Kilo Goldmines Announces Financings to Raise Up to C$10 Million

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

TORONTO, ONTARIO -- (Marketwire - Oct. 18, 2011) - Kilo Goldmines Ltd. (TSX VENTURE: KGL) (FRANKFURT: 02K) (“Kilo“ or the “Company“) is pleased to announce that it has engaged Clarus Securities Inc. to proceed with a private placement offering to raise gross proceeds of up to C$5,000,000 through the issuance of common shares on a “best efforts basis“ at a price of C$0.20 per common share (the “Brokered Offering“). The Company also announces a non-brokered private placement offering under the same terms to raise gross proceeds of up to C$5,000,000 (the “Non Brokered Offering“) (the Brokered Offering and Non Brokered Offering are collectively referred to as the “Offerings“). It is anticipated that insiders of the Company will subscribe for up to C$4,000,000 of the Non Brokered Offering. The number of common shares offered under both the Brokered Offering and Non Brokered Offering may be increased to meet over-subscriptions.

Proceeds from the Offerings will be used to fund exploration and for general corporate purposes.

The Offerings are scheduled to close on or about November 3, 2011 and are subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. The securities to be issued under the Offerings will be offered in all the provinces of Canada by way of private placement exemptions, and offshore, including in the United Kingdom, pursuant to applicable exemptions and in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act“).

The securities referred to in this press release have not been and will not be registered under the U.S. Securities Act or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, sale or solicitation would be unlawful. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the issuer of the securities and its management, as well as financial statements.


About Kilo

Kilo Goldmines Ltd. is a Canadian gold exploration company operating in the Democratic Republic of Congo (DRC). The Company has over 7,000 square km of favourable Archaean Kabalian greenstone in the Kilo-Moto area in north-eastern DRC. Kilo recently announced an inferred resource on the Adumbi Deposit of the Somituri Project of which the Company owns a 71.25% interest in the DRC entity that holds the Somituri Project Exploitation Permits.

The Company is also working on a number of other prospective areas which contain historical workings in the same region. It also has a joint venture with Rio Tinto Ltd. on potential iron ore licences in north-eastern DRC.


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.



Contact Information

Kilo Goldmines Ltd.
Alex van Hoeken
President and CEO
+1-416-360-3415
avh@kilogoldmines.com

KILO GOLDMINES LTD.
Suite 1200, 141 Adelaide Street West
Toronto, Ontario M5H 3L5
Website: www.kilogoldmines.com
Facebook: www.kilogoldmines.com/facebook
Twitter: www.twitter.com/kilogoldmines