KCC Kincora Copper Limited

Kincora Copper Limited (TSX VENTURE:KCC) (the "Company") is pleased to announce
that it has entered into a letter of intent with Forbes & Manhattan Inc. ("F &
M"), a Canadian merchant bank, and Temujin Mining Corp. ("Temujin"), a closely
held private company, whereby the Company would acquire from Temujin all of the
issued and outstanding shares of Golden Grouse LLC ("Golden Grouse"), a
Mongolian company which holds certain mineral exploration licenses adjoining the
Company's Bronze Fox project in Mongolia referred to as the Manlai Licences (the
"Acquisition"). As consideration for the shares of Golden Grouse, the Company is
to issue to Temujin approximately 35,000,000 shares of the Company, which shares
are intended to be dividended out by Temujin to its shareholders concurrent with
the closing of the Acquisition.


The Manlai Licences are located immediately to the western and northern
boundaries of the Company's Buyant License 15000X; in an area of known porphyry
copper deposits. The Bronze Fox Intrusive Complex (BFIC) copper-gold resources
owned by Kincora and Tourmaline Hills Intrusive Complex (THIC) exploration
target which is the subject of the proposed Acquisition are both located just
over 100 kilometres to the north-north-east of the giant copper-gold deposit Oyu
Tolgoi, within the same geological group.


Licence 15075X (Southern) Manlai is approximately 480 km south of Ulaanbaatar
and 190 km north of the Chinese border. The licence area is 24,670.37 hectares.
Licence 15076X (Northern) Manlai is approximately 460 km south of Ulaanbaatar
and 205 km north of the Chinese border. The licence area is 15,208.54 hectares.


The Manlai Licences lie on an east-west trending splay off the Zuunbayan fault
zone, which is also thought to control the location of porphyry style copper and
gold mineralization at Suvarga, Tsagaan Suvarga, Shuteen and Olut Ulaan and
possibly Kharmagtai. This equates to a belt with a 150 km strike length.


The Manlai Licences contain both the Bronze Fox and Tourmaline Hills Prospects
that are underlain by an intrusive centre referred to as the Bronze Fox
Intrusive Complex (BFIC) and Tourmaline Intrusive Complexes (THIC).


Porphyry style alteration at BFIC and THIC and associated mineralisation has a
typical pro-grade high temperate assemble with biotite and magnetite and quartz
sheet veins and stockwork containing varying percentages of chalcopyrite. A
direct relationship does exist between elevated copper and gold grades. The THIC
has significant quartz and tourmaline veining and brecciation in the southern
margins of the intrusive complex. The southern anomaly is more likely to be
associated with an epithermal target. This target was not previously drilled or
trenched by Ivanhoe.


"This transaction suits the Company's strategic goals and will add a significant
tenement to the Company's prospect pool of promising targets," stated Igor
Kovarsky, President and CEO of the Company. "On closing of the Acquisition, our
tenement will encompass two of Ivanhoe's former high priority prospects, the
Bronze Fox and Tourmaline Hills."


Concurrent with the Acquisition it is intended that F & M, together with certain
of its affiliates, associates and other investors, will subscribe for units of
the Company (the "Units") for proceeds of up to $2,800,000, and that certain
insiders and other investors may also subscribe for Units with proceeds to the
Company of up to a further $3,200,000 for combined proceeds of up to $6,000,000
(the "Offering"). The Units are to be priced at $0.35 per Unit and will be
comprised of one share and one share purchase warrant (the "Warrants") with each
Warrant entitling the holder to acquire a further share of the Company at a
price of $0.50 per share for a term of 24 months following the closing of the
Offering. If, at any time after 12 months from the closing of the Offering, the
shares of the Company trade at $0.70 per share or higher on a volume weighted
adjusted price basis for a period of 30 days, the Company will have the right to
accelerate the expiry date of the Warrants to a date that is 30 days from the
date of notice of such acceleration.


As a condition of the closing of the Acquisition and the Offering, the Company
has agreed to appoint one nominee of F & M to the board of the Company on
closing and to put forward a further nominee of F & M for election to the board
at the next annual general meeting of the Company. In this regard Mr. Altai
Khangai has agreed to step down from the board in order to allow for the F & M
nominee to be appointed. It is intended that Mr. Khangai will again be nominated
for election to the board at the next annual general meeting of the Company, at
which time it is proposed to increase the size of the board from six to eight
members.


Closing of the Acquisition and the Offering remain subject to the completion of
a satisfactory due diligence review by both F & M and the Company, the execution
of a definitive agreement and the receipt of all necessary regulatory approvals
including the acceptance of the TSX Venture Exchange.


Bill Nielson, P.Geo., of Temujin is the Qualified Person who has reviewed and
approved the scientific and technical information contained in this news
release.


About Kincora Copper

Kincora Copper Limited is a mining exploration and development company focused
on copper/gold deposits in Mongolia. Its key asset is the Bronze Fox (Buyant
License) copper-gold deposit located in southeast Mongolia along the Oyu Tolgoi
copper belt. The Bronze Fox (Buyant License) is located approximately 140km to
the northeast of the world-class Oyu Tolgoi copper/gold project, and is 250km
from the Chinese border.

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