Kinbauri Gold Corp.: Kinbauri Gold Provides Update on Court Hearing and Update on Review of Strategic Alternatives

Published in Stocks and Investing on Tuesday, June 30th 2009 at 6:35 GMT, Last Modified on 2009-06-30 06:35:42 by Market Wire
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OTTAWA, ONTARIO--(Marketwire - June 30, 2009) - Kinbauri Gold Corp. ("Kinbauri") (TSX VENTURE:KNB)(FRANKFURT:3KG.DE) advises that its application to have Glen Eagle Resources Inc. ("Glen Eagle") claims summarily dismissed was not approved so the matters will now proceed to arbitration . Kinbauri intends to assert a counter claim against Glen Eagle for substantial damages in the arbitration as well as asking for a dismissal of all of Glen Eagle's claims. Kinbauri expects the reasons of the Court on its application for summary dismissal to be released on Thursday July 2, 2009 and intends to provide further information at that time."

The Special Committee (the "Special Committee") of the Board of Directors of Kinbauri is continuing to conduct a value maximization process that is designed to facilitate the proposal of superior alternatives from the unsolicited offer made by Orvana Minerals Corporation ("Orvana") from qualified third parties. A number of parties have entered into confidentiality and standstill agreements with Kinbauri and are conducting due diligence that includes reviewing materials in an electronic data room and site visits.

On June 9, 2009, Kinbauri's Board of Directors unanimously recommended that Kinbauri shareholders REJECT the unsolicited offer to purchase all of the outstanding Kinbauri shares made by Orvana for the reasons as set out in the directors' circular of Kinbauri dated June 9, 2009.

Shareholders do not have to take any action on the Orvana offer and the Kinbauri Board urges you to reject it.

For assistance in withdrawing any shares already tendered, or other questions, please contact Laurel Hill Advisory Group, the Information Agent retained by Kinbauri in connection with the Orvana Offer, toll free at 1-888-812-9184 from anywhere in Canada or the United States and collect at 416-637-4661 from outside North America.

About Kinbauri

Kinbauri (TSX VENTURE:KNB) is a 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 in 2010. It currently has 59,348,051 common shares issued and outstanding. For more information visit [ www.kinbaurimaximized.com ] or [ www.kinbauri-gold.com ].

THIS PRESS RELEASE WAS PREPARED BY KINBAURI GOLD CORP. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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.