Press Release

January 5, 2011 9:28 ET

Kilo Drilling Intersects 2.38 g/t Gold Over 89.45m on the Adumbi Prospect, Somituri, DRC

TORONTO, ONTARIO--(Marketwire - Jan. 5, 2011) - Kilo Goldmines Ltd. ("Kilo" or the "Company") (TSX VENTURE:KGL)(FRANKFURT:02K) is pleased to announce results from diamond drill hole seventeen on the Company's Somituri Project in north-eastern Democratic Republic of Congo ("DRC").

Somituri - Adumbi Prospect Drilling

Diamond drill-hole SADD0017 was collared on drill section 19835E to intersect the main zone gold bearing structure vertically below the previously reported gold bearing zone intersected in drill hole SADD0004 on drill section 19850E (see July 9, 2010 press release). Drill hole SADD0017 was drilled on a magnetic azimuth of 220 degrees at an inclination of -50 degrees to 379.70 metres; the gold intersections are summarized below and they are illustrated on Figure 1.

Adumbi Prospect Drill Section 19835E
Drill Hole From (m) To (m) Interval (m) Gold g/t
SADD0017 165.20 166.30 1.10 6.89
  172.30 174.15 1.85 2.08
  208.30 210.70 2.40 0.41
  221.70 222.90 1.20 0.86
  245.15 334.60 89.45 2.38
    includes 266.70 304.00 37.30 4.44
    includes 283.70 304.00 20.30 6.03
The true widths are estimated to be 78% of the core length intervals.

Diamond drill hole SADD0017 intersected the hangingwall tuffaceous metasedimentary rocks, followed down-hole by the chemical metasedimentary rocks predominantly characterized by intervals of chert, chert banded with magnetite iron formation (BIF), as well as minor intervals of chert banded with black shale and several narrow intervals of black shale; quartz veins occur throughout the chemical metasedimentary rocks. The drill hole ended in the footwall tuffaceous metasedimentary rocks and greywacke.

As previously reported (see December 12, 2010 press release), and illustrated on Figure 1, diamond drill holes SADD0015 and SADD0016, also collared on section 19835E, intersected oxidized mineralization hosted in the sub-vertical chemical metasedimentary rocks predominantly characterized by intervals of chert, chert banded with haematite iron formation (BIF), as well as minor intervals of chert banded with black shale and several narrow intervals of black shale.

"The results of drill hole SADD0017 demonstrate excellent vertical continuation of the footwall or Main Zone gold mineralization over a substantial width," stated Peter Hooper, Executive Chairman of Kilo.

Summary of 2010 Exploration on the Somituri Project

Company geologists arrived at the isolated project site in the Ituri rainforest by helicopter in late January 2010, and four weeks later diamond drilling of the Adumbi Prospect commenced. By year- end 2010 Kilo had completed 9,745.6 metres of diamond drilling, 592.5 metres of adit sampling, 733.65 metres of trenching, and collected 1,233 soil samples (includes QC samples). The drill core has been logged and sampled; assay results for several thousand drill core, trench and soil samples are pending and will be released as they are received.

The company explored a 2,058 metre strike length of the Adumbi Prospect with 31 drill holes (including 6 re-drilled abandoned holes) on 17 section lines. Records from the colonial era, unverified by the Company, indicate that during the 1940s until its closure in 1958 the combined production from the Adumbi and Bagbaie (about 1 kilometre northwest of Adumbi) mines totaled about 200,000 ounces of gold; the gold exploited from the Adumbi mine was hosted in quartz vein ore that reportedly averaged 11 g/t gold.

In addition, five drill holes explored a 960 metre strike length of the past producing Kitenge gold mine, three holes tested a 1,360 metre strike length of the former Manzako gold mine and one drill hole targeted the Monde Arabe artisanal workings, which may be the northwest strike extension of the Kitenge gold bearing structure. According to historical records, unverified by the Company, the Kitenge and Manzako mines produced about 100,000 ounces of gold prior to about 1942.

Simultaneously with the exploration program a fully functional exploration camp with a number of permanent brick buildings was constructed on site during 2010. The Kilo bulldozer has built a 7 kilometre road from the Adumbi camp to Village 47 on the Niania to Isiro road; a State construction crew has advanced this road northerly to within 10 kilometres of Village 47. Kilo anticipates having road access to the Adumbi camp in early 2011.

QC and Analytical Procedures

Quality control of analytical results is monitored by the company with the insertion of commercial standards and blanks in every batch of samples submitted for analysis. For additional details the reader is referred to Kilo's previously announced (see May 4, 2010 press release) quality control and analytical procedures.

About Kilo

Kilo Goldmines Ltd. is a Canadian gold exploration company that is listed on the TSX Venture Exchange under the symbol 'KGL' and on the Frankfurt Exchange under the symbol '02K'. The Company has over 16,000 square kilometres of favourable Archaean Kabalian greenstone in the Kilo-Moto area in the Democratic Republic of the Congo. Kilo's principal focus is to advance its projects from exploration through feasibility to project development and ultimately to full production in a socially and environmentally responsible manner. The Company owns a 71.25% interest in the DRC entity that holds the Somituri Project Exploitation Permits.

Qualified Person

The drilling program disclosed in this press release was planned and supervised by the Company's geological consultant Stanley Robinson. Stanley Robinson, M.Sc., P.Geo is also the 'qualified person' (as that term is defined under National Instrument 43-101) of the Company who has reviewed the scientific and technical information contained in this release.

Figure 1, illustrating Diamond drill section 19835E on the Adumbi prospect, as well as the Adumbi mine can be viewed at: The reader is referred to the November 23, 2010 press release for a map illustrating the drill holes and drill section lines on the Adumbi Prospect.

This news release may contain forward looking statements concerning future operations of Kilo Goldmines Ltd. All forward looking statements concerning the Company's future plans and operations, including management's assessment of the Company's project expectations or beliefs may be subject to certain assumptions, risks and uncertainties beyond the Company'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.

For more information, please contact:

Kilo Goldmines Ltd.
Peter Hooper
Executive Chairman
[email protected]

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