently completed geochemical soil program by Kinbauri suggests that Picotos has a strike length of approximately 800m.

Kinbauri is completing a 2100m diamond drilling campaign as part of its earn-in requirements for a 65 percent interest of the Corcoesto from RNGM. The campaign is focused on extending high grade gold zones within the Pozo de Ingles ("Pozo") and Peton de Lobo ("Lobo") vein systems. A secondary component of this campaign is to better define the locations, orientations and gold content of a number of previously delineated vein systems, including Picotos, within the northern part of Corcoesto. Systematic geochemical soil sampling program completed there has successfully defined the orientation of these, and other, vein systems (reference Kinbauri press release of March 2, 2006). Trenching is underway and shallow drilling will be subsequently completed on some of these northern systems. Kinbauri plans to release assay results from trenching and drilling for each vein system after completion of drilling upon each system (including Pozo and Lobo).

The program at Corcoesto is being supervised by Dr. C.F. Gleeson P.Eng., Kinbauri's Vice-President of Exploration and a qualified person under N.I. 43-101. For details of Kinbauri's treatment of samples and quality control program, please refer to Kinbauri press release of March 2, 2006.

Kinbauri would also like to announce that it had previously participated in a private placement of C2C Inc. ("C2C") by purchasing 1,000,000 units of C2C; each Unit consists of one common share in the capital of C2C and one warrant of C2C; each warrant entitles Kinbauri to acquire one common share of C2C at a price of $0.30 until April 22, 2007. As a result of the completion of this private placement, it holds voting shares and securities convertible into voting shares, totalling 2,000,000 shares. Kinbauri recently became aware that this represents 13.3% of the issued and outstanding voting shares of C2C. Kinbauri had purchased the Units in order to enable its agreement with RNGM re Corcoesto and for investment purposes. Kinbauri does not intend to acquire any further securities of C2C at this time. The percentage of the issued and outstanding shares owned by Kinbauri has been calculated on a partially diluted basis, reflecting Kinbauri exercising all of its convertible securities, and no other increase in the number of issued and outstanding shares of C2C. The actual percentage of shares owned by Kinbauri may be lower in the event that C2C issues additional shares, prior to the exercise of the warrants by Kinbauri. An early warning report in respect of this transaction will be filed on SEDAR. A copy of this report and further information can be obtained from Kinbauri at the address provided above.

Kinbauri is a junior exploration company with 9,469,189 common shares issued and outstanding and 10,442,189 fully diluted.

This press release was prepared by Dr. V.N. Rampton, P.Eng. in his capacity as a qualified person.


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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