Vancouver, British Columbia – Thursday, December 14, 2006 – Kettle River Resources Ltd. (“Kettle River”) (TSX Venture Exchange KRR)) announces that its indirect interest, through DHK Diamonds Inc. (“DHK”), in the WO Diamond Project Joint Venture (”WOJV”), NWT, Canada, has decreased to 3.59%.  The WO Diamond Project contains the plus nine hectare DO-27 and the plus three hectare DO-18 diamondiferous kimberlite pipes, among others.

DHK, a private company owned equally by Dentonia Resources Ltd. (“Dentonia”), Horseshoe Gold Mining Inc. (“Horseshoe”) and Kettle River, is a party to the December 6, 2002 WOJV Agreement.  On October 5, 2006 DHK formally elected to contribute to the WOJV $14.9 million budget.  The DHK 20% required contribution of $3,149,286.70 due December 9, 2006 was not made resulting in a dilution of DHK interest to 10.78%.

While Kettle River raised and deposited its portion of $1,049,762.35, the remaining amounts derived from contributions of Dentonia and Horseshoe were not made and as a result of DHK’s dilution Kettle River’s indirect interest in the WOJV has materially changed.  Peregrine and Kettle have mutually agreed to terminate their business combination announced on October 26, 2006.  Both companies will continue to explore options to consolidate the WOJV interests.

On Behalf of the Board of Directors:
 

“Ellen Clements”

President