NEWS RELEASE AUGUST 12, 2008

ESKAY CREEK AREA:BASALT MAGMA-RELATED COPPER-NICKEL-COBALT MASSIVE SULPHIDE DISCOVERY MADE AT COREY PROPERTY, BC

Vancouver, BC – KENRICH-ESKAY MINING CORPORATION (the “Company”) is very pleased
to announce positive results from the 2008 drilling at its 100% owned Corey Project in the Eskay
Creek mining camp northwest of Stewart, British Columbia. Exploration at the Corey Project in 2008
has focused on drill-testing the highly prospective Red Lightning Zone in the eastern part of the
property.
This new discovery is particularly exciting for the Company, as it further confirms the world-class
nature of the Eskay Rift belt. At Red Lightning, the Company is finding copper, nickel and cobaltbearing
massive sulphides within a basalt sub-volcanic setting, lying within the same Salmon River
Formation stratigraphy that hosts Barrick Gold’s Eskay Creek Au-Ag mine. The Company is well
positioned in the exploration play as it holds a full 28 km of strike length of the 32 km long Eskay Rift
belt.
In 2006, during AeroTEM II time-domain electromagnetic surveying of the entire Corey property, a
conductor was detected that correlated with a co-incident magnetic response. Company prospectors
subsequently discovered an area of strong gossan (the “Red Lightning”) cropping out on the north
and west-facing high mountain slopes above the Mandy Valley. Grab samples contained around 0.5
% Cu and 5 g/t Au. Follow-up geological mapping identified a steeply northeast dipping zone of
oxidised iron sulfide within a chloritized massive mafic volcanic rock. This zone was tested in 2007
by three drill holes. Drilling intersected a strongly chlorite-epidote altered mafic volcanic unit hosting
stratabound network-veined, disseminated to semi-massive pyrite-pyrrhotite-chalcopyrite over
widths of up to 20 m drilling thickness with notable precious metal enrichment over a strike length of
at least 60 metres. A fourth drill hole from 2007 was incomplete, and was re-drilled to its target depth
in the 2008 season.

New Copper-Nickel-Cobalt Discovery made at Red Lightning Zone
Drilling recommenced on this zone in July of this year. To date, in 2008 the Company has completed
7 holes at the Red Lightning (CR08-83 to -89) for 1749.4 metres of total drilling. Each hole has
intersected the zone. Together they have extended its strike length to at least 100 metres and its
down-dip extent to at least 220 metres. The zone remains open down dip and along strike. Visually
promising mineralization was intersected in four diamond drill holes.

Samples from portions of these intersections were expedited for rush assay at Acme Analytical
Laboratory in Vancouver. Additional assays are pending, for the balance of the four holes, and for
the three other holes in the 2008 program. All platinum group analyses are pending.
Diamond drill hole, CR08-86, intersected a 10.8 metre (estimated true thickness) zone of
intrusive sill-bound mineralization comprising network-veined to semi-massive pyritepyrrhotite-
chalcopyrite. Enveloped in that zone is a horizon of fine grained massive
sulphides, containing pyrite, pyrrhotite and chalcopyrite, with a width of over 5.3 metre
(estimated true thickness). The massive sulphide horizon comprises 1-3% visible chalcopyrite as
disseminations and intermittent patches in a groundmass of pyrite-pyrrhotite. PGE assay results are
pending.

Basalt Magma-Related Base Metals (Copper-Nickel-Cobalt) Now Recognized in the Eskay Setting
Since 2003, the Company has conducted a systematic and aggressive, multi-disciplinary exploration
program on its 100% owned Corey property. Work during that time has demonstrated that the Corey
property, and now our recently acquired St. Andrew Goldfields Option ground (the Company’s
“Eskay Project”), lies astride a strongly mineralized Early to Middle Jurassic age rift basin (the
“Eskay Rift”). The focus of the Company’s program is primarily for precious metal rich volcanogenic
massive sulphide deposit, similar to Eskay Creek. However, these recent results point to significant
basalt magma-derived, base metal (copper-nickel-cobalt) mineralization that accompanies the riftinfilling
basaltic volcanic rocks. Government and industry research has identified Barrick Gold’s
Eskay Creek deposit to be a high sulphidation type of VMS deposit. High sulphidation VMS deposits
are formed above magma that has entered into very high levels of the footwall stratigraphy close to
the floor of the ancient seafloor rift basin. Fluids from those high level magmas contribute directly to
the seafloor exhalations and replacements that formed the VMS deposit. Now, a similarly highlevel
intrusive, sub-volcanic setting is seen to be host to possible basalt magma-derived
base metal (Cu-Ni-Co) massive sulphides at Red Lightning. Notably, sub-volcanic, tholeiitic
basalt magmas such as at Red Lightning, are important in the genesis of some of the major Cu-Ni-
PGM deposits worldwide.

While the Company’s focus remains on “typical” Eskay Creek style exhalative sulphide deposits, this
new sub-volcanic copper-nickel-cobalt discovery at Red Lightning represents an exciting new style
of mineralization for the Eskay Rift at the Corey Property. The Company’s land tenure position
dominates all of the new exploration target possibilities.
The Company is currently drilling on its abutting Eskay Project which is located within similar Eskay
Rift geology in a location near the southern boundary of the Eskay Creek mine property of Barrick
Gold.

The geological portion of this release has been approved by Sean McKinley, M.Sc., P.Geo., theCompany’s Qualified Person.

On behalf of The Board of Directors of Kenrich-Eskay Mining Corporation.

http://www.kitco.com/pr/1373/article...