Kettle River Resources Ltd. reports: Nine month highlights: (the complete report is available under the Company filings at www.sedar.com )

The Company has a working capital of $241,792 as at January 31, 2005 and has accumulated losses of $8,284,629.  Since inception, the Company has been successful in funding its operations and to date has net issued shares of 7,265,611 for net proceeds of $8,602,511 averaging $1.18 per share. On January 31, 2005, the Company completed a non-brokered private placement for a total of 1,000,000 units at 20 cents, each unit consisting of one common share and one purchase warrant to purchase one common share at $0.25 cents exercisable for 12 months expiring Feb 2, 2006. The hold period on the shares and shares from the exercise of warrants expires on June 2, 2005.
     For the current period, the Company experienced a net loss of $178,022 or $0.03 per share compared to a loss of $97,605 or $0.02 per share the previous year.  Logging income realized from sale of timber harvested from the Company’s fee simple real estate holdings grossed $302,526 in the previous year. The Company does not anticipate logging income during the 2005 fiscal year.
     Operating expenses of $102,184 for the period, arising from general and administrative costs generally remained the same, (2004 - $107,776) as the previous year. 
      Property exploration costs decreased to $102,950 from $288,694 during the same period the previous year and the decrease is mainly attributed to the completion of reclamation and road costs during the previous year.

MINERAL PROPERTIES: Of the $102,950 spent on the Company’s mineral properties, DHK Diamonds Inc related costs were $20,786 (2004 – $17,215) and mainly consisted of expenses related to maintaining its 1/3 equal interest in the company.   WO Claim Block: On September 20, 2004, an amended WO JV Agreement covering Mining Leases SAS1, SAS2, and SAS3 was signed appointing Peregrine Diamonds Ltd. (Peregrine) the operator and giving them an option to increase their interest to 54.475% from the current 38.475% by paying the entire cost and completing by October 31, 2006 a 200 tonne bulk sample.  Peregrine has purchased the former BHP Billiton interest in the WO Claim.  The DHK participating interest, upon completion of the bulk sample will be reduced from the current 28.8% to 20%.  Peregrine Diamonds Ltd. commenced taking the 200 tonne sample of the southern kimberlite lobe of the Tli Kwi Cho (DO27) on February 25, 2005.  The kimberlite sample will be recovered using a 14inch reverse circulation (RC) drill, bagged and trucked to the test plant at the Ekati™ Diamond Mine.  In 1994 the Kennecott bulk sample tunnel used to access the pipe was abandoned due to caving resulting in tunnel failure. This pipe now being sampled has never been bulk tested for diamond content, only core drilled for diamond indicators and micro/macro diamonds.
     As at March 21, 2005, Peregrine reported “A total of 443m of drilling, using a large diameter 14” drill rig, has been completed thus far on the DO-27 kimberlite pipe. Kimberlite material from the first two holes has been sent to the Ekati plant for processing. Drilling is currently continuing on Hole 3 of a planned 5 hole program. All three holes intersected clay-rich altered green kimberlite. Indicator minerals are abundant throughout all sections. Pyrope garnets and chrome diopside are the most abundant indicator species present. Orange mantle garnets (eclogitic or megacrystic), chromite and some fresh olivine grains were also noted.”  Updates and images as they become available will be posted.
     Pellatt Lake Property: Peregrine Diamonds Ltd. reported that during September and October 2004, they completed a 3,878 line kilometre Falcon™ Airborne Gravity Gradiometer survey. Pellatt Lake is located approximately 40 km to the northeast of the Ekati Diamond Mine at Lac de Gras and immediately adjacent to the Ekati mine block and De Beers Hardy Lake leases. Peregrine can earn up to a 75% interest in the DHK 100% owned Property by completing a Falcon™ gravity gradiometer survey, paying for all additional exploration and arranging financing to bring any discovery into production.  Prior to December 31, 2005, Peregrine has the right to drill test, at its cost, any targets identified by the Falcon Survey to acquire 51% of each target drill tested.  If they complete a 200 tonne bulk sample, they can earn a total of 65% of that target. A further 10% can be earned by arranging production cost financing for the DHK partners.
     Of the $81,389 spent on the Greenwood Area Properties (mainly held for gold potential), $37,444 was spent on the Phoenix properties for recording of work programs, generation of reports, and assessment filing.  Claim boundary surveys, review, prospecting and summary of target potential were conducted and the property listed for option.  Costs of $17,485 spent on the Tam O’Shanter claims relate to claim boundary and survey costs, sample and core storage and the completion of the trenching and drilling program conducted earlier in the year.  Further drilling was recommended by J.M. Hutter, P. Geo in his final report and are still being considered.  At the Arcadia Property, expenditures of $16,721 relate to claim boundary location and partial completion of line cutting in preparation for geophysics.  Significant gold silver occurrences in a fault hosted serpentine zone require further testing. 
     On March 11, 2005, the Company announced the sudden passing of George O.M. Stewart, director and president. In 1980, Mr. Stewart was a founding director of the Company and was instrumental in conducting and supervising exploration and administering the direction of the Company.  He will be sadly missed by all.  Gerald H. Rayner, director since 1992 has been appointed interim president and together with directors Ellen Clements and Larry Widmer will ensure the programs and initiatives that George initiated will be carried out.

            The Company anticipates it will receive an update on the Tli Kwi Cho bulk sample shortly.

 On behalf of the Board,

Ellen Clements, Director