Kilo Goldmines and Randgold Resources Sign Joint Venture Agreement

Kilo Goldmines Ltd. ("Kilo" or "KGL" or the "Company") (TSX
VENTURE:KGL)(FRANKFURT:02K) Kilo Goldmines Ltd ("Kilo or KGL") and Randgold
Resources plc ("RRL") are pleased to announce that they have signed a definitive
agreement for a Joint Venture ("JV") on Kilo's KWR Iron Sprl Exploration
licences in the Democratic Republic of Congo ("DRC").


Randgold will undertake to finance all exploration on Kilo's KWR licences for
which they will obtain incremental ownership based on milestone events. Randgold
has up to five years to establish a pre feasibility study and a joint venture
committee will manage the exploration programmes which will rely on knowledge
and expertise from both companies. 


The terms of the agreement are:



--  RRL to earn 51% for the completion of a pre feasibility study ("PFS") 
--  KGL right to maintain 49% post PFS 
--  RRL to earn 65% for the completion of a bankable feasibility study
    ("BFS") should KGL not contribute post PFS 
--  KGL equity to convert to 1.5% royalty if diluted to 10% or less 
--  KGL keeps the exploration rights to all minerals not associated with
    gold 
--  PFS to be established within 5 years 
--  BFS to be established within 1 year after PFS, or such longer time to be
    agreed by the parties 



Alex Van Hoeken, President & CEO of Kilo Goldmines commented: "Kilo Goldmines is
very pleased to have entered into a partnership with a FTSE 100 company having
the reputation of aggressively finding and developing profitable gold resources.
Kilo Goldmines will benefit from Randgold's expertise and shared costs to help
advance its other main Somituri project as well."


Mark Bristow, CEO of Randgold Resources commented: "The Kilo Goldmines portfolio
is highly prospective and constitutes an excellent target for continued growth
for Randgold. The geology is akin to the large world class deposits in Tanzania
and recently at Kibali, and we are committed to search for similar discoveries.
Signing this agreement is a first step in establishing a long term collaboration
with Kilo Goldmines. With Kilo Goldmines' established exploration infrastructure
in the area, our teams can get a running start on their exploration programmes."


Twelve Permis d'Exploration ("PR"), Exploration Licences attributed to the
RRL/KGL JV namely PR 2227, PR 2226, PR 2229, PR 2230, PR 2231, PR2285, PR2286,
PR 2287, PR2288, PR 2289, PR 2290, and PR 2291, totaling 2 056.76 km2, are
illustrated on Figures 1 and 2 on Kilo's website. These licences are currently
in a joint venture with Rio Tinto for iron only, whilst KGL and its partner Suez
retain all non-iron mineral rights. The Northern portion of the Archaean Ngayu
Greenstone Belt and the entire Isiro Greenstone Belt, both set in a granitic
basement, are covered by the twelve PRs. The licenses have numerous gold
occurrences which were explored during the colonial-era, and are current active
artisanal sites. 


Examination of available data to date has enabled preliminary interpretation of
major structural features permissive for gold mineralization, such as local and
regional folding, thrusting, faulting and displacements, and structural
directional changes. Many of such features led to the major Randgold discoveries
which have become operating mines in its portfolio. 


In addition, Kilo is also pleased to announce that it has reached an agreement
to buy out its 25% minority partner, Suez Holdings Ltd, which has a free carried
interest through production for non-iron commodities in the KWR licences under
the current Kilo - Suez JV agreement. The transaction involves an aggregate of
635 000 USD in cash and 356 000 shares over a 6 year period with initial no cash
down, and is subject to review by the TSXV. The buyout is simultaneously for
Suez' gold interest in the KWR licences, as well as Suez interest in a Kilo DRC
subsidiary, KGL ERW Sprl, which holds permit PR 2274 illustrated on Figures 1
and 3 on Kilo's website, and allows KGL, once the consideration has been paid,
to retain Randgold as its sole partner. 


Kilo also reports that Rio Tinto is withdrawing from its joint venture for iron
ore on the KWR Licences. Kilo and Rio Tinto are inventorising all data and joint
venture assets to be handed over to Kilo, and discussions about the withdrawal
process are in progress. 


About Kilo 

Kilo Goldmines Ltd. is a Canadian gold exploration company that is listed on the
TSX Venture Exchange under the symbol 'KGL' and on the Frankfurt Exchange under
the symbol '02K'. The Company holds about 3,000 square kilometres of favourable
Archaean Kibalian greenstone in the Kilo-Moto area in the Democratic Republic of
the Congo. Kilo's principal focus is to advance its projects from exploration
through feasibility to project development and ultimately to full production in
a socially and environmentally responsible manner. The Company owns a 71.25%
interest in the DRC entity that holds the Somituri Project Exploitation Permits.


About Suez 

Suez is a private Jersey registered company, and the original holder of the PRs,
which were vended into a new entity, ERW, on the basis of share capital
ownership, namely Kilo 75% and vendors (Suez) 25%. ERW PRs optioned by Rio Tinto
were transferred to KWR whereas PRs not subject to the Rio Tinto option remained
in ERW. 


About Randgold 

Randgold Resources is a gold mining and exploration company operating in the
prospective gold belts of west and central Africa. The company's strategy is to
create real value for all its stakeholders through the discovery of
multi-million ounce gold deposits and their development into profitable mines. 


Major discoveries to date include the 7.5 million ounce Morila deposit in
southern Mali, the 7 million ounce Yalea deposit and the 5.5 million ounce
Gounkoto deposit, both in western Mali, the 4 million ounce Tongon deposit in
the Cote d'Ivoire and the 3 million ounce Massawa deposit in eastern Senegal. 


Today Randgold operates four gold mines: Morila, Loulo, and Gounkoto in Mali and
Tongon in Cote d'Ivoire. A fifth mine, Kibali in the Democratic Republic of
Congo, is currently being developled and first gold is scheduled for the end of
2013. The Massawa project in Senegal is at feasibility stage and exploration
programmes are underway in Burkina Faso, Cote d'Ivoire, DRC, Mali, and Senegal. 


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.


Figure 1. Map illustrating the Kilo Exploration Licences optioned to Randgold,
the Kilo ERW Exploration Licence, other Kilo Licences, Adumbi gold deposit and
geology: http://media3.marketwire.com/docs/KILOFigure1.pdf


Figure 2. Map illustrating the Kilo Licences optioned by Randgold, geology and
gold occurrences: http://media3.marketwire.com/docs/KILOFigure2.pdf


Figure 3. Map illustrating Kilo's ERW Exploration Licence and geology:
http://media3.marketwire.com/docs/KILOFigure3.pdf


FOR FURTHER INFORMATION PLEASE CONTACT: 
Kilo Goldmines Ltd.
Alex Van Hoeken
President and CEO
+1 (416) 360 3415
info@kilogoldmines.com
www.kilogoldmines.com
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