Kettle River Resources Ltd.

Kettle River Resources Ltd.

December 14, 2006 14:27 ET

Peregrine and Kettle Agree to Terminate Agreement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 14, 2006) - Kettle River Resources Ltd. ("Kettle River") (TSX VENTURE:KRR) announces that its indirect interest, through DHK Diamonds Inc. ("DHK"), in the WO Diamond Project Joint Venture ("WOJV"), NWT, Canada, has decreased to 3.59%. The WO Diamond Project contains the plus nine hectare DO-27 and the plus three hectare DO-18 diamondiferous kimberlite pipes, among others.

DHK, a private company owned equally by Dentonia Resources Ltd. ("Dentonia"), Horseshoe Gold Mining Inc. ("Horseshoe") and Kettle River, is a party to the December 6, 2002 WOJV Agreement. On October 5, 2006 DHK formally elected to contribute to the WOJV $14.9 million budget. The DHK 20% required contribution of $3,149,286.70 due December 9, 2006 was not made resulting in a dilution of DHK interest to 10.78%.

While Kettle River raised and deposited its portion of $1,049,762.35, the remaining amounts derived from contributions of Dentonia and Horseshoe were not made and as a result of DHK's dilution Kettle River's indirect interest in the WOJV has materially changed. Peregrine and Kettle have mutually agreed to terminate their business combination announced on October 26, 2006. Both companies will continue to explore options to consolidate the WOJV interests.

On Behalf of the Board of Directors:

Ellen Clements, President

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

Contact Information

  • Kettle River Resources Ltd.
    Larry Widmer
    (250) 764-0577
    Kettle River Resources Ltd.
    Ellen Clements
    (250) 445-6756 or Toll Free: 1-800-856-3966
    (250) 445-2259 (FAX)
    Kettle River Resources Ltd.
    Brian McClay
    (604) 689-7902
    Kettle River Resources Ltd.
    Gerry Rayner
    (604) 925-5690