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

Kinbauri Gold Corp.

April 17, 2009 09:15 ET

Kinbauri Secures $32M Funding for El Valle/Carles

OTTAWA, ONTARIO--(Marketwire - April 17, 2009) - Kinbauri Gold Corp. ("Kinbauri") (TSX VENTURE:KNB)(FRANKFURT:3KG.DE) is pleased to announce that it has signed a binding Letter of Intent with Glen Eagle Resources Inc. (TSX VENTURE:GER) whereby Glen Eagle will invest C$32M in return for a 45% interest in Kinbauri Espana S.L., which holds a 100% interest in the El Valle/ Carles gold/copper project and other exploitation concessions within the Rio Narcea Gold Belt in Northwestern Spain. The agreement also grants Glen Eagle the right to buy a further 5% interest for an additional C$5M. Kinbauri will remain the operator of the project. M Partners Inc. is acting as financial advisor to Kinbauri.

The transaction is scheduled to close by May 15, 2009 and is subject to the customary due diligence, execution of final Shareholder and Operating Agreements, all necessary approvals of regulatory, stock exchange and securities authorities and commissions and compliance with requirements of applicable securities laws.

Dr. Vern Rampton, Ph.D., President and CEO of Kinbauri said that "This funding should position Kinbauri Espana to raise the remaining funds to expedite re-start of production at El Valle/Carles. Given the current state of the financial markets, we are extremely pleased with this agreement. We are also pleased that our new partner, Glen Eagle Resources and its CEO, Mr. Jean Labrecque share our intention to aggressively move the project forward to production."

Other Corporate Development

Following recommendations in the recently completed Scoping Study (SEDAR filed Technical Report of March 9, 2009) for accessing the El Valle Mine via a decline near the entrance to the El Valle mill, Kinbauri's engineers have developed a plan that they believe could significantly reduce pre-production capital expenditures and shorten the time required to recommence operations at El Valle. Kinbauri will have this new mine plan vetted in the upcoming feasibility study which is scheduled to begin in May, 2009.

Dr. Rampton will record a "Beyond The Press Release" on the Company's official Investor Relations Site at http://www.agoracom.com/ir/kinbauri, where these developments will be discussed in detail. The recording is expected to be available on or after April 17th, 2009.

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. It has 53,243,051 common shares issued and outstanding.

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.

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.

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.

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