Kinbauri Provides Update on Strategic Alternatives

The board of directors of Kinbauri Gold Corp. ("Kinbauri") (TSX
VENTURE:KNB)(FRANKFURT:3KG.DE) advises that it is continuing to conduct a value
maximization process that is designed to facilitate the proposal of superior
alternatives from qualified third parties to the unsolicited offer (the "Offer")
made by Orvana Minerals Corporation ("Orvana") and has recently entered into
preliminary discussions with third parties as part of this process.


On August 3rd Orvana announced that it has extended its all-cash offer until
August 17th.


As Kinbauri continues to conduct its value maximization process, Kinbauri's
board remains unable to make a recommendation to shareholders at this time with
respect to the Offer.  The directors and officers of Kinbauri advise that they
have not tendered their shares to the Offer.


For questions, please contact Laurel Hill Advisory Group, the Information Agent
retained by Kinbauri in connection with the Orvana Offer, toll free at
1-888-812-9184 from anywhere in Canada or the United States and collect at
416-637-4661 from outside North America.


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.