PRESS RELEASE

$750,000 NON BROKERED PRIVATE PLACEMENT

 Kettle River Resources Ltd. (the “Company”) announces that it has negotiated a non-brokered private placement to raise up to $750,000 by the issuance of up to 1,500,000 units at a price of $0.50 per unit.  Each unit will consist of one common share and one non-transferable share purchase warrant.  Each warrant will entitle the holder to purchase one additional share of the Company for a period of one year from closing at an exercise price of $0.75 per share.  Finder’s fee(s) in compliance with the guidelines of the TSX Venture Exchange policies may be payable in connection with this private placement.

 Proceeds from the placement will be used for continuing exploration work on its DHK Diamonds Inc. properties located in the Northwest Territories and for general working capital purposes.

 The private placement proposed herein replaces the terms of the private placement announced by the Company on August 16, 2005, and is subject to all necessary regulatory approvals.

 For further information contact Ellen Clements at 1 800 856- 3966

 ON BEHALF OF THE BOARD

Ellen Clements, Director