King's Bay Gold Discovers New High-Grade Gold Zone at Bobjo Mine Project, South Bay Area, Red Lake

2008-04-23

TSXV - TSX Venture Exchange · Lithium · Gold · Tin · Tantalum · Rubidium · Copper · Canada

April 23, 2008- King's Bay Gold Corporation (TSX.V: KBG) and Mainstream Minerals Corporation (TSX.V-MJO) are pleased to announce that high grade gold intervals characteristic of a Red Lake vein type deposit have been intersected in Hole 25 at their joint-venture Bobjo Mine project, located in Earngey and Agnew Townships, Red Lake, Ontario.

Results Confirm Extension of Zones and Confirms Depth Extension

This project continues to be the site of new discoveries that so far included high-grade gold, strategic rare metals and rare earth elements. The partners are now pleased to report the discovery of a new high-grade gold zone located approximately 150 metres South of the main zones at a depth of 291.0 to 293.0 metres. The results extend existing mineralized zones and confirm depth extension.

Hole # 25 Interval From Interval To Interval Metres Au (g/T) 1.50 4.50 3.00 5.77 Incl. 1.50 2.50 1.00 14.55 241.50 242.20 0.70 1.94 291.00 293.00 2.00 19.61 Incl. 292.00 293.00 1.00 43.73 And 292.50 293.00 0.50 79.31

The partners are also pleased to report that a third drill rig is now at work at this Bobjo project. A large 15,000 metre drilling program is well underway and more assay results will be announced very shortly when received and verified.

This Bobjo Mine project is located between the former South Bay Zinc / Copper Mine and Uchi Lake Gold Mine. It is noted that an existing power line passes through the southern part of the property and that it is within trucking distance to the Placer Dome / Goldcorp Mill in Red Lake, Ontario. It is comprised of 259 claim units totaling 10,360 acres. The area has a history of gold and base metal production dating back 80 years. The work presently being carried out by the partners represents the commencement of the first modern, systematic exploration of the property in the last 80 years when a two compartment shaft was sunk to 270 feet with two levels in 1929.

The partners are very pleased with the results of the holes reported to date on this Bobjo Mine Project. All zones are open in all directions and at depth. Included in the following table are the results of all holes received to date by the partners at this Bobjo Mine Project:

Hole Dip Interval From Interval Interval Metres Au To (g/T) BJ07-01 -45 1.25 10.00 8.75 2.557 including 1.50 2.00 0.50 5.056 and 4.00 4.50 0.50 15.659 and 9.50 10.00 0.50 18.184

BJ07-02 -60 0.50 7.50 7.00 1.561 including 3.90 4.40 0.50 2.958 and 6.50 7.50 1.00 6.847

BJ07-03 -85 2.00 6.40 4.40 2.235 including 2.00 2.50 0.50 6.787 and 5.00 5.40 0.40 4.289 17.00 17.50 0.50 5.428 24.50 25.00 0.50 2.517

BJ07-04 -45 3.00 13.10 10.10 1.276 including 8.30 13.10 4.80 2.051 14.30 16.10 1.80 1.236

BJ07-05 -45 12.20 12.80 0.60 1.332 14.80 18.70 3.90 1.049 including 18.20 18.70 0.50 4.448 80.40 80.80 0.40 1.656

BJ07-06 -50 2.00 3.10 1.10 32.950 including 2.90 3.10 0.20 93.090 3.10 3.50 0.40 1.450 6.50 8.80 2.30 2.050 9.20 9.80 0.60 1.150 102.00 102.30 0.30 29.010Hole Dip Interval From Interval Interval Metres Au To (g/T) BJ07-07 -60 1.60 2.70 1.10 8.701 including 2.20 2.70 0.50 20.030 5.50 6.50 1.00 1.731 9.20 11.00 1.80 3.690 including 9.20 10.00 0.80 6.290 and 10.00 11.00 1.00 1.100 13.80 14.20 0.40 1.460 65.00 65.30 0.30 3.001

BJ07-08 -60 1.00 8.50 7.50 1.683 including 2.20 2.50 0.30 5.001 and 8.00 8.50 0.50 12.001 13.00 13.30 0.30 1.690 67.70 69.00 1.30 2.501

