Kilo Goldmines Ltd.: Maiden Mineral Resource Estimates for the Kitenge and Manzako Gold Deposits and Updated Mineral Resource Estimate for the Adumbi Gold Deposit

Somituri Project, DRC

TORONTO, ONTARIO--(Marketwired - Jan 30, 2014) - Kilo Goldmines Ltd. (TSX VENTURE:KGL)(FRANKFURT:02K) ("Kilo" or the "Company"), a gold exploration company with a focus on projects in the gold rich greenstone belts of the northeastern Democratic Republic of the Congo ("DRC"), today announced the results of its Canadian National Instrument ("NI") 43-101 Mineral Resource Estimate (MRE) for its 71.25% interest in the Somituri Project consisting of the Adumbi, Kitenge and Manzako gold deposits.

An independent updated MRE was prepared for the Adumbi deposit, and maiden Inferred Mineral Resources were estimated for the Kitenge and Manzako deposits by Canadian consulting firm Roscoe Postle Associates Inc ("RPA") geoscientists and engineers in London, United Kingdom and Toronto, Canada.

HIGHLIGHTS

• The total estimated Inferred Mineral Resource at the Somituri Project contains an estimated 1.675 million ounces of gold (Moz) (Table 1) at a grade of 2.5 g/t Au. The Mineral Resource estimates are based on an open pit scenario at Adumbi and an underground scenario at Kitenge and Manzako. Gold grades have been capped and the resources at Adumbi have been constrained by a Whittle pit.

• Based on a comparison using uncapped gold grades and no Whittle constraint, the 2013 Adumbi resource estimate gold grades and contained ounces have increased compared to the 2012 estimate. At a cut-off grade of 1.0 g/t Au, these have increased from 2.0 g/t Au to 2.4 g/t Au and from 1.61 Moz to 1.78 Moz, respectively.

• The updated 2013 Mineral Resource estimate for Adumbi is 19.11 Mt @ 2.2 g/t Au for a total of 1.362 Moz of gold.

• Maiden Inferred Mineral Resource estimates for the Kitenge and Manzako deposits are 0.191 and 0.122 Moz respectively. The Kitenge and Manzako drill hole spacing is currently too wide to determine high grade plunge direction(s), hence the high grade shoots could not be modelled separately and the gold grade was capped universally at 50 g/t Au.

• There is excellent potential to expand the Inferred Mineral Resources with more drilling. Greater than 50% of the mineralized blocks at Kitenge and Manzako were not classified as Mineral Resources in areas of wide spaced drilling. Additional drilling could determine if part of the resource at either deposit could be potentially be mined with a starter open pit.

• Gold mineralization at Adumbi, Kitenge and Manzako remains open along strike and at depth.

• RPA has recommended infill drilling, increased QA/QC programs, digital terrain surveys, in addition to the re-survey of drill collars and historical workings on the Adumbi deposit in order to potentially increase the resource size and upgrade Mineral Resources from Inferred to Indicated status.

The updated 2013 RPA estimate for Adumbi was based on a review of the Adumbi deposit including remodelling, grade capping and considering the CIM requirement for Mineral Resources to have "reasonable prospects for economic extraction". The RPA estimates for Kitenge and Manzako are based on drilling results that were available to November 15, 2013.

Table 1 shows the current Mineral Resource estimate for the Somituri Project's Imbo Licence.

The following notes apply to tables 1, 2, 4 and 5:

1. CIM definitions were followed for Mineral Resources.
2. Mineral Resources were estimated at a cut-off grade of 0.9 g/t Au for Adumbi, constrained by a Whittle pit shell with a processing and G&A cost of US$30/t. A cut-off grade of 2.7 g/t Au was used for Kitenge and Manzako based on potential underground mining scenarios.
3. Mineral Resources were estimated using a long-term gold price of US$1,200 per ounce.
4. A minimum mining width of two metres horizontal was used.
5. A maximum of four metres internal waste was used.
6. Adumbi bulk densities of 1.8 for oxide, 2.2 for transition, and 3.0 for sulphide materials were used.
7. Kitenge and Manzako bulk densities of 1.7 for oxide, 2.2 for transition, and 2.7 for sulphide materials were used.
8. High gold assays were capped to 18.0 g/t Au for Adumbi, 50.0 g/t Au for Kitenge, and 50.0 g/t Au for Manzako prior to compositing at two metre intervals.
9. Estimated historical mining has been removed.
10. Numbers may not add due to rounding.

