Update on Kansai Mining Corporation projects

    PAYSON, AZ, July 15 /CNW/ - Kansai Mining Corporation (TSX Venture
Exchange: KAN) (the "Company") is pleased to announce various developments
with respect to its Venezuelan and Kenyan Projects.
    In the last 3 years the Company has had the services as Special Advisor
of M. Michel Hauchard, an emeritus senior French diplomat. M. Hauchard has
been instrumental in effecting high level introductions in Morocco, Venezuela
and The Middle East. He has negotiated with Senior Venezuelan Government
officials over the last 18 months.
    As a result of his work, the Company's wholly-owned Venezuelan subsidiary
company, Compania Minera Adamantine C.A., (CMA) has been granted "Favoured
Status" recognition as a Company of National Interest in Venezuela. The
Company introduced and installed state-of-the-art diamond treatment technology
into Venezuela, transferred that technology permanently to Venezuela, in that
it has trained local engineers in its use. The Company has, in addition
offered both its expertise and the use of the facility to other diamond
projects that MIBAM (Ministry of Basic Industry and Mines) might wish to
pursue. The Company has emplaced the 3 Stage Treatment Plant permanently in
Venezuela, and thus anticipates that certain concessions on the importation
and continuing operation will be sympathetically reviewed. The "Favoured
Status" designation of CMA gives it access to grants and loans from the
"Fonden Fund", a fund set up for national industrial developments in
Venezuela. This could benefit both the Natal Diamond Project and a mining
prospect MIBAM has invited CMA to take up for emeralds in Aragua State CMA, as
a result of these negotiations has offered the Government a 20% interest in
the stock of CMA on an option basis which the Government would wish to remain
open for two years.
    As soon as possible with money from the "Fonden Fund", CMA will commence
to complete its bulk-sampling programme on the Natal project at Belmudez and
extend its exploration over the next 3 years with the intention of taking the
project through the feasibility stage now that the requisite Exploration and
Exploitation Permits have been granted. The Belmudez work will comprise two
deep trenches along the trend of the best diamond occurrences, and a new
prospect area 300-400 metres north-west of the eastern side of Belmudez will
be explored shallowly initially normal to the supposed trend lines.
    At the Migori Gold Project in South-west Kenya, preparations are in hand
to recommence the drilling programme, once the "long rains" have abated and
rigs can be made available again, following the enforced shutdown in the early
period of the year due to the uncertainties over the state elections. The
"long rains" were later than usual in 2008, normally from April onwards but
this year, from June forward. Severe though sporadic downpours are still
occurring in July. After completion of this phase the Company will update the
technical report filed in 2006. That report stated "From the resynthesisation
of all the data coupled with the 2004 drilling results the Company established
that the 4 main zones of gold mineralization contained as currently explored
33 million tonnes @ 1.10 g/t Au for 1,172,000 ounces as indicated resources."
The complete technical report is also available on the Company's web site at
www.kansaimining.com and on SEDAR. Once the 2008 programme is finished it is
anticipated that the Migori project would proceed to the feasibility study
stage. The Company expects to make a more detailed announcement on Kenya in
the next 3 to 4 weeks.
    This release has been compiled by Mr. Bruce Walsham as CEO of Kansai who
is a qualified person in terms of National Instrument 43-101.

    Kansai Mining Corporation is a mining and exploration company with
interests in Kenya and Venezuela trading on the TSX Venture Exchange under the
symbol KAN.

    The TSX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this news release which has been prepared by

    All statements, other than statements of historical fact, included
herein, including without limitation, statements regarding potential
mineralization and reserves, exploration results and future plans and
objectives of the Company are forward looking statements that involve various
risks and uncertainties. There can be no assurance that such statements will
prove to be accurate, and accurate results and future events could differ
materially from those anticipated in such statements.

    "B.T. Walsham"

    President and Chief Executive Officer

For further information:

For further information: 273 N. Coyote Way, P.O. Box 9, Payson, Arizona,
85547-0009, TEL. (928) 474-9151, FAX (928) 474-8354, Web Site:
www.kansaimining.com, E-MAIL: crom@theriver.com; UK REPRESENTATIVE OFFICE:
Carrswood, Fortescue Road, Salcombe, Devon, TQS SAP, England, Tel *44 1548 843
844, Fax *44 1548 842 378, E Mail: bandcwalsham@btclick.com

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