Mr. Greg Isenor reports

KO GOLD ANNOUNCES DEBT SETTLEMENT

KO Gold Inc. has entered into debt settlement agreements to settle outstanding debts owed to certain creditors totalling $493,471.24, including outstanding fees owed to management and contractors working for KO Gold. Pursuant to the settlement agreements, the company has agreed to issue an aggregate of 2,467,356 common shares at a deemed price of 20 cents per common share to settle the debts.

Securities issued pursuant to the settlement agreements will have a statutory hold period of four months and one day in accordance with applicable securities laws. Following closing of the debt settlement, the company's balance sheet will be strengthened through the elimination of the applicable liabilities

Two insiders of the company will be participating in the debt settlement, settling an aggregate of $282,871.24 of indebtedness through the issuance of 1,414,356 common Shares. Such participation constitutes a related party transaction under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company is relying on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a), respectively, on the basis that the fair market value of the insider participation does not exceed 25 per cent of the company's market capitalization.

About KO Gold Inc.

KO Gold is a Canadian junior exploration company listed on the Canadian Securities Exchange under KOG. The company's strategy is to acquire and explore highly prospective gold properties within the Otago gold district in New Zealand and has a continuing program of permit exploration and drilling. KO Gold presently has four 100-per-cent-owned exploration permits (EPs) and one exploration permit under application (Carrick Range) within the Otago gold district for a combined land package of 400 square kilometres. The company's Smylers gold, Hyde and Glenpark EPs are located adjacent to OceanaGold's Macraes gold mine, and the Carrick EP hosts the historic Carrick goldfield, which holds promise as a significant gold deposit near Santana Minerals' Bendigo-Ophir gold project. che Company also has a NSR (net smelter return) royalty on three additional permits, including Garibaldi, Raggedy Range and Rough Ridge South, totalling 340 square kilometres. KO Gold has on and drilling on its permits in the Otago gold district over the past five years, including RC (reverse circulation) and diamond drilling on its Smylers gold EP.

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