Kinbauri Completes In-Fill Drill Program: Resource Up-Date Scheduled for Early October, New Discovery Contains Significant High

  Kinbauri Gold Corp. ("Kinbauri") (TSX VENTURE: KNB)(FRANKFURT: 3KG.DE) is pleased to announce that its in-fill drill program (145 holes) was completed on August 16th; a total of 22,275 m were drilled. Final assay results from 11 holes are pending with receipt expected in early September.

Resource at El Valle and Carles

Completion of the in-fill drill program will allow delivery of a new N.I. 43-101 technical report (resource up-date) by mid-October. In addition to the expected up-grades in resource classification due to the drill hole spacing, it is anticipated that there will be a significant increase in the resources for five of the twelve zones at El Valle, notably Area 107 ("A107"), Black Skarn ("BSN"), Monica, Charnela and San Martin. These five zones are expected to be included in the early mine plan upon recommencement of operations at El Valle. A January 16th, 2008 N.I. 43-101 compliant technical report (the "Report") estimated that four of these zones contained the following resources:

- Measured and indicated: 545,000 ounces gold and 71.5 million pounds copper (3,220,000t at 5.26g Au/t and 3,138,000t at 1.04% Cu).

- Inferred: 688,000 ounces gold and 39.8 million pounds copper (3,143.000t at 6.81g Au/t and 3,038,000t at 0.6% Cu).

The Report also estimated resources for all the zones at El Valle and Carles:

- Measured and Indicated: 725,200 ounces gold and 86.9 million pounds copper (4,159,000 t at 5.4g Au/t and approximately 0.97% Cu).

- Inferred: 964,000 ounces gold and 50.0 million pounds copper (3,459,000 t at 8.67g Au/t and approximately 0.56% Cu).

New Discovery: San Martin Zone

A substantial increase in resources at El Valle is expected due to the newly discovered San Martin Zone, the continuation of BSN to the west and enhanced gold and copper grades where the Charnela Zone intersects the BSN. The San Martin Zone, itself, is (i) characterized by wide Au-Cu intercepts, (ii) defined for some 200 m along strike and (iii) open to the east and south (See Schedule C). It is considered to be Kinbauri's most significant new discovery to date. Notable intercepts are as follows:

- 8g Au/t, 36g Ag/t and 2.1% Cu over 33.9m in 07KV1009R
- 10.5g Au/t, 63g Ag/t and 5.2% Cu over 17.1m in 08KV1108
- 7.2g Au/t, 18g Au/t and 1.0% Cu over 21.1m and
  8.2g Au/t, 18g Ag/t and 1.2% Cu over 15.2m in 08KV1117
- 5.8g Au/t, 25g Ag/t and 2.0% Cu over 26.7m and
  4.9g Au/t, 14g Ag/t and 0.6% Cu over 8.8m in 08KV1159

Recent Drill Results

Kinbauri is in receipt of results from a further 13 in-fill diamond drill holes, mainly targeting BSN. Received assays are summarized as follows:

