KGL Resources Ltd V.KGL.H

Resolute Mining Limited RSG-ASX owns large stake in KiloGold

[goldmike]

TORONTO, Ontario, October 27, 2016 – Kilo Goldmines Ltd. (“Kilo” or the “Company”) (TSX VENTURE: KGL) has been advised that Resolute (Treasury) Pty Ltd. (“Resolute”), a wholly-owned subsidiary of Resolute Mining Limited,(RSG-ASX) has acquired all common shares of Kilo previously owned by Osisko Mining Inc. (“Osisko”). Based on public filings, Resolute now owns 46,568,000 common shares, representing approximately 27.4% of the outstanding common shares, and warrants to acquire a further 24,700,000 common shares. Assuming the exercise of all warrants by Resolute, Resolute would own approximately 36.6% of the outstanding common shares of Kilo on a partially diluted basis. Based on public filings, after giving effect to the sale, Osisko beneficially owns or controls, directly or indirectly, warrants to acquire 21,100,000 common shares of Kilo. Assuming the exercise of all warrants by Osisko, Osisko would own or control approximately 11.1% of the outstanding common shares of Kilo on a partially diluted basis.

In announcing the transaction securing a 27.4% interest in Kilo, Mr John Welborn, Managing Director and CEO of Resolute, commented as follows:

“We are pleased to have increased our stake in Kilo at this exciting time. Kilo is about to commence drilling at a range of untested targets in close proximity to their Adumbi prospect in the Democratic Republic of Congo which forms part of the Somituri Project. Kilo has a large landholding in the Kilo-Moto region and, in addition to the Somituri Project, has a joint venture with Randgold on the Isiro Project. We see Resolute’s expertise and skill set being a strong match with the ideology and strategy of Kilo’s management and look forward to future exploration results.”

“Resolute is seeking to build a portfolio of investments in well run, highly prospective, gold exploration assets in regions considered to hold potential for the development of future Resolute gold mines. Kilo is a perfect match for our criteria of existing asset quality, future prospectivity, relative value, and an experienced capable management team primarily focused on gold project exploration and development.”