Kinbauri Gold Corp.

Kinbauri Gold Corp.

December 16, 2008 11:54 ET

Kinbauri Options Fiedmont Pt/Pd Property to Pacific North West Capital

OTTAWA, ONTARIO--(Marketwire - Dec. 16, 2008) - Kinbauri Gold Corp. ("Kinbauri") (TSX VENTURE:KNB)(FRANKFURT:3KG.DE) has entered into an Option Agreement (the "Agreement") with Pacific North West Capital Corp. (TSX.PFN) ("PFN") whereby PFN may earn a 60% interest in Kinbauri's Fiedmont Property ("Fiedmont") subject to a 2% NSR held by the original vendors; the vendor's NSR is subject to a one percent, $900,000 buy-back. Under the terms of the Agreement, PFN is required to pay Kinbauri an aggregate amount of $98,000, issue 150,000 PFN freely tradable common shares to Kinbauri, subject to regulatory hold periods, and expend $400,000 on exploration prior to November 30th, 2010 to earn its interest. PFN's first year commitment is mandatory and is as follows: $38,000 cash payment and issue of 50,000 PFN shares to Kinbauri and expend $150,000 on exploration prior to November 30th, 2009. Fiedmont is located 30km north of Val d'Or and is road accessible. The Agreement is subject to regulatory approval.

Fiedmont Platinum Group Element ("PGE") Property

Kinbauri is pleased to have PFN participate in the 84 claim (3,458 ha) Fiedmont Property; 40 claims of which were staked in 2008. Kinbauri completed a 4 hole (240m) diamond drilling program plus a heliborne magnetometer survey in 2006. The drill program, which targeted 4 showings within a small area, identified 3 mineralized zones; some of the better intercepts were:

- 1192 ppb Pt+Pd and 1238ppm Ni over 8.6m

- 1120 ppb Pt+Pd and 1255ppm Ni over 2.5m

- 1483 ppb Pt+Pd and 781ppm Ni over 5.0m

The airborne survey indicated the presence of two large mafic/ultramafic differentiated complexes. Recently, a 2km x 2km grid was cut to cover most of the northern complex, including all showings identified to date; a total of 1,842 humus samples were collected for base and noble metal geochemical analysis. During sample collection a large area of mafic breccia was noted. PFN plans to initiate diamond drilling this winter, focusing on known areas of PGE mineralization and targets defined by the soil (humus) sampling program.

Dr. Vern Rampton, P. Eng., President and CEO of Kinbauri commented "We are happy to see our Fiedmont property move forward, especially with a partner of Pacific North West Capital's stature and its in house expertise and experience. Joint venturing of our North American prospects will allow us to concentrate on our recently announced initiative related to the development of our assets in Spain".

Other News: Aztec Gold Property in Nevada

In other news, Kinbauri has re-negotiated the lease agreement with privately held Anchor Minerals ("Anchor") of Wichita, Kansas for the Aztec Property ("Aztec") in Nevada. Expenditure commitments were waived for 2008 and advance royalties were reduced to $12,500 US. Due to the uncertainty of being able to fund exploration in 2009, the Kyla Property lease was allowed to lapse. However, Anchor has indicated preferential treatment for Kinbauri should it plan to proceed in the future.

Aztec lies along the Round Mountain Goldfield Trend, where over 17M ounces gold and 175M ounces of silver have been produced. Data collation, mapping, trenching and soil sampling has defined highly prospective targets (the targets consist of both high grade feeder and/or replacement gold zones) for drilling.

About Kinbauri:

Kinbauri is a TSXV - 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 2011. It currently has 48,852,695 common shares issued and outstanding.

About Pacific North West Capital:

Pacific North West Capital Corp. (TSX.PFN OTCBB.PAWEF Frankfurt.P7J) is a mineral exploration company focused on platinum group metals (PGMs) and base metals. Management's corporate philosophy is to be a project generator, explorer and project operator with the objective of option/joint venturing projects with major mining companies through to production. To that end, Pacific North West Capital's current option/joint ventures agreements are with Anglo Platinum, Xstrata Nickel, Benton Resources, First Nickel and SOQUEM. Pacific North West Capital Corp. has approximately $7.4 million in working capital and securities.

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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