VANCOUVER, July 7 /CNW/ - Kimber Resources Inc. (TSX:KBR) Discovery of El Orito Norte The most significant development in June was the identification (announced June 28) of a third epithermal system on the Monterde property, the "El Orito Norte", between the Carmen and the Carotare. This is important for two reasons: First, an epithermal system which is wider than the Carmen but with the same geologic characteristics has a very reasonable chance of hosting another gold-silver deposit. Second, the aggregate size of the three epithermal systems identified to date (at least three kilometres east-west and open to the north) suggest that the Monterde property (now 28,000 hectares) could well belong in the same league as our neighbours, Mulatos, Dolores, and Ocampo, which are reporting three, five, and seven million resources ounces respectively. El Orito Norte was found by following-up gold mineralization intersected near an old adit in 2003. That intercept was not sufficient to prompt interest at the time but, traced to the north, the zone widens from four metres to about 80 metres. Both the location of the new zone (between Carmen and Carotare) and the presence of a rock type (breccia) which is associated with better grades on the Carmen deposit are particularly encouraging. Underground Potential Although there used to be a small underground mine on what we now call the Carmen deposit, and although some of the grades we have obtained from drilling would be suitable for underground mining, we have let the underground potential be masked by the more obvious open pit possibilities. It is now time to point out that the characteristics of the zone we have been drilling establish it as a high level epithermal system. Typically mineralization continues to depth