RNS Number:5982F
Kiwara PLC
11 October 2007


For Immediate Release

                                                                 11 October 2007


                                   Kiwara Plc


                          ('Kiwara' or the 'Company')



      Acquisition of a further 20% interest in Kalumbila Minerals Limited

The Company is pleased to announce that it has acquired from LM Engineering
Limited a further 20% interest in Kalumbila Minerals Limited, the joint venture
company, in exchange for 15 million Ordinary Shares of 1p each ("Ordinary
Shares") in Kiwara representing a 9.6% interest in the enlarged share capital,
together with a cash consideration of $150,000 payable in two instalments,
$50,000 immediately and $100,000 on 15th May 2008. Based on the mid-market
closing price as at 10 October 2007 of 26p per Ordinary Share, the aggregate
value of the consideration is #3.9 million. Full information on Kalumbila
Minerals Limited is set out in the Company's Admission Document dated 6 July
2007



This transaction gives Kiwara's subsidiary, Kiwara Resources (Zambia) Limited a
75% ownership of Kalumbila Minerals Limited. This can be increased by 5%
following the expenditure of $2.2 million on the project. Kiwara owns 75% of
Kiwara Recourses (Zambia) Limited.


The transaction is important to the shareholders of the Company in that it
increases the percentage of its ownerships in Kalumbila Minerals (which has the
rights to the licence area), so giving greater potential up-side in the project
whilst LM Engineering remains a strong local partner.


L M Engineering Limited has entered into a lock-in on the same basis as that
entered into by the Directors at the time of the AIM Admission, being a lock-in
until 6 August 2008 (save in respect of very limited circumstances such as an
intervening court order) and an orderly market undertaking for a further period
until 7 August 2009.



L M Engineering Limited is a Zambian registered company controlled by Mr
Severine Chilufya Kazenene who is a director of Kalumbila Minerals Limited a
subsidiary of the Company.


Accordingly, the purchase of the 20% set out above is a Related Party
Transaction under the AIM Rules. The Directors of Kiwara (none of whom are
involved in the transaction) having consulted the Company's Nominated Adviser
consider that the terms of the transaction are fair and reasonable insofar as
the Company's shareholders are concerned.


Colin Bird, Chairman, said "This transaction increases our stake in this highly
prospective nickel/copper/cobalt and uranium area. We look forward to
progressing our exploration programme to unlock shareholder value".


The Company awaits assay results from drilling programmes conducted at its
Kalumbila and Kawanga projects.


Application will be made for the 15,000,000 new Ordinary Shares referred to
above, which will rank pari passu with the existing Ordinary Shares in issue, to
be admitted to trading on AIM and such admission is expected to become effective
on 17 October 2007.



For further information, please contact:


Kiwara Plc                                               Tel: 0207 584 8681
Peter Vivian-Neal
CEO
Raju Samtani                                             Tel: 0207 581 4477
Finance Director

Beaumont Cornish Limited                                  Tel: 0207 628 3396
Roland Cornish


Bishopsgate Communications Limited                        Tel: 020 7562 3366
Nick Rome


                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
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