KNB Kinbauri Gold Corp Com Npv

Kinbauri Gold Corp. ("Kinbauri") (TSX VENTURE:KNB)(FRANKFURT:3KG.DE) and Glen
Eagle Resources Inc. ("Glen Eagle") (TSX VENTURE:GER) would like to clarify the
legal structure for funds being advanced to Kinbauri Espana S.L. ("Espana") and
how anticipated profits will be repatriated to the respective parties. Based on
inquiries, we understand that the press releases issued by both parties may have
lacked clarity as to these issues. The following is an explanation to clarify
the structure of the transaction with Glen Eagle:


The investment by Glen Eagle in Espana is structured in part as share capital
and in part as loan. Similar to Glen Eagle, Kinbauri has also advanced
development funds to Espana in the form of share capital and loans. With this
structure, both Glen Eagle and Kinbauri can repatriate positive cash flow to
Canada from Kinbauri Espana with a minimum of withholding tax, maximizing
monetary benefits to Kinbauri, Glen Eagle and their shareholders.


All loans are non-recourse, meaning that neither Kinbauri nor Glen Eagle can
make a call on their loans or demand loan payments. The agreements restrict loan
repayments to positive cash flow generated from Espana's operations; further to
be authorized by the Board of Espana. Funds applied by Kinbauri and Glen Eagle
toward loan repayments should not be taxed in Canada. Cash or kind will only be
distributed to Glen Eagle and Kinbauri in the ratio of their participating
interest, whether it be by dividend or loan repayment; i.e. 55% Kinbauri: 45%
Glen Eagle or 50% Kinbauri: 50% Glen Eagle, or as the case may be.


About Kinbauri:

Kinbauri is a TSXV - Tier 1 Mineral Exploration Company focused on the
development of precious metal prospects in Spain, Nevada and Canada. Its
immediate focus is to begin operations at its El Valle/Carles property in
Asturias, northwestern Spain by 2010. It has 53,243,051 common shares issued and
outstanding.


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

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