                                                                     Zone/
HOLE (DDH)    From     To    Interval  %      Au     Ag    Cu       Section
   (1)         (m)     (m)     (m)    (2)   (g/t)  (g/t)   (%)        (3)
----------------------------------------------------------------------------
08KV1159     208.70  235.35   26.65   25    5.75   25.4   1.95      BSN/12.5
Including    225.00  235.35    9.45    "   10.19   42.5   2.92
08KV1159     250.50  260.30    8.80    "    4.92   13.6   0.63
Including    250.50  252.10    1.60    "   22.80   47.7   1.64
----------------------------------------------------------------------------
08KV1157     296.00  299.15    3.15   96    8.60    2.1   0.49       A107/10
Including    297.50  299.15    1.65    "   15.00    3.1   0.87
----------------------------------------------------------------------------
08KV1156     111.40  112.70    1.30   19    4.36   11.3   0.31        BSN/13
08KV1156     239.90  251.50   11.60    "    1.73   14.3   1.25
Including    247.80  251.50    3.70    "    2.70     27   1.97
----------------------------------------------------------------------------
08KV1154      77.60   79.80    2.20   28    2.55    6.6   0.30        BSN/13
08KV1154     107.40  110.55    3.15    "    2.33   11.1   0.24
Including    107.40  109.10    1.70    "    3.48   12.0   0.30
08KV1154     128.20  129.30    1.10    "    5.27   16.0   0.37
08KV1154     154.85  160.80    5.95    "    3.08   18.6   0.01
Including 1  154.85  156.35    1.50    "    4.92   37.3   0.01
Including 2  159.35  160.80    1.45         4.82    6.0   0.01
----------------------------------------------------------------------------
08KV1153      58.75   80.95   22.20   41    2.03   10.7   0.61        BSN/10
Including 1   60.05   62.75    2.70    "    3.09   24.1   1.21
Including 2   68.35   71.55    3.20    "    3.41   14.6   0.95
----------------------------------------------------------------------------
08KV1152      35.00   68.05   33.05   70    1.31   10.0   0.59   BSN/1175: 5
Including 1.1 35.00   40.65    5.65    "    2.06   19.3   1.08
Including 1.2 36.10   37.30    1.20    "    7.09   45.1   2.97
Including 2   47.30   51.90    4.60    "    1.81   11.7   0.88
Including 3   61.40   63.90    2.50    "    1.60   12.7   0.94
----------------------------------------------------------------------------
08KV1149      85.90  100.60   14.70   98    2.49    4.1   0.02      BSN /900
Including 1   90.00   93.15    3.15    "    5.05    2.3   0.04
Including 2   91.30   93.15    1.85    "    6.93    2.5   0.05
Including 3   96.90   98.80    1.90         4.15   18.7   0.02
----------------------------------------------------------------------------
08KV1143      35.60   44.75    9.15   95    1.50    9.2   0.37   BSN/1150: 4
Including     35.60   37.55    1.95         3.18   19.0   0.58
08KV1143      56.35   57.60    1.25    "     6.4    3.0   0.09
08KV1143      63.90   68.40    4.50    "    2.64    9.5   0.47
----------------------------------------------------------------------------
08KV1142      96.50  101.00    4.50   95    4.79    4.6   0.07       BSN/925
Including     99.50  101.00    1.50    "   11.45    6.7   0.04
----------------------------------------------------------------------------
08KV1141      65.65   73.90    8.25   85    2.94   10.6   0.75   BSN/1150: 4
Including     71.10   72.75    1.65    "    6.00   29.0   2.14
----------------------------------------------------------------------------
08KV1138     108.50  124.90   16.40   60    1.45    9.2   0.43       BSN/925
08KV1138     130.95  140.60    9.65    "    2.63    4.0   0.12
08KV1138     212.35  221.10    8.75    "    1.06    9.7   0.67
Including    212.35  214.00    1.65    "    2.08   15.4   1.06
08KV1138     255.95  262.30    6.35    "    2.14   18.6   0.74
Including    260.95   262.3    1.35    "    7.31   65.1   1.40
----------------------------------------------------------------------------
08KV1137      42.15   56.30   14.15   77    1.90   11.5   0.53 BSN/1125: 4.5
08KV1137      58.90   62.50    3.60    "    4.83   24.0   1.06
Including      60.7    62.5     1.8    "    5.24   21.0   1.33
----------------------------------------------------------------------------
08KV1134     192.90  194.50    1.60   95    5.80    2.0   0.01        A107/9
08KV1134     216.90  218.30    1.40    "    3.36    2.0   0.17
----------------------------------------------------------------------------
(1) See Schedules A, B and C for Location.
(2) Percentage estimate of True Thicknesses.
(3) BSN - Black Skarn North, A107.

The underground drill program at El Valle and Carles is being supervised by Mr. Santiago Gonzalez-Nistal, Kinbauri Espana's senior geologist, with quality control being provided by Dr. C. F. Gleeson, P. Eng., Kinbauri's Vice-President of Exploration: both are qualified persons as defined by N.I. 43-101. Details of Kinbauri's Assay and Quality Assurance Programs are reported in a press release of February 27th, 2008.

Future Drilling and Other Corporate

Exploration drilling will begin in September to trace continuity of the San Martin Zone. A new exploration adit is planned northwards from Boinas East to establish drill stations for this exploration work. Numerous other zones are targeted for drilling at El Valle and Carles before the end of 2008.

With modeling and coincidental new resource classifications underway, Scott Wilson Roscoe Postle Associates have indicated they can deliver a Scoping Study in the last quarter of 2008. Kinbauri is presently funded through January 2009 to continue its development and exploration programs. Upon final registration of certain documents in Spain in September, some funds, presently being held in escrow by Anglo Pacific Group, will be released.

This press release was prepared by Drs V. N. Rampton, P. Eng and C. F. Gleeson, P. Eng. in their capacity as qualified persons. Dr. Rampton will be recording "Beyond the Press Release" web-cast concerning assay results and Kinbauri's near-term plans on its official Investor Relations Site at http://www.agoracom.com/IR/kinbauri on or after August 26th, 2008.

About Kinbauri

Kinbauri is a TSXV - Tier 1 Mineral Exploration Company focused on the development of mineral properties, primarily precious metal prospects in northwestern Spain, Nevada and Canada. Its immediate focus is to expand and upgrade resources to reserves at the El Valle property in Asturias, Spain in order to start operations at the mine and existing mill complex there in 2010. It currently has 48,752,695 common shares issued and outstanding.

THIS PRESS RELEASE WAS PREPARED BY KINBAURI GOLD CORP. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This press release contains certain forward-looking statements, which are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected. Kinbauri undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

VISIT:

Kinbauri Gold's Hub at http://www.agoracom.com/IR/kinbauri where investors can post questions and receive answers or review questions and answers already posted by other investors.

Kinbauri Web-Site: www.kinbauri-gold.com

Schedules are available at the following address: http://media3.marketwire.com/docs/schedABC.pdf

Contacts: North America Darrell Munro, BB.A, LL.B Manager Corporate Communications 613-836-0198 [e-mail] Dr. Vern Rampton, P. Eng. President 613-836-2594 [e-mail] [e-mail] Dr. Chris Gleeson, P. Eng. Vice-President Exploration 613-652-4594 [e-mail] Europe INVESTEL Ruediger (Rudy) Hnyk, CEO Investor Relations [e-mail]