HISTORY

Kinbauri was incorporated in 1984 and went public in 1985 on the Alberta Stock Exchange. A number of properties were acquired and explored in the Kirkland Lake area, southeastern New Brunswick and eastern Ontario between 1985 and 1990. In 2004, after a long litigation period Kinbauri was awarded over $4,000,000 CDN in damages against IAMGOLD (TSX-IMG)

Kinbauri was listed on the Canadian Venture Exchange (“CDNX”) on October 2, 2000, In 2005, Kinbauri optioned one property in Spain (Corcoesto), two in Nevada (Aztec and Kyla) and one in Quebec (Fiedmont) to add to its Kirkland Lake (Morrisette Creek) and Temiscamingue (Laniel) properties in Ontario and Quebec.

Spanish Gold Belt Properties

On October 30, 2006 Kinbauri signed a Letter of Intent to purchase assets lying within the Rio Narcea Gold Belt of northern Spain from Rio Narcea Gold Mines, Ltd. (“RNGM”). The assets included the El Valle Mine; the El Valle Plant (milling and smelting facility; the Carles Mine (15 km away) and two further properties within the Rio Narcea Gold Belt, namely Godán and La Brueva.

On January 16, 2007 Kinbauri signed an Option to Purchase Agreement after an experienced mining/exploration team completed extensive due diligence. The team was encouraged with their findings. In their opinion the most credible plan to rejuvenate operations was to expand resources and confirm reserves through drilling and investigating the feasibility of various mining methods for Area 107 and Black Skarn North. Other prospective areas/zones with significant resources were confirmed.

On February 16, 2007 Kinbauri exercised its option to purchase the assets for a total of US $5 million (the “Acquisition”). Kinbauri Espana, S.L. secured bridge financing and the Acquisition was closed on March 30, 2007. On April 25, 2007 Kinbauri completed the final tranche of a $16 million financing. The funds were used to complete the purchase and to pay for the intensive drilling program recommended by the due diligence team.

During the summer of 2007, Kinbauri ‘s drill program increased the Elle Valle/Carles resources by over 600,000 ounces to 1.8M ounces gold and 137M pounds of copper. The Company is now in the midst of a 23,000 metre infill drilling program to further define and upgrade resources.