exploring past gold producers

AFRICA RESOURCESAFRICA RESOURCESINVESTMENT CONGRESS

Exploring past gold producers Lance Hooper – Kilo Goldmines

IRONMONGERS’ HALL, CITY OF LONDON ● TUESDAY-WEDNESDAY, 14-15 JUN 2011www.ObjectiveCapitalConferences.com

Investor PresentationJ 2011

TSX Venture: KGL

June 2011

Frankfurt: 02K

Disclaimer

The particulars contained herein were obtained from sources which we believe reliable but are not guaranteed by us and may be incomplete. The opinions expressed are based upon our analysis and interpretation and are not to be construed as a solicitation or offer to buy our analysis and interpretation and are not to be construed as a solicitation or offer to buyor sell the securities mentioned herein.

This presentation contains confidential information and by viewing this presentation, the viewer agrees that all the information contained herein will be used by the reader solely to determine his/her interest in Kilo Goldmines Ltd., and that such information shall be t i d l i l f th b fit f Kil G ld i Ltd Th i th t h / h illretained exclusively for the benefit of Kilo Goldmines Ltd. The viewer agrees that he/she will

not, without the express consent of Kilo Goldmines Ltd., make use of, disseminate or in any way disclose any of the confidential information to any person, firm or business, except to the extent necessary for negotiations, discussions, and consultations with personnel or authorized representatives of the reader for the purpose of determining such interests in Kil G ld i LtdKilo Goldmines Ltd.

No securities commission or other similar regulatory authority has reviewed or passed on the merits of this presentation and any representation of the contrary is an offence. This presentation is not, and under no circumstances is to be interpreted as, a prospectus, public information solicitation or advertisement for the sale or trade of securitiesinformation, solicitation or advertisement for the sale or trade of securities.

3TSX Venture: KGL Frankfurt: 02K

Senior Management

Klaus Eckhof, President and CEO, Director

G l i t ith 20 i d l i i l

g

Geologist with 20+ years experience developing mineral deposits throughout Africa, South America, Asia, Australia and Russia. Founded Spinifex Gold, Lafayette Mining, and Moto (20+ M oz Au in DRC acquired by Randgold in 2009)Moto (20+ M oz Au in DRC acquired by Randgold in 2009).

Peter Hooper, Executive Chairman , Director

B.Sc., Mining Engineering with 40+ years experience including gold exploration and production in South Africa, Ghana, Canada, Australia, and China. Extensive global relations and Board experience; close corporate ties in 20+ countries.


Management and Board

Stanley RobinsonGeologist

A Canadian geologist, Stanley Robinson is a graduate of Sir George Williams and the University ofOttawa, with over thirty years exploration and management experience in Canada and Africa,including six years with International Gold and Ashanti Goldfields in Burkina Faso and Ghana. For

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Lakota Resources Inc., Mr. Robinson was responsible for organizing and managing the Company'sexploration projects and joint ventures in Tanzania. In Burkina Faso Mr. Robinson delineated aresource of 1.3 million ounces of gold on the Youga project; Youga is now in commercial production.

Philip Gibbs A Chartered Management Accountant with extensive financial management experience in largePhilip GibbsCFO

g g p gcorporate environments in the manufacturing and retail sectors, both in North America and in Africa.Philip's multi‐disciplinary exposure includes areas of Market Research, Logistics and IT Systemsimplementations, providing a broad base of business acumen suited to growing businesses.

Jacques Bouchard A partner at Heenan Blaikie, Jacques Bouchard is the firm’s Director of International Business. He actsJacques BouchardDirector

A partner at Heenan Blaikie, Jacques Bouchard is the firm s Director of International Business. He actsas advisor for several governments, public corporations, multilateral development banks and majorcompanies. Over the past few years, he has been lead counsel for many international mandates onbehalf of clients from various countries.

JimMustard Jim Mustard formerly Senior Mining Analyst Vice President at Haywood Securities Inc is aJim MustardDirector

Jim Mustard, formerly Senior Mining Analyst, Vice President, at Haywood Securities Inc., is aprofessional geologist and registered professional engineer. With over 25 years of industry experiencewith major Canadian, international mining companies, and the Government of Canada, Jim’s interestfocuses on the junior exploration sector to identify early stage opportunities.


Shareholders and Fundamentals

Common Shares 164.2 MTop 14 Institutions (~60% of all shares) *

Options 16.6 M

Warrants 61.0 M

p ( )

Pinetree 2 5%

Sequoia , 1.5%

Picton Mahoney , 1.5%

JVAR Capital, 1.2% Anson Group, 1.2% DPX Capital Inc, 1.2%

Insiders and Retail

Fully Diluted 241.8 M

Market Value $29.6M

Libra, 12.3%

RMB 3 1%

RBC, 2.7%

Pinetree, 2.5%

54.9% (7 June 2011 @ $0.18/share)Altus Capital, 9.6%

Randgold, 4 9%

Sprott, 3.7%

RMB, 3.1%

Galena Asset Mgmt, 7.7%

Mackenzie Financial, 6.1%

4.9%


* Data obtained from a variety of sources including Thomson and may not be representative of actual ownership.

