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Kinyambwiga Gold Project

PL4653/2007



Property 1


(Prospecting License No. 4653)

The Musoma Bunda Murangi Gold project consists of eleven licenses covering 482.04 square kilometres.  Kilimanjaro is currently conducting exploration on the Kinyambwiga gold property license that covers approximately 30.9 square kilometres of the project area. The license is in Northern Tanzania and contains a number of active artisanal mines. The property is within the southern Lake Victoria Goldfields, in the Bunda District, Mara Region.

The Prospecting License Number and area is:

License Number

Area (sq km)

PL 4653/2007

30.9

Total

30.9

The property is approximately 60 kilometres southwest of Musoma, midway between the towns of Kibara and Bunda, near the northern tip of the Speke Gulf on the shoreline of Lake Victoria . The Kiabakari gold mine is approximately 25 kilometres to the northeast of this license.

Access to the license from the Kinyambwiga village is over unimproved roads and may require four-wheel drive vehicles during the wet season. The nearest airport with regularly scheduled flights is at Musoma.

Topography

The topography consists mostly of flat grass covered terrain that is connected on the west with the Mohoji Plain and on the southeast with the Serengeti Plain . The elevation is approximately 1,240 metres. Most of the area is grassland and only lightly forested. Rivers in the area are generally intermittent, and eventually empty into Lake Victoria .

The climate is tropically humid with alternating wet and dry seasons. The rainy season usually starts in November and can extend into May with a short interruption near the end of December. Maximum rainfall tends to occur in March and April. Daytime temperatures in the dry season vary from about 22 to 32 degrees Celsius. Climatic conditions do not seriously restrict exploration programs in this area.

Ownership

The Kinyambwiga property is 100% owned by Kilimanjaro Mining.

 Property Geology and Mineralization

The Kinyambwiga project is near the western end of the Musoma-Mara Greenstone Belt where Precambrian granitic rocks form most of the local geology. In places, these granites are uncomformably overlain by rocks of a northwest-southeast trending Archaean greenstone belt, whose lithologies include pillow basalts, mafic flows, acid volcanics, shales and feldspar porphyries. In places the porphyries are thought to have a possible metasedimentary origin. The granites are intruded by felsic intrusives and Proterozoic dolerite dykes. Some foliated mafic granites are also present. These Archaean lithologies form part of a bi-modal volcanic suite, which is a characteristic feature of late stage Archaean crustal evolution.

Geologic Map Locating Kilimanjaro Mining's Kinyambwiga License

A superficial cover of reddish sandy and lateritic soils blanket the southern half of the property. The Suguti Valley further to the northeast is composed of transported clay rich soils. The thickness and nature of the soils can influence geophysical results.

An aeromagnetic survey over this license and surrounding areas indicates faults play an important role in localizing mineralization and that the intersection of two major structures is significant and often controls artisanal ore bodies. Intersecting fault structures are present in many artisanal mines at Kinyambwiga. Recent structural mapping by Kilimanjaro Mining's geologists in artisanal mine pits indicates the gold was deposited at intersections of northeast or east-west structures with faults related to the strong northwest-trending Suguti regional fault.

Geology and mineralization

The Musoma-Mara Greenstone Belt contains some of the oldest gold mines in Tanzania ; the Kiabakari mine on the east and the Ikungu mine on the west. Gold at Kiabakari occurs in tabular, vertical bodies in albitized amphibolites. The amount of contained proven and probable gold is 900,000 ounces. At the Ikungu prospect contained gold is approximately 185,000 ounces and is reported to average 27.77 grams of gold per tonne over 4.78 metres or 12.0 grams of gold per tonne over 6.0 metres.

The Buhemba gold mine to the west contains approximately 747,000 ounces of gold. Approximately 200,000 ounces of contained gold is reported between Kilamongo and Mwizi, southeast of the Buhemba mine. This gold is reported to average 3.35 grams of gold per tonne over 3.0 metres or 2.27 grams of gold per tonne over 2.0 metres.

The artisanal mines are located in basement granites associated with linear east west and near vertical quartz veins with associated horsetail splay structures. The Kinyambwiga property consists of high-grade gold bearing quartz veins that range between 5.0 and 39.0 grams of gold per tonne and are approximately 1.2 metres thick.

Kilimanjaro Mining's geologist recently completed eighteen trenches and 50 shallow pits at Kinyambwiga. Samples from these trenches and pits contain important gold values of up to 42.4 grams of gold per tonne. Follow-up sampling is currently underway.

