B2Gold has the rights to acquire a 37.5% interest from Kinross Gold Corporation, in the Kupol East and West licenses in Chukotka, Russia. These licenses cover the ground surrounding and adjacent to the high grade Kupol gold and silver mine that was being developed by Bema at the time of the Kinross takeover. Kupol is scheduled to commence production in the second half of 2008.

The resulting interest in the Kupol East and West property will be B2Gold 37.5%, Kinross Gold 37.5% and the Government of Chukotka 25%.

• B2Gold, as operator of exploration is conducting exploration on the Kupol East and West Licenses
• B2Gold and Kinross will fund the exploration of the properties covered by the Kupol East and West Licences by each incurring an expected expenditure of US$10 million December 31, 2009. Thereafter, further exploration obligations will be incurred in pro rata to their respective economic interests.

The Kupol West license surrounds the original Kupol project area and represents an expansion of the existing property from approximately 17.5 square kms to an approximate 231.5 square kms. This area also covers the potential northern and southern extensions of the main Kupol vein. Historical Russian and recent B2Gold exploration has identified seven gold/silver prospects in the area covered by the license.

The Kupol East license is situated 3.5 kms to the east of the Kupol West boundary and covers an additional area of 194 square kms. Historical Russian and recent B2Gold exploration has identified five gold/silver prospects.

A total drilling program of 8,500 m on the Kupol project is planned for 2008 with 5,500 m on the Kupol West project and 3,000 m in the Kupol East project.

On Kupol West, drilling will primarily test new targets generated during the 2007 and previous exploration programs. The drilling will test anomalous gold and silver results and significant epithermal alteration intersected during the 2007 drill campaign. Previous work indicates that the structural system and related alteration hosting the main Kupol Vein system extends up to 6 km north of the Kupol mine property boundary.

On Kupol East, the Prekup prospect will be drilled along strike and at depth and several targets will be tested in the Tokai area, including drilling along strike of an extensive sinter or silica cap zone. Historic trenching of the Prekup zone has returned values of up to 36.4 g/t Au with 87.9 g/t Ag over 7.1 m.

Bema had previously completed a Feasibility Study in 2005 for its 75% owned Kupol project demonstrating that it is technically feasible and can be developed as a high grade, low cost gold and silver mine with robust project economics. On the basis of the Feasibility Study the Kupol Mine is projected to produce more than 550,000 ounces of gold annually, over the initial 6.5 year mine life, with operating cash costs of $47 per ounce and total cash cost of $88 per ounce. The project is fully financed. Construction has commenced and the mine is on schedule to commence production in the second half of 2008.

To view Kupol East and West license principal target areas click here

Kupol West Summary

Kupol North Extension

• Drilling on Kupol license indicates the Kupolvein system open to north. Values to 53.2 g/t Au with 121.8 g/t Ag over 7.70 metres within 325 metres of Kupol West license boundary
• Strong magnetic low and resistivity high on trend from main vein

Kupol South Extension

• Kupol deposit 650 zone and associated alteration open to south onto Kupol West license

Moroshka West

• Strong multi-element stream sediment geochemical anomaly emanating from drainage with epithermal signature (As, Sb, Ag, Au, Hg) and gold to 1.32 g/t

Avgusteishiy

• Gold, silver and polymetallic anomalies over 6 km strike and 2 km wide area
• Broad linear zones of silicification associated with the geochemical anomalies
• Historic grab samples to 11.2 g/t

Dubonnet

• Series of veins located with grab sample values to 9.2 g/t Au

Dublon

• Vein and silicified zone to 50 metres wide with individual veins to 5 metres width defined through historical trenching and limited drilling over +1 kilometres strike length. Gold values to 20.4 g/t over 0.60 metres in historical drilling

Left Dublon

• 50 metre wide stockwork zone with polymetallic veins carrying up to 8.6 g/t Au with 314 g/t Ag

Kupol East Summary

Prekup

• Historical trenching has returned values of 14.9 g/t Au with 60.7 g/t Ag over 8.9 metres, and 72.5 g/t Au with 176.9 g/t Ag over 3.4 metres. The vein system has been traced on surface for 800 metres and remains open to the south
• A strong antimony anomaly and magnetic low anomaly are both coincident with known gold mineralization

Tokai

• Several vein and associated alteration zones with up to 13.4 g/t Au over 1.0m
• Quartz rich zone in Tokai North may represent a hydrothermal siliceous sinter (geyser-type hot springs) which has surface values to 0.66 g/t Au and a corresponding magnetic low anomaly
• Numerous magnetic low anomalies are coincident with quartz floatup to 1.66 g/t Au and 100.0 g/t Ag

Kak

• Quartz vein float over 500 metres strike length, with textures indicating boiling of the hydrothermal fluids and proximal to gold mineralization

KB

• Strong Ag-Au stream sediment geochemical anomaly, 2.5 km long, ranging between 0.42 g/t and 1.04 g/t Ag and up to 0.97 g/t Au
• Strong magnetic low anomalies surrounding and cross-cutting a collapsed caldera structure, in places coincident with the stream sediment anomalies