Flanked by 2 Mega M oz Depositsy g p


NE DRC Exploration & Mining Activityp g y

Banro (Twangiza Project) ‐mine currently under construction; slated to begin production in Q4 2011.

Randgold (Kibali Project) ‐ aims to produce first gold in mid‐2013, six months earlier than planned.

Ashanti Goldfields (Mongbwalu Project) ‐mine construction to begin mid 2011 with production andconstruction to begin mid‐2011 with production and operations to commence in 2013

Kilo Goldmines (Somituri Project) – initial inferred resource estimate of 2.0 MMoz Au released Q1 2011 for Adumbi Deposit; further exploration underway.

Mwana Africa (Zani‐Kodo) ‐ updated M+I resource estimate of 1.3 MMoz Au released in Q3 2010; further exploration underway. p y

Loncor ‐ no resource estimate to date; exploration ongoing.

Rio Tinto ‐ no resource estimate to date; iron ore exploration program underway. Key targets include joint


exploration program underway. Key targets include joint venture project with Kilo ERW properties (iron ore only).

Kilo Propertiesp


KGL Somituri Projectj

96948 Permis d’Exploitation (PE’s)

9692Covers ~606 km sq. of the Ngayu Archaean Greenstone Belt

Includes colonial era gold producers; Adumbi Kitenge

137138

140 9691

producers; Adumbi, Kitenge, Manzako & Maipunjie mines (PE 9691)

ADUMBI & AREA OVERVIEW

HISTORIC GOLD (ounces)

Isiro

9695

9693

HISTORIC GOLD (ounces) Production: 291,000

Resources (Adumbi): 930,000

0 1 2 3 4 km

Past Gold ProducerBagbaie

Adumbi

Manzako 9693Kitenge

Manzako

MaipinjiRef: Royal Museum for Central Africa Tervuren, Belgium (2007) Bugeco Intl (1988)Kilo has not verified the historical data,or re calculated the historical resources

NiaNia

Imbo River


or re-calculated the historical resources.The data is non NI43-101 compliant

KGL Somituri – Adumbi Deposit

Drill Holes & Section Lines

D ill R lDrill Results• 2.60 g/t Au over 136.80m (1 Feb 2011)• 2.38 g/t Au over 89.45m (5 Jan 2011)• 2.07 g/t Au over 58.8m (7 Dec 2010)• 5.01 g/t Au over 21.0m (23 Nov 2010)• 3 33 g/t Au over 11 45m (21 Oct 2010)


3.33 g/t Au over 11.45m (21 Oct 2010)• 2.01 g/t Au over 83.70m (19 Oct 2010)


Simplified Vertical Cross Sectionp



Resource Estimate

Cut off Tonnes above Grade above Tonnage above Million ounces Au

Graded Mineral Resource Estimates (Inferred)

Cut off(g/t Au)

Tonnes abovecut off

Grade abovecut off (g/t Au)

Tonnage above cut off

Million ounces Auabove cut off

0.50 46 307 259 1.37 80% 2.03

1 00 27 337 071 1 80 47% 1 581.00 27 337 071 1.80 47% 1.58

Estimated strike length of 1.2 km that appears to be h t d ithi i l li t i f 5 k

2010 Somituri Exploration

• 9,746 m diamond drilling • 734 m trenching • 592 m adit sampling• 1 233 soil samples

hosted within a regional lineament in excess of 5 km length along which artisanal gold mining activity occurs

The deposit remains open at depth 1,233 soil samples p p p

Open‐pittable, starts at surface, favourable/simple CIL metallurgy (30% oxide, potential heap leach)

13

Adumbi Hill(Looking from SE to NW)

Historic Workings (1927 to 1959)

Adumbi Hill(Looking from NW to SE)

KGL Somituri

2011 Exploration Planp


KGL Somituri

2011 Exploration Planp

TargetStrike Length

(km)Width(km)

Target Area(Square km)

g(km) (km) (Square km)

Adumbi North Prospect 0.5 0.50 0.25

Adumbi Gold Deposit – 2.03 Moz* 1.2 0.20 0.24p

Canal Prospect 1.5 0.10 0.15

Libreville – Monde Arabe Prospect 3.0 0.75 2.25

Vatican Prospect 1.0 0.75 0.75

Kitenge Prospect 1.2 0.80 0.96

Manzako prospect 2.5 0.50 1.25

Total 5.85


KGL Somituri

Kitenge and Manako Prospectsg p

MANZAKO PROSPECT• Strike length: +2.0km

• 1015 m drilled in 2010

• Recent results:9 92 / A 5 00 (J 2011)9.92 g/t Au over 5.00m (Jan 2011)

9.37 g/t Au over 4.70m (Oct 2011)

KITENGE PROSPECT• Strike length: +2.0km

• 1711m drilled in 2010

l• Recent results:21.4 g/t Au over 0.95m & 1.89 g/t Au over 8.15m (Jan 2011)


KGL ERW

Rio Tinto JV for Iron Ore

Rio Tinto Cash Title

Min. Work Expenditure

Payments Rio ‐> Kilo

Title Ownership

Phase 1 $ $51% RioPhase 1

(2009 – 2013)$15.75 M $7.25 M

51% Rio 49% Kilo

Phase 2 $50 M $10 M75% Rio

(2014 – 2018)$50 M $10 M

25% Kilo

Phase 3(2019 +)

‐ ‐ Kilo has the option to convert its’ equity for cash (2019 +)plus an NSR

Rio Tinto to manage and conduct all iron‐ore exploration activities.

