Kimberly Gold Mines Purchases Rescue Mine and Mill; Initial Gold Production Projected for Summer 2005

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Business Editors COEUR D'ALENE, Idaho--(BUSINESS WIRE)--KMGM-- Kimberly Gold Mines (OTC:KMGM) announced today that it has purchased the Rescue Mine and Mill in central Idaho, 30 miles southeast of the Kimberly Gold Mine. The transaction includes all assets associated with the property, including the mining claims, milling facility, mining equipment, water and timber rights, and site permits. The Rescue Mill is a 120-ton-per-day facility located on the Rescue Mine site. The mill is anticipated to enable trial production efforts from both the Rescue Mine and the nearby Kimberly Mine, with the longer-term objective of supporting sustained operations from both locations. Pending modifications to existing permits and modest project funding, limited gold production is expected to commence from the Rescue Mine in summer 2005. Kimberly President Kevin Shiell stated, "The Rescue acquisition represents a significant advancement toward our stated objective of becoming a gold producer. We are confident that the milling facility will prove invaluable for processing ore from the Rescue and Kimberly mines, as well as from other local prospects." The Rescue Mine is a former gold producer that follows an east-west striking quartz vein hosted in granodiorite with mineralization contained in three separate ore-shoots, all of which are open along strike and at depth. Historical grades at Rescue reportedly averaged nearly one ounce of gold per ton with roughly 60 percent of the mineralization in the form of free gold and the remainder associated with sulfides. Metallurgical studies from prior operators indicate that 88% of the free gold is recoverable by a gravity circuit and up to 80% of the sulfide-hosted gold is recoverable by either cyanide leaching or roasting. The Rescue Mine is believed to be similar in nature to the nearby Unity Mine which also exploits the Rescue Vein. The two mines are separated by approximately one-half mile of unexplored strike length, all of which has excellent potential to host additional mineralization. Recent channel sampling within the Rescue Mine returned gold assays as high as 9.6 ounces per ton (oz/t) over a two-foot width, 7.4 oz/t over a one-foot width and 5.5 oz/t over a one-foot width. The Company cautions, however, that a more extensive sampling program is required to develop a representative grade and width. The purchase agreement also provides Kimberly with a considerable complement of mining equipment including: surface excavation equipment, power generators, air compressors, pneumatic drills, LHD and haulage fleet, maintenance and shop equipment, ventilation fans, pumps and other essential items. In exchange for the Rescue Mine and associated assets, Kimberly will pay $200,000 cash and issue 360,000 shares of Kimberly stock. Kimberly also agrees to pay a 3% net smelter royalty (NSR) on production from the property. Please visit the Kimberly website at www.kimberlygold.com for more information. Kimberly Gold Mines is an aggressive gold exploration company focused on the historic mining districts of the Pacific Northwest. Kimberly controls the high-grade Rescue and Kimberly 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. KEYWORD: IDAHO INDUSTRY KEYWORD: MINING/METALS MERGERS/ACQ SOURCE: Kimberly Gold Mines CONTACT INFORMATION: Kimberly Gold Mines, Inc. Kevin Shiell, President, 208-666-4070 www.kimberlygold.com or Investor Relations: Cavalcanti Hume Funfer Inc. Olav Svela, Vice President, 416-868-1079 olav@chfir.com

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Due Da Due......But Be Quick About It!!!!!

NICE CHART.

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Due Da Due......But Be Quick About It!!!!!