Commenting on today's independent MREs, Kilo's President and Chief Executive Officer Alex van Hoeken, said: "We are very pleased that not only has the RPA resource model on the Adumbi deposit shown a major improvement in ounces and gold grade when compared with the previous Inferred Mineral Resource Estimate, it also remains robust within newly applied constraining parameters as a first step towards economic modeling."

"Our updated Mineral Resource estimate reaffirms that the Adumbi deposit has significant gold mineralization, and potential remains to significantly increase both the gold grade and number of ounces with further geological understanding of the control of mineralization and systematic infill and step out drilling. In addition, the preliminary test work indicates that Adumbi is in most parts non-refractory with a significant gravity recoverable gold component, thus indicating a potentially economically extractable deposit."

"The maiden resource estimates at the Kitenge and Manzako deposits firmly establish the concept of being able to delineate additional gold resources within a short radius on the Imbo Licence which supports our team's exploration guideline for increasing resources to establish a multi-pit single plant mining operation. The high grade gold in these deposits is particularly encouraging. Moreover, the licence has many more untested targets as defined by historical colonial workings, artisanal workings, airborne geophysical and soil geochemical and surveys. All of these exploration targets warrant testing for additional resources in due course."

2013 MINERAL RESOURCE ESTIMATE FOR THE SOMITURI PROJECT'S IMBO LICENCE

In 2013, the Company appointed RPA to update the 2012 Inferred MRE on Adumbi and prepare a maiden MRE for the Manzako and Kitenge gold deposits.

The methodology applied and the results are presented in the following sections.

RESULTS

Based on the preliminary cost and revenue parameters applied in the preparation of the MRE, Adumbi is considered potentially economic at a cut-off grade of 0.90 g/t Au as an open-pit (1:7 strip ratio) deposit, whilst Kitenge and Manzako are considered potentially economic at a cut-off grade of 2.70 g/t Au by underground mining methods. Further exploration on Kitenge and Manzako may be able to delineate mineralization near surface and establish a starter surface pit.

The Inferred MRE for the Adumbi, Manzako and Kitenge deposits based on the aforementioned parameters and the combined resource estimate for the Imbo Licence as of December 31, 2013 are summarized and discussed in the following sections.

The Adumbi, Kitenge and Manzako gold deposits occur within a four kilometre radius of a central point on the 133 km² Imbo Licence.

Adumbi

Table 2 illustrates Inferred MRE tonnes and grade subject as a function of cut-off grades and the effect of capping assayed gold values at 18 g/t Au for the Adumbi deposit. The reported Inferred MRE as it pertains to the 0.9 g/t Au cut-off grade is highlighted in bold.

A comparison of the 2012 and 2013 Inferred MREs prepared by The Mineral Corporation of South Africa (2012) and RPA (2013) is presented in Table 3. The contained ounces and gold grade for the 2012 Adumbi estimate was based on uncapped grades and was unconstrained by a preliminary pit shell.

Notes:

1. The Mineral Corporation 2012 block model is unconstrained and has uncut gold grades.
2. The RPA 2013 Block Model Estimate is reported as unconstrained and with uncut gold grades for comparative purposes only.

The results of the RPA Whittle analysis, based on the Whittle inputs as outlined in the Methodology section and the calculated cut-off grade of 0.9 g/t Au is illustrated in Figure 2.

