August 19, 2003

Mr. George Stewart reports
KETTLE RIVER PROVIDES COMPANY UPDATE; DIRECTOR APPOINTED 

Kettle River Resources has added Larry Widmer, BComm, of  Kelowna, to the company's board of directors. Mr. Widmer obtained his bachelor of commerce degree with a finance major from the University of Calgary in 1984. He  has extensive  business development experience primarily through his management consulting practice established in 1988. He is a director and treasurer of Widmer  Realty  Ltd.  and  was  a  founding  partner  in  B.C. Wine Country Magazine. Currently a certified board development trainer with the  PanWest CFDC Association and vice-president of finance with the City of Kelowna Art Foundation. Larry has experience in financial planning, real  estate  sales and  community economic development and has been successfully involved with federal, provincial and private business initiatives.

Company update
Northwest Territories
Kettle River is a one-third holder of DHK Diamonds Inc. (DHK) which  has  a participating  interest  in the remaining W0 claims at Lac de Gras and is a one-third owner of the Pellatt Lake property located adjacent to the  Hardy Lake kimberlite field owned by DeBeers. On the WO block, the company has not been  advised  regarding  progress  on completion  of  the  spring  work  program of $90,500 of which Kettle River contributed 9.6 per cent plus 33-1/3 per cent to the DHK  direct  operating and  property  costs  totalling $41,000. This drill program is to establish the size of the WO9 kimberlite pipe by drilling three sides and  a  central vertical  hole.  One  hole was reported with no kimberlite encountered. The kimberlite occurrence  appears  to  be  an  extension  of  the  DO29  North kimberlite  discovered  previously  by  Kennecott.  Archon  Minerals is the appointed operator until Dec. 31, 2003. Under  the  BHP  Billiton  Diamonds Inc.  (BHP)  agreement  entered  into  by  DHK on Dec. 6, 2002, all parties except BHP must finance the cost of drilling seven targets nominated by BHP prior  to  Dec.  31, 2003. The initial DHK contributing interest under this agreement was 55 per cent being reduced to 28.8 per cent subsequent to  the WO9  discovery.  Should  BHP  conduct  a bulk sample on a kimberlite of its choice, the DHK interest will be reduced to 20 per cent. The  participants, other  than  BHP,  are  obligated to maintain and keep the property in good standing. Should DHK and the other participants fail  to  drill  the  seven targets  prior  to  Dec. 31, 2003, all claims containing these targets will become 100-per-cent owned by BHP subject to the gross overriding  royalties payable. The parcel of diamonds obtained from the 1994 Tli Kwi Cho pipe bulk  sample is  to  be  evaluated  at the BHP European facilities. This evaluation will have the advantage of the experience BHP has gained in the evaluation  and development of  the numerous mines comprising the Ekati diamond field. The diamonds from the Tli Kwi Cho underground bulk sample  were  obtained  from tunnels  at  one  elevation only that did not penetrate the central part of the kimberlite complex. There was some indication from the small parcel  of sampled  diamonds  that  larger gemstones may be expected from the untested central  part  of  the  pipe.  With  the recent  advances in evaluating diamond-bearing kimberlites this review appears appropriate. The Pellatt Lake property hosts a diamondiferous dike and has been optioned to  Peregrine  Diamonds, a private company which is obtaining the rights to the Falcon gradiometer system of BHP. The survey should be completed before the  onset  of poor weather. Peregrine can, if certain obligations are met, earn a maximum of  75  per cent in selected target areas.  It  is  the responsibility of DHK to maintain and keep the property in good standing. 

Naket project, Nunavut (50 per cent Kettle River and 50 per cent New Nadina Explorations Limited)
The recent successes by DeBeers on its nearby  Hardy  Lake  property  shows that  kimberlite  occurrences can be anticipated in the area. Naket anomaly D43 has been given a high priority by the  company  consultants,  Apex  and Intrepid Geophysics. Evaluation of nearby targets is under way.

Southern British Columbia
In the Greenwood camp the Tam O'Shanter  project  having  certain  geologic similarities  to  the Emmanual Creek (Washington state) property of Kinross is being prospected, geologically mapped and  additional  ground  has  been staked. The Tam O'Shanter is located at the junction of the Wild Rose fault and a major graben fault coinciding with an extensive altered area at  the base of the tertiary volcanics. The Wild Rose vein hosted gold values which have not been tested to depth. 

The Summit camp limestone basin located between Greenwood and  Grand Forks, British Columbia contains numerous copper iron gold skarns such as the former gold and copper producers B.C. Mine, R Bell,  Oro  Denoro,  Rathmullen  and Emma, none of which have been adequately explored to depth. The Phoenix mine hosted one of the  largest  copper-gold-iron  deposits  in British  Columbia. Previous exploration has been confined to shallow depths by today's standards while geophysical methods to test for depth extensions have  become  standard  practice in other mining camps. The company will be evaluating equipment and contractors to explore the depth potential of  all the Greenwood metal properties. A trenching program has been approved for the Haas Creek talc prospect near Greenwood,  B.C., and a newly discovered decorative marble occurrence near the Phoenix mine.