Kimberly Gold Mines Signs Agreement on Camacho Gold/Silver Property in Zacatecas, Mexico.

COEUR D'ALENE, Idaho -- Kimberly Gold Mines (OTC:KMGM) has signed a lease agreement on the Camacho gold/silver property in Zacatecas state of Mexico. The property is located 6 kilometers west of the town of Estacion Camacho and covers some 1,120 hectares (one hectare is equal to 2.47 acres) or 2766.4 total acres.

Under the terms of this agreement Kimberly Gold paid US $50,000 for the first year. Starting with 13th month Kimberly Gold will pay a monthly advanced royalty of $2,000 for the next two years. The agreement provides for work commitment of $100,000 in the first year, $200,000 in the second year and $300,000 in the third year. After the end of the third year advanced monthly royalty will be continued or, if the property is in production, it will be subject to 2.5% NSR.

Initial focus of Kimberly Gold will be to evaluate the Leona area with geological mapping, geochemical sampling and drilling in an effort to develop a mineable gold resource. The Leona area is known to contain low grade gold and silver mineralization in narrow oxidized veins and fractures within siltstones and sandstones. In the mid 1990's FMC Gold (now Meridian Gold) drilled three holes, all showing significant gold mineralization. The longer term objective is to evaluate the entire mineral holdings including the northern part of the Camacho concession where most of historic mining was conducted with production of gold, silver and base metals.

A number of companies are active in the same general area in search of deposits similar to El Penasquito in Concepcion del Oro, some 90 kilometers east of Camacho. Most of the old mining was confined to veins and was small scale. Potential sediment hosted and skarn replacement deposits exist in the district including the Camacho holdings. Recent increases in metal prices brought renewed interest to the area.

Kevin Shiell stated, "The Leona area appears to have potential for developing a smaller scale open pit heap leach deposit, a project we believe to be within the means of a junior company such as Kimberly, and in line with our Company's stated mission. The large land position also offers considerable opportunity to explore and develop resources in other portions of the concession. We are very excited over the potential Camacho adds to Kimberly's portfolio."

Kimberly Gold Mines is an aggressive gold exploration company focused on the historic mining districts of the Pacific Northwest. Active Kimberly projects include the Rescue and Kimberly Gold Mines in central Idaho, the Matthews property in the Wenatchee Gold Belt of central Washington, and the Empire Creek Project in the Republic Graben of northeastern Washington. Kimberly stock trades on the OTC Market under the symbol "KMGM."

Certain statements contained in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on beliefs of management, as well as assumptions made by and information currently available to management. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results.