With respect to the Adumbi deposit, the following points should be noted:

• RPA have indicated that:
  • by geo-referencing the drill collars to a digital terrain survey, as well as re-surveying historical workings, it is possible that the Mineral Resource classification could be upgraded to the Indicated category in some areas of the deposit; and
  • infill and step out drilling may confirm the continuity of the resource and assign grade and ounces to areas tapered due to the inherent modelling parameters diminishing grade influence with distance from the hole.
• A comparison between the 2012 and 2013 uncapped versions of the Adumbi Inferred MRE show that in general, at a cut-off grade of 1 g/t Au or above, grade and total ounces have increased on average over the cut-off ranges indicated by 18% and 20% respectively.

Kitenge

Table 4 presents the Inferred MRE size and grade as a function of gold cut-off grade, with and without the application of a 50 g/t Au cap, for Kitenge.

The Inferred MRE for Kitenge has been prepared using a 50 g/t gold cap and a 2.7 g/t gold underground cut-off grade (see bold text in Table 4 and Figure 3).

Manzako

Table 5 presents the Inferred MRE size and grade as a function of gold cut-off grade, with and without the application of a 50 g/t gold assay cap, for Manzako.

The Inferred MRE for Manzako has been prepared using a 50 g/t gold cap and a 2.7 g/t gold underground cut-off grade (see bold text in Table 5 and Figure 4).

Combined Inferred Mineral Resource Estimate for the Imbo Licence

Based on gold caps of 18 g/t Au and 50 g/t Au and cut-off grades of 0.9 g/t Au and 2.7 g/t Au for open cast and underground mining respectively, the combined Inferred MRE for the Imbo Licence is presented in Table 1.

It is important to note that all resources defined to date fall within a four kilometre radius of a defined central point on the Company's Imbo Licence, which is in alignment with the Company's business strategy of creating a central processing hub on this Licence.

Furthermore, the Imbo License hosts a number of historical and artisanal gold workings unrelated to the modeled resources. Exploration, will in part at least, focus on evaluating untested targets with the objective of delineating additional zones of gold mineralization.

METHODOLOGY

In accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") definition standards (2010), RPA used a combination of Whittle® analysis and underground block mining grade cut-off calculations, to estimate open pit and underground Inferred Mineral Resources.

RPA generated wireframe models for each of the mineralized lenses, based on a 0.5 g/t gold cut-off that were used in geological and grade continuity studies in order to constrain the block model interpolation. Three-dimensional models of the Imbo lenses were constructed in a collaborative effort by Kilo and RPA. Mineral Resources were estimated by an Inverse Distance Cubed ("ID³") method. Historical mining was estimated and removed from the block models. A two metre minimum mining width and a maximum of four metres of internal waste was applied to all of the deposits.

The key parameters employed in estimating cut-off grade and Inferred Mineral Resources are summarised below:

• Open Pit Mining (Whittle Inputs for Adumbi):
  • Block size: 8 m x 8 m x 8 m
  • Pit slope angle: -45°
  • In-situ bulk densities: 1.8 g/cm³ for oxide; 2.2 g/cm³ for transition and 3.0 g/cm³ for sulphide
  • Mining cost: 2.00 USD/t Waste; 2.50 USD/t Run-of-Mine (RoM)
  • Mining extraction: 95%
  • Mining dilution: 5%
  • Historic mining: Estimated and removed from block model
  • Capped gold grade: 18 g/t

• Underground Mining (Manzako and Kitenge)¹:
  • Block size: 8 m x 8 m x 8 m
  • Capped gold grade: 50 g/t prior to compositing at 2 m intervals
  • Mining cost: USD 60.00/t
  • In-situ bulk densities: 1.7 g/cm³ for oxide; 2.2 g/cm³ for transition and 2.7 g/cm³
  • Historic mining: Estimated and removed from block model
  • Lenses displayed: Resource blocks with a grade equal to or greater than 2.7 g/t

• Process, General and Administration (G&A) Costs and Others:
  • RoM throughput: 3.0 Mt/a (dry)
  • Gold recovery: 90 %
  • Process & G&A Cost: 30.00 USD/t
  • Gold price: 1,200 USD/oz
  • Royalty: 4.50 USD/oz

¹ More than 50% of the interpolated blocks were observed to be non-contiguous or not within 40 m of a mineralized drill hole and were hence, considered un-classifiable pursuant to CIM definitions and excluded from the MRE.