BJ07-09 -60 12.80 13.10 0.30 2.660 13.50 15.00 1.50 6.250 including 13.50 14.30 0.80 11.301 14.30 15.30 1.00 1.060 16.30 16.80 0.50 2.140 24.00 27.40 3.40 8.450 including 26.00 27.40 1.40 10.950

BJ07-10 -50 5.60 6.60 1.00 2.930

BJ07-11 -50 1.50 3.50 2.00 3.271 including 1.50 2.00 0.50 8.501 12.50 13.00 0.50 5.060 89.10 89.50 0.40 1.011 191.30 192.00 0.70 2.970

BJ07-12 -50 0.50 2.50 2.00 4.955 including 1.50 2.00 0.50 9.711

BJ07-13 -50 NSVHole Dip Interval From Interval Interval Metres Au To (g/T) BJ07-14 -45 0.60 3.05 2.45 53.610 including 0.60 1.80 1.20 118.880 10.60 10.90 0.30 7.040

BJ07-15 -85 NSV

BJ07-16 -60 0.50 1.70 1.20 4.590 7.00 8.00 1.00 2.550

BJ07-17 -85 0.00 0.50 0.50 1.551 3.00 3.50 0.50 2.962 6.00 6.50 0.50 3.711

BJ07-18 -70 NSV

BJ07-19 -60 11.25 11.50 0.25 14.600 12.00 12.40 0.40 6.061 14.50 15.00 0.50 1.011

BJ07-20 -60 0.50 1.00 0.50 2.821 1.00 1.50 0.50 2.322

BJ07-21 -60 11.50 12.00 0.50 1.470 23.00 23.20 0.20 5.081

BJ07-22 -85 8.50 9.50 1.00 2.140 13.50 15.50 2.00 1.531 20.00 22.00 2.00 4.140 57.50 58.50 1.00 9.452

BJ07-23 -60 0.50 1.00 0.50 1.671 1.00 1.50 0.50 4.470 1.50 2.00 0.50 3.252 5.50 6.00 0.50 1.311 6.00 6.50 0.50 4.252 8.50 9.00 0.50 4.060 9.00 9.50 0.50 12.800Hole Dip Interval From Interval Interval Metres Au To (g/T) BJ07-25 -45 1.50 4.50 3.00 5.771 including 1.50 2.50 1.00 14.550 241.50 242.20 0.70 1.941 291.00 293.00 2.00 19.611 including 292.00 293.00 1.00 43.732 and 292.50 293.00 0.50 79.311

True Widths are not known.

NSV = No Significant Values

Holes # 14, 16, 20 and 23 Rare Metal and Rare Earth Elements Intersections

These four holes are situated along a fault structure with an approximate ten-kilometre strike length.

Hole # 14

A 40 ft intersection with a grade of 13.54 g/t Gallium (Ga), 21.50 g/t Scandium (Sc), 12.98 g/t Rubidium (Rb), 20.27 g/t Cerium (Ce), 8.25 g/t Lanthanum (La), 12.03 g/t Yttrium (Y), 1.83 g/t Ytterbium (Yb), 3.23 g/t Selenium (Se), 6.76 g/t Lithium (Li), 3.58 g/t Cadmium (Cd), 4.28 g/t Niobium (Nb), 2.25 g/t Hafnium (Hf), 38.57 g/t Cobalt (Co), 79.29 g/t Vanadium (V), 83.61 g/t Strontium (Sr), and 96.53 g/t Zirconium (Zr) at depth of 153.0 metres.

Hole # 16

A 43.6 ft intersection with a grade of 11.01 g/t Gallium (Ga), 16.53 g/t Scandium (Sc), 25.85 g/t Rubidium (Rb), 15.36 g/t Cerium (Ce), 6.53 g/t Lanthanum (La), 9.30 g/t Yttrium (Y), 3.77 g/t Selenium (Se), 11.44g/t Lithium (Li), 1.00 g/t Cadmium (Cd), 1.35 g/t Thorium (Th), 2.94 g/t Niobium (Nb), 1.40 g/t Hafnium (Hf), 48.57 g/t Cobalt (Co), 86.55 g/t Vanadium (V), 70.51 g/t Strontium (Sr), and 52.15 g/t Zirconium (Zr) at a depth of 258.0 metres.

