Kilo Goldmines Ltd.: Cost Cutting Implementation

Kilo Goldmines Ltd. ("KGL" or the "Company") (TSX VENTURE:KGL) (FRANKFURT:02K)
is pleased to announce that it has implemented a series of cost cutting measures
to enhance cash retention.


Following the completion of the 2103 drilling program on August 6, the company
is implementing the following:




--  All senior staff and board members are taking a 20% salary and fee cut
    effective October 1st 
    
--  DRC staff has been reduced to care and maintenance level only 
    
--  Exploration support contractors (helicopter, sample laboratory
    operation, security) are being suspended or reduced according to current
    needs 
    
--  Jim Williams has resigned from the board effective 30 September 
    
--  The Randgold Joint Venture continues using some Kilo personnel &
    equipment 



The DRC staff has been reduced to a minimum level sufficient for keeping the
exploration camp in good standing, and security staff with the security
contactor has been reduced accordingly. Other contractors are being demobilized
until further notice. 


The Company is awaiting final assay results from the ALS laboratory in
Johannesburg for final interpretation. As announced on August 15, the Company
has retained Roscoe Postle Associates for the review of the data with the
objective of the establishment of a mineral resource on the Kitenge and Manzako
prospects, and this work is ongoing pending the final assay results. It is
expected that a report will be available during Q4. Furthermore, the Company is
conducting an extensive review of its data with specialist consultants such as
geochemistry experts to assess additional exploration targets on its properties.


The joint venture between Kilo Goldmines and Randgold Resources Limited is
proceeding as scheduled. Randgold is hiring some of the Company's equipment and
utilizing some of its personnel.


David Netherway, Chairman of KGL stated: "The company's portfolio is highly
prospective which warrants continued development, and the company is exercising
prudent financial management to ensure its long term success considering the
state of the mining industry in the short term. It is a tribute to our personnel
and their belief in the upside of the project that they have been exceptionally
receptive to these cost cutting measures to enhance the long term success of the
company. In particular I would like to thank Jim Williams for his service and
his voluntary resignation to assist in this cost-cutting exercise."


ABOUT KILO

Kilo Goldmines Ltd. (KGL) 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'. KGL holds exploitation and exploration licences covering
some"3000 km2 of favourable Archaen Kabalian Greenstones(the Ngayu belt) in the
northeast Democratic Republic of Congo an area historically referred to as the
Kilo-Moto region, a historic gold-producing region (11 Moz, Mineweb).

Incorporated within these licences is:



--  the Somituri Project (71.25% owned by KGL), comprising eight non-
    contiguous licences (606 km2) 
--  the KGL Isiro SARL Joint Venture (JV) with Randgold Resources Ltd (2056
    km2), for gold and associated minerals only. The JV is managed by
    Randgold and financed by it to a pre-feasibility (PFS). Upon completion
    of the PFS, KGL can participate in funding or Randgold will increase its
    participation to 65% by completing a Feasibility Study. Areas which may
    be deemed of no interest to Randgold will be returned to KGL. 



Additionally:



--  KGL has retained the rights to explore for and develop any iron ore
    resources(or other minerals) associated with the licences held by KGL
    Isiro SARL. These licences were in a JV with Rio Tinto who have now
    withdrawn. 
--  KGL has a minority interest in the Hajigak iron ore project in
    Afghanistan.



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 KGL'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.


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 FURTHER INFORMATION PLEASE CONTACT: 
Kilo Goldmines Ltd.
Alex van Hoeken
Chief Executive Officer (CEO) & President
[phone]
[e-mail]
www.kilogoldmines.com