QUALITY ASSURANCE, QUALITY CONTROL AND DATA VERIFICATION:

HQ sized core (63 mm diameter core) was drilled through the transition zone from highly weathered and/or oxidized units to fresh unweathered competent rocks. The fresh rock was drilled with NQ size drill rods, producing 48 mm diameter core. Recoveries averaged greater than 95% within the mineralized zones.

Assaying of Kilo's samples was completed at ALS Minerals, an independent, ISO-credited laboratory in Johannesburg, South Africa, using fire assay fusion, followed by a gravimetric analysis procedure. Quality assurance and quality control was monitored and audited by Kilo with a quality-control program, which included standards, blanks, repeats and internal ALS Minerals quality-assurance procedures.

RPA recompiled the Somituri Project drill-hole database including all assay data. In RPA's opinion, the main limitations on verifying assay data are the lack of diamond drill core duplicate sampling as well as poor correlation within the Kilo inserted standards and laboratory standards.

QUALIFIED PERSONS

Disclosures of a scientific or technical nature in this release have been approved by Stanley Robinson, P. Geo., Exploration Manager of Kilo and a "Qualified Person" for the purpose of National Instrument 43-101.

The 2013 Mineral Resource estimate for the Somituri Project disclosed in this news release have been prepared by Ian Blakley, P.Geo., an employee of RPA and independent of Kilo. Mr. Blakley is a "Qualified Person" for the purpose of National Instrument 43-101. The Mineral Resources have been classified in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves, (November 2010). Mr. Blakley has read and approved the contents of this news release as it pertains to the disclosed mineral resource estimate.

RPA's complete NI 43-101 compliant technical report will be filed on SEDAR, as soon as practical and within 45 days of this press release.

ABOUT KILO

Kilo is a Canadian gold exploration company, listed on the TSX Venture Exchange under the symbol 'KGL' and on the Frankfurt Exchange under the symbol '02K'. Kilo holds exploitation and exploration licences covering some ~2,700 km² of iron and gold favourable Archean Kabalian Greenstones in the northeast Democratic Republic of the Congo.

Incorporated within this area is:

• KGL Somituri SPRL (71.25% owned by Kilo), a holder of eight non-contiguous exploitation licences (606 km²).
• KGL Isiro SARL (100 % owned by Kilo), a holder of 12 exploration licences covering some 2,056 km². This project has been joint ventured with Randgold Resources since December 6, 2012, whereby Randgold can earn 51% by completing a Pre-Feasibility Study on a discovery. (see press release December 06, 2012)
• Kilo retains the iron rights in the KGL Isiro permits, which were previously in joint venture with Rio Tinto, which ended in April 2013. RPA estimates that Mt Asonga may contain between 750 to 1,500 Mt of mineralised material, grading 59% Fe to 65% Fe focused on a 19 km² area on Mt Asonga.² Furthermore, the deposit is characterized by minimal overburden and intercepts up to 127 m with an average overall seam thickness of 70 m. There are numerous other targets with massive and laminated types of hematite mineralization (see press release September 4, 2013)

In addition, Kilo has a minority interest in the Hajigak iron ore project in Afghanistan.

² Potential quantity and grade is conceptual in nature as there has been insufficient exploration to define a mineral resource.

DISCLAIMER

This news release may contain forward looking statements concerning future operations of Kilo Goldmines Ltd. All forward looking statements concerning Kilo's future plans and operations, including management's assessment Kilo's project expectations or beliefs may be subject to certain assumptions, risks and uncertainties beyond Kilo's control. Investors are cautioned that any such statements are not guarantees of future performance and that actual performance and exploration and financial results may differ materially from any estimates or projections.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view Figures 1, 2, 3 and 4 please click on the following link: http://media3.marketwire.com/docs/KGL0130.pdf