January 7, 2004 

$160,000 Flow-Through financing closed - Tam O'Shanter work commences 

Kettle River Resources Ltd. reports closing the private placement for a total of 800,000 units at 20 cents, each unit comprising one common flow-through share and one non flow-through share purchase warrant at 25 cents first announced November 6, 2003 and accepted for filing by the TSX Venture Exchange on December 24, 2003. In accordance with securities legislation currently in effect, the shares and warrant shares will be subject to a hold period of four months plus one day expiring on May 7, 2004. The purchase warrants will be exercisable for 24 months expiring on December 24, 2005. Haywood Securities inc. was issued a commission of 6% of $60,000 represented by the issuance of 18,000 common shares subject to the same hold period. 

Proceeds of the financing will be used to conduct exploration on the company's 100% owned Tam O'Shanter property in the Greenwood Area. Proceeds from the exercise of the warrants, if any, will provide general working capital. Work Commences Drilling and trenching has commenced on the Tam O'Shanter property. The Wildrose prospect, a fault hosted gold occurrence, is located approximately 5 km west of Greenwood and 3 km south west of the former producing Motherlode Mine. The Wildrose structure continues off the property, on strike for approximately one kilometer to the southeast into the Golconda Fraction that was first explored in 1896. Minnova Inc. first discovered the Tam O'Shanter portion of the Wildrose Vein in 1991 where drilling encountered gold in quartz with chalcopyrite. The vein has not previously been exposed at surface and current trenching will explore this possibility as well as provide geological information. Previous drilling encountered poor core recovery in some holes. Current drilling will retest some of these intercepts as well as test new areas on strike. The drill contract is for a minimum of 1,420 meters. Jim Hutter, P.Geo is the qualified person on the project in compliance with NI 43-101.

TheTSX Venture Exchange has not reviewed and does not accept responsibility for adequacy or accuracy of this release.