King's Bay Gold Corporation

King's Bay Gold Corporation

December 11, 2006 17:01 ET

King's Bay Gold Ultra High-Grade Gold Discovery Grading up to 2,942.7 and 806.9 Grams Per Ton, Red Lake

WINNIPEG, MANITOBA--(CCNMatthews - Dec. 11, 2006) - King's Bay Gold Corp. (TSX VENTURE:KBG) and Mainstream Minerals Corp. are pleased to announce the discovery of many new ultra high-grade gold veins at the Bobjo Mine, Dent and Earngey Townships, Red Lake District of Ontario. Surface grab sampling of one vein, with a width of approximately 6 metres, has just returned ultra high-grade gold values of up to 2,942.7 g/t (85.84 oz/t) and 806.9 g/t (23.54 oz/t) from amongst the samples taken.

The partners have just recently completed a ground stripping program using a bulldozer and a backhoe. As a result, many new gold bearing quartz veins, shears and stringers were exposed. Of the many new dozens of criss-crossing gold bearing entities only a dozen or so have been sampled to date. Most flat lying veins could not be sampled properly so a channel sampling program will be carried out in the not too distant future.

Only approximately 80 acres have been stripped to date. However the partners intend to strip an additional 200 more. Presently, more claims are being staked and a geophysical survey (Mag/VLF) will be carried out over the entire land mass as well as over the ice on both sides of the peninsula.

Other veins and stringers also returned very high-grade gold values including 55.34 g/t (1.61 oz/t), 42.65 g/t (1.24 oz/t), 42.37 g/t (1.23 oz/t), 36.89 g/t (1.07 oz/t), 36.23 g/t (1.05 oz/t), etc.

All grab samples were taken from mineralized quartz vein material, shears and contact material between the veins and mafic volcanics under the help and strict supervision of John Archibald, P.Geologist, Ron Rivet exploration coordinator for King's Bay and Gerald L. Colborne, B.Sc., M.Sc., P.Eng., P.Geol., F.G.A.C., M.C.I.M.. Mr. Colborne is the Qualified Person under NI 43-101. All of the samples were analyzed by Accurassay Laboratories of Thunder Bay, Ontario, using the standard fire assay method.

The latest batch of surface grab sample results are as follows:

Gold oz/t Gold g/t

0.069 2.370
1.057 36.253
0.049 1.669
85.840 2,942.765
0.014 0.479
0.014 0.492
0.053 1.811
0.391 13.402
0.002 0.069
0.316 10.848
1.236 42.373
0.020 0.693
0.299 10.240
0.457 15.675
1.244 42.655
1.076 36.890
0.611 20.955
0.069 2.351
0.164 5.634
0.024 0.825
0.002 0.079
1.614 55.341
23.540 806.990
0.370 12.676
0.008 0.274
0.291 9.990
0.286 9.805
0.012 0.397

The partners are extremely pleased with these developments, especially with the discovery of these new very high-grade gold bearing veins that have never been seen or tested before. The area has a history of gold and base metal production going back as far as 80 years and the work presently being carried out by Mainstream and King's Bay represents the commencement of the first modern, systematic exploration of this property.

The Bobjo Property is located between the former South Bay and Uchi Lake gold mine along the east limb of the Confederation Assemblage. It is comprised of a total of 9 patented claims and 17 claim units with a major power transmission line passing through the southern part of the land package. The partners are planning a large and aggressive exploration program to commence in early 2007.

About King's Bay Gold

King's Bay Gold Corporation is a very active and well financed Canadian mineral exploration company with nine mineral projects strategically located in Canada's gold camps. The Company also owns its own diamond drill rigs. Strategic locations include - (i) a property located directly adjacent to Canada's richest gold mine, (ii) two past producing gold mines, and (iii) other locations that are in very close proximity to either past producers and / or recent discoveries.

About Mainstream Minerals

Mainstream Minerals Corp. is a private exploration and development company focused on precious metal mining properties with economic potential, with the aim of bringing such properties to commercial production.

Shares Outstanding: 30,795,205

Cash on hand: $1,100,000

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe KBG's future plans, objectives or goals, including words to the effect that KBG or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties

The TSX Venture Exchange has not reviewed and does not accept, responsibility for the adequacy or accuracy of this release.

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