Kinbauri Gold Corp.: Update on Glen Eagle Transaction and Legal Action

Kinbauri Gold Corp. ("Kinbauri") (TSX VENTURE:KNB) (FRANKFURT:3KG.DE) announces
that, after a review of materials provided by Glen Eagle Resources Inc. ("Glen
Eagle") (TSX VENTURE:GER) with respect to the funding commitments relating to
the proposed transaction between Glen Eagle and Kinbauri, the directors of
Kinbauri advised Glen Eagle that they did not receive sufficient comfort that
the new funding arrangements necessary to complete the transaction were
available. After carefully considering the information provided by Glen Eagle in
the context of the takeover bid by Orvana Minerals Inc. ("Orvana") and the
application by Jaguar Financial Corporation ("Jaguar") Kinbauri advised Glen
Eagle that the agreement between the parties had come to an end.


Glen Eagle has advised that it does not accept Kinbauri's position and is
considering its options. As a result, Kinbauri has decided to allow the matter
to be determined in a court of law at the same time as the application brought
by Jaguar scheduled to be heard on June 17, 2009.


The special committee of independent directors (the "Special Committee")
continues to evaluate the takeover bid commenced by Orvana Minerals Corp.,
consider other alternatives and will make a recommendation to the board of
directors in the near future.  Kinbauri expects to mail its directors' circular
containing its recommendation next week.


Jaguar has amended its application commenced in the Ontario Superior Court of
Justice against Kinbauri, its wholly-owned subsidiary, Kinbauri Espana S.L.,
("Espana"), the directors of Kinbauri, Glen Eagle and Paradise Peaks Holdings to
request that: the board of directors of Kinbauri be removed and a new board be
appointed; and an investigation be commenced to determine the ultimate source
and terms of funding to be provided for the proposed transaction with Glen
Eagle.


In the interim, Kinbauri encourages shareholders not to take any action with
respect to the offer.


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