Past Exploration Work

Gold exploration and mining in the Musoma-Mara Greenstone Belt commenced in the 1920s at Buhemba and Kiabakari. Additional deposits were discovered in the 1930s at Tembo, Nyasirori, Saki, Mrangi, Seke and Sirori-Simba. During the next 25 years these properties were mined in a small but organized manner.

In 1960, the area was geologically surveyed as part of a government mapping program. These surveys, together with a countrywide airborne magnetic and radiometric survey by Geosurvey International between 1976 and 1979, provided increased information about the regional setting around Kinyambwiga.

Soil sampling, trenching, pitting, geophysics and limited reverse circulation drilling near quartz reefs at the artisan mines has been carried out by several international mining companies including Placer Dome, AngloGold, Skeat, Ashanti, Shanta Mining and Tanganyika Gold. Some exploration had been conducted on Kilimanjaro Mining's Kinyambwiga license. Skeat and Ashanti conducted soil sampling, trenching, pitting, aeromagnetic and induced polarization surveys in 1995 and 1996.

Afrika Mashariki and AngloGold carried out limited trenching and reverse circulation drilling at the Tembo mine in Katario during 1994 and 1996.

From 1996 to 2000, Iscor and Pangea carried out soil sampling, aeromagnetics, trenching and limited reverse circulation drilling on the nearby Suguti license.

Between 2003 and 2005, Shanta Mining conducted soil sampling, trenching and pitting programs at their Katario, Kinyambwiga and Suguti licenses. Shanta Mining also used airborne electromagnetics and induced polarization programs at Kinyambwiga and at Katario. This work identified colluvial hosted gold mineralization in the northeast part of the license. Shanta Mining's assay results from dump samples at colluvial pits ranged from 1.2 to 10.8 grams of gold per tonne.

Recent exploration by Kilimanjaro Mining produced 2.4 grams of gold per tonne over 3.0 metres, 12.2 grams of gold per tonne over 3.0 metres and 42.0 grams of gold per tonne over 1.0 metre. The Company believes this is an impressive amount of gold and future exploration drilling will attempt to increase these intervals beyond only two to three metres. At the present time, no mineral resources or reserves exist on the Kinyambwiga property.

Exploration by the Company

Kilimanjaro Mining is actively conducting exploration at Kinyambwiga. On August 25th, 2007 during a reconnaissance examination, three rock samples were collected for assay. Gold assays for these samples are 20.8 grams per tonne, 11.1 grams per tonne and 2.11 grams per tonne. The samples were assayed by SGS. Fieldwork for a ground magnetics survey was recently completed and the data is being processed. To test for colluvial gold, in February 2008, Kilimanjaro Mining excavated and sampled eighteen trenches and fifty pits on a 100 metre by 100 metre grid.

Kinyambwiga Trench Excavated at the Boundary of the Colluvium Field

The geologic setting at Kinyambwiga consists of very well developed silicification and a strong northeast striking vein system in granitic rocks. The strength of the vein system suggests Kinyambwiga could contain a significant bedrock gold deposit.

Kinyambwiga Property Geological Map

Kilimanjaro Mining's pitting and trenching program recently discovered very important gold values in colluvium near the gold veins. Assays were received for 71 samples out of more than 200 samples collected in recently excavated trenches and pits. As reported by SGS, these 71 samples returned highly significant results; 20 samples had gold values greater than 1 ppm and of those twenty, 9 samples were between 1 and 5 ppm, 5 samples between 5 and 10 ppm, 2 samples between 10 and 20 ppm and 4 samples were over 20 ppm. The highest-grade single sample was 42.4 ppm.

Kinyambwiga Trench and Pit Assays

(March 14th, 2008)

(For 71 samples)

Number of Samples

Gold Assays

9

>1-5 ppm

5

>5-10 ppm

2

>10-20 ppm

4

>20 ppm

(Note: 31.1 ppm = 1 Troy ounce of gold/ton; and

10 ppm is about one third of a Troy ounce)

The Company believes these are very significant assay results and additional sampling is scheduled to begin immediately. These assays indicate that the installation of a small gold recovery plant may be justified. Additional sampling is required to confirm the initial results.

To date, exploration expenditures by Kilimanjaro Mining total $100,000.

Note:
This Summary has been prepared as an update on the Company and its mineral properties and does not purport to contain all of the information that a recipient may desire. In all cases, recipients should conduct their own investigation and analyses of the Company, its assets and the information provided in this document. Any and all statements, forecasts, projections and estimates contained in this document are based on the Company management's current knowledge and no representation or warranty is made as to their accuracy and/or reliability.

Note: all amounts are in United States dollars unless otherwise indicated

Note: Unless explicitly stated, resources/reserves are based on historical data and are not NI 43-101 compliant