Hole # 20

This hole intersected a 126 ft mineralized quartz carbonate zone. The partners only sent a few small sections for a quick test. This zone was intersected from 194.8 metres to 233.0 metres. Sections sent included: From 194.8 to 197.4 metres, 203.8 to 204.1 metres, 216.5 to 217.0 metres, 220.0 to 221.0 metres, 224.0 to 224.4 metres, 226.4 to 227.0 metres and 232.7 to 233.0 metres.

The average grade was 18.72 g/t Gallium (Ga), 21.42 g/t Scandium (Sc), 13.76 g/t Rubidium (Rb), 28.18 g/t Cerium (Ce), 11.85 g/t Lanthanum (La), 16.00 g/t Yttrium (Y), 5.00 g/t Selenium (Se), 11.09 g/t Lithium (Li), 3.42 g/t Cadmium (Cd), 1.48 g/t Thorium (Th), 6.19 g/t Niobium (Nb), 3.33 g/t Hafnium (Hf), 2.04 g/t Ytterbium (Yb), 42.37 g/t Cobalt (Co), 62.63 g/t Vanadium (V), 44.86 g/t Strontium (Sr), and 128.80 g/t Zirconium (Zr).

Hole # 23

This hole intersected a 250 ft mineralized quartz carbonate zone. The partners are expecting results to come in very shortly.

Rare Metals and Rare Earth Elements - Demand and Uses

Demand for rare metals and rare earth elements is soaring because of consumer demand for more fuel-efficient cars, alternative energy technologies such as fuel cells, the nuclear power industry for both practical and experimental utilization, rechargeable batteries, lasers, hydrogen storage, superalloys as used in the aerospace industry, televisions, cellular telephones, computer screens, permanent magnets as used in electric-hybrid vehicles and in the conductor industry for many of the new "Green" technologies, etc. Currently, 97% of the world supply of the Rare Earth Materials (REM) comes from China. China recently announced a reduction in the exports of REMs coming out of their mines. This decision will considerably reduce the supply for buyers outside of China while world demand is in full growth.

The main consumers of rare earth materials are in South-East Asia (Japan, Korea, Thailand, China) and in the USA. The United States used to be the largest consumer of rare earth materials, about 27% of the world's total. However, in recent years, China became the number one global consumer, exceeding the American consumption. The United States currently imports nearly 100% of their needs in REM, and the American market for rare earth materials is valued at more than 1 billion US dollars per year. It will soon become critical to produce these resources outside of China.

It is reported that 77% of world production is currently coming from one mine in China. The United States used to produce approximately 6% of the world's supply from one of the only in-situ rare earth mines in the world, at Mountain Pass, California. However, Mountain Pass — the only producing mine in North America — ceased operations several years ago, creating a situation where there is no Rare Earth Elements production taking place in North America, or anywhere significant outside of China. Therefore prices and demand are expected to continue to rise drastically.

The joint venture is 50 % Mainstream Minerals (TSX-V: MJO) and 50 % Kings Bay Gold (TSX-V: KBG) with Mainstream Minerals being the Operator of the project. John Archibald, A.P.G.O. - Geologist is the Qualified Person under National Instrument 43-101. All of the samples herein were analyzed by SGS Canada Inc.'s and Accurassay Labs.

About Kings Bay Gold

King's Bay Gold is unique in the industry in that it owns most of the equipment required to carry out the various phases of exploration. This includes diamond drills, bulldozers and other exploration equipment, which gives the company the ability to quickly adjust work programs as exploration results are realized and company strategies change.

KBG Shares Outstanding: 38,654,350 Approximate Cash on hand: $2.2 million

King's Bay Gold Corporation Richard Rivet President & CEO (204) 253-4653info@kingsbaygold.comwww.kingsbaygold.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe KBG's future plans, objectives or goals, including words to the effect that KBG or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.

King's Bay Gold Discovers New High-Grade Gold Zone at Bobjo Mine Project, South Bay Area, Red Lake

Earlier from Lion Rock Resources Inc.