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King’s Bay Gold Corporation announces closing of financing with the MineralFields Group

Winnipeg, MB – July 18th, 2007

King’s Bay Gold Corporation (TSX.V: KBG) is pleased to announce the closing of a non-brokered private placement of $1,000,000 through the sale of 1,818,181 Flow-through Units at $0.55 each to the MineralFields Group.

Each Flow-through Unit consists of 1 flow-through common share, and one non-flow-through common share purchase warrant having a term of 24 months from date of issue and an exercise price of $1.00 in year 1 and $1.50 in year 2. In arranging this financing, First Canadian Securities ®, a Division of Limited Market Dealer Inc. (“the Finder”), received a 5 % cash finder’s fee and 24 month non-flow-through finder’s fee common share purchase warrants equal to 10 % of the number of units subscribed for, at an exercise price of $0.55 per unit. King’s Bay Gold Corporation also paid to the Finder a due diligence fee of $20,000 equal to 2 % of the aggregate proceeds from the non-brokered private placement. The shares issued in connection with this offering will be subject to four month plus one day hold period.

King’s Bay Gold Corporation intends to utilize the proceeds from this non-brokered private placement for the ongoing exploration and development of its joint-ventured Bobjo Mine Property, where drilling is presently ongoing, and at its other projects.

“King’s Bay is very pleased to have completed this financing with the MineralFields Group”, said Richard Rivet, President & CEO. “We look forward to an ongoing working relationship with MineralFields Group as we continue to develop our holdings in the Red Lake Gold Camp of Northwestern Ontario.”

About MineralFields, Pathway and First Canadian Securities ®

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds. Information about MineralFields Group is available at . First Canadian Securities ®, a division of Limited Market Dealer Inc., is active in leading resource financings (both flow-through and hard dollar) on competitive, effective and service-friendly terms, with investors both within, and outside of, MineralFields Group.

About King’s 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. The Corporation is a very active and well financed Canadian mineral exploration company with nine mineral projects strategically located in Canada's gold camps. Strategic properties include - (i) a property located directly adjacent to Canada's richest gold mine, (ii) a past producing gold mine with a brand new ultra high-grade gold discovery, and (iii) other locations that are in very close proximity to either past producers and / or recent discoveries.

King's Bay Gold Corporation

Richard Rivet

President & CEO

(204) 253-4653

Email: info@



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.

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