August 16, 2005

PRESS RELEASE

 $652,500 NON-BROKERED PRIVATE PLACEMENT

Kettle River Resources Ltd. (the “Company”) announces that it has negotiated a non-brokered private placement to raise $652,500 by the issuance of up to 725,000 units at a price of $0.90 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 two years from closing at an exercise price of $1.20 per share. A finder's fee of up to 6% of the proceeds raised, payable in units, 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 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
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.