WINNIPEG, MANITOBA -- (MARKET WIRE) -- 09/20/06 -- King's Bay Gold Corp. (TSX VENTURE: KBG) is pleased to announce, subject to regulatory approval, that it has entered into an agreement with Mainstream Minerals Corporation, where Mainstream Minerals will have an option to acquire a 50% interest in King's Bay's Helena Lake project, located in the Dash Lake Area, Rainy River District, Ontario.

These four (4) King's Bay Helena Lake claims are located some 22 miles northeast of the Town of Nestor Falls. The occurrences are located on a N.N.E trending deformation zone. The gold mineralization occurs in a carbonatized quartz andesite shear zone associated with the Cameron/Pipestone Lake fault. The shear zone has been traced through the entire claim block (2800 metres). Visible gold has been noted in many surface samples. Best surface assay returned 23.25 ounces of gold per ton. Source: Ontario Ministry of Northern Development and Mines Assessment Files. Verified by Mr. Gerald L. Colborne, B.Sc., M.Sc., P.Eng., P.Geol., F.G.A.C., M.C.I.M.

A ground magnetic and VLF-EM survey was completed by King's Bay in early 2005. Results showed a pronounced magnetic formation that extends across the entire survey area from south-southwest to north-northwest along the western shore of Helena Lake. Numerous VLF-EM conductors have also been interpreted on this grid. Some of the more dominant conductors are clearly caused by bedrock sources and very likely due to cross-cutting structures such as fault or shear zones. These conductors are excellent targets for follow-up investigation for possible gold mineralization, either by trenching or drilling. Source: Dennis V. Woods, Ph.D., P.Eng, Consulting Geophysicist. Feb 21/2005 Report.

Summary of the Terms of the Helena Lake Option Agreement

In accordance with their letter of agreement, King's Bay hereby irrevocably grants to Mainstream Minerals the sole and exclusive right and option to earn a fifty percent (50%) interest in King's Bay's interest by funding expenditures of $250,000 in the next 12 months.

Mainstream Minerals will have 12 months from the date of this agreement to commence an exploration program and on commencement will deposit $250,000 in King's Bay's account, which shall be designated for exploration expenditures for the property. Mainstream Minerals and King's Bay will then enter into a Joint Venture Agreement upon Mainstream Minerals earning its interest.

About King's Bay Gold

King's Bay Gold Corporation is a very active and well financed Canadian mineral exploration company with nine mineral projects strategically located in Canada's gold camps. The Company also owns its own diamond drill rigs. Strategic locations include - (i) a property located directly adjacent to Canada's richest gold mine, (ii) two past producing gold mines, and (iii) other locations that are in very close proximity to either past producers and / or recent discoveries.

About Mainstream Minerals

Mainstream Minerals Corp. is a private exploration and development company focused on precious metal mining properties with economic potential, with the aim of bringing such properties to commercial production.

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe KBG's future plans, objectives or goals, including words to the effect that KBG or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.

The TSX Venture Exchange has not reviewed and does not accept, responsibility for the adequacy or accuracy of this release.

Contacts:
King's Bay Gold Corporation
Richard Rivet
1 (204) 253-4653
info@kingsbaygold.com