Kimberly Gold Takes Initial Steps in Renewing Production at Rescue Gold Mine, Idaho.

COEUR D'ALENE, Idaho -- Kimberly Gold Mines (OTC:KMGM) announced today it has made significant progress in its plans to renew production at the Rescue Gold Mine in Warren, Idaho.

The Company reports the following key accomplishments:

--Payment to the United States Forest Service (USFS) of approximately $50,000 for the Reclamation Bond required to reinstate mine operations. The bond permits Kimberly to initiate exploration, development and production operations at the Rescue Gold Mine.

--Clean up efforts initiated to raise the condition of the property to Kimberly operating standards. These efforts jointly involve the USFS, RCRA, and IDEQ to insure compliance with regulatory agencies and promote positive future relationships with these agencies. Northwest Technologies, an agency-recommended firm headquartered in Boise, has been contracted to perform the majority share of this planned scope of work.

--Appointment of a mining contractor to perform necessary maintenance on the Rescue Mine Portal, as well as to clean up and secure the Main Ramp accessing the mine underground. This work is scheduled to begin Sept. 1, 2004.

--Payment of $23,500 as half down payment for modifications and repairs

to the Rescue Mill Building. This scope of work is intended to improve operating efficiencies and improve certain safety aspects of the mill building. Mockwitz Construction, a local firm in McCall, is mobilizing and delivering materials to site over the next few weeks, with work scheduled to begin Sept. 30, 2004, and finish on or before Oct. 15, 2004.

"The efforts undertaken to date demonstrate Kimberly's commitment and determination to achieve our goal of bringing the Rescue operation back into production by the summer of next year," said Kimberly President Kevin Shiell.

In July, the Company announced its purchase of the Rescue assets, which include the mine infrastructure, a 120-ton-per-day mill and a full complement of equipment such as power generators, air compressors, pneumatic drills, load-haul-dump (LHD) machines, a haulage fleet, and a maintenance and equipment shop. The Rescue complex is only 30 miles southeast of the Company-owned Kimberly Gold Mine.

Kimberly Gold Mines is an aggressive gold exploration company focused on the historic mining districts of the Pacific Northwest. Active Kimberly projects include the Kimberly and Rescue Gold Mines in central Idaho, the Matthews and Compton properties along the Wenatchee Gold Belt of central Washington, and the Empire Creek Project on 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.

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