Kilo / Rio JV Properties(KGL ERW)


Iron Ore JV – Early Indicationsy

Rio has identified a 10km2 surface outcrop

h % l h h Direct shipping ore; +64%, low phosphorus

Two rigs operational Q3, 2011; drill pad locations have already been scoped

Exploration to date: $7.6M

2011 Exploration budget: $4.5M

20

Investment Rationale

2.0 Million oz Au at 1.4g/t Au (0.5g/t Au cut‐off) initial inferred mineral resource estimate for the Adumbi Deposit Somituri Projectresource estimate for the Adumbi Deposit, Somituri Project

Adumbi Deposit starts at surface of a hill 130m above base level (i.e. open‐pittable; very low stripping ratio) and has favourable/simple CILopen pittable; very low stripping ratio) and has favourable/simple CIL metallurgy (30% oxide, potential heap leach)

Experienced management team with a history of success in Africa & DRC

Strategic partnership with Rio Tinto for iron ore assets

Established camp with good infrastructure

Blue sky potential


Next Stepsp Increase number of drills turning from 2 to 4;

20,000 additional metres of drilling and an additional 2M oz Au (inferred)additional 2M oz Au (inferred)

Drilling targets include:

• Adumbi Deposit – expand resource estimate by p p ydrilling along strike and at depth; turn inferred resources to measured (2 drills)

• Further drilling on nearby Kitenge and Manzakoprospects; and drill Vatican and Adumbi North

• Initial drilling on PE 9692 (NW Somituri)

Addi i l ll i l k i i Additional metallurgical test work is in progress and petrographic studies are planned

Mapping, trenching, soil sample of other Somituri

22

PE's to determine new potential drill targets

Contact Information

Web site: www.kilogoldmines.comEmail: [email protected]:Phone: +1+1‐‐416416‐‐867867‐‐80948094

Head Office:141 Adelaide Street WestSuite 1200Toronto, Ontario M5H 3L5


Appendix 1Gold Comparables


Public Trading Comparablesg p

Reserves and Resources Au Moz (Total + Historic)

12.0

14.0

16.0

DRC Peers

6.0

8.0

10.0

0.0

2.0

4.0


Public Trading Comparables

Enterprise Value ($US millions)

g p

600

700

800

DRC Peers

300

400

500

0

100

200


Capital Raised to Datep

LONCOR25‐Sep‐09 $ 2,250,000 $ 0.75 18‐Feb‐10 $ 10,208,125 $ 1.25 18‐Feb‐10 $ 5 000 000 $ 1 25 NEM

KILO01‐Feb‐06 $ 477,884 $ 0.10 01‐Nov‐06 $ 1,005,884 $ 0.30

Mar‐07 $ 3 009 000 $ 0 6018‐Feb‐10 $ 5,000,000 $ 1.25 NEM16‐Dec‐10 $ 3,900,000 $ 1.95 01‐Feb‐11 $ 19,975,000 $ 2.35 01‐Feb‐11 $ 3,995,000 $ 2.35 NEM

$ 45,328,125

Mar‐07 $ 3,009,000 $ 0.60 Mar‐08 $ 3,150,000 $ 1.50

24‐Sep‐09 $ 10,015,500 $ 0.45 05‐Aug‐10 $ 1,037,060 $ 0.20 25‐Aug‐10 $ 300,000 $ 0.20 07‐Oct‐10 $ 3,662,940 $ 0.20 $ 45,328,125 08‐Nov‐10 $ 4,748,000 $ 0.20 12‐May‐11 $ 10,000,000 $ 0.20

$ 37,406,268


Appendix 2Social Responsibility


KGL FoundationKGL Foundation

The main objectives of the Foundation are to help the communities j paround the KGL exploration sites improve their lives:

• by building the capacity of these communitiesby building the capacity of these communities to identify their needs and establish priorities;

• by collaborating with stakeholders and interest groups to design monitor and evaluategroups to design, monitor, and evaluate programs and strategies; and,

• by partnering with local, national, and international organizations already in the area.

29

KGL Foundation ProjectsKGL Foundation Projects

30

KGL Foundation ProjectsKGL Foundation Projects

31

Appendix 3Project Photos – Dec. 2010


exploring past gold producers

Business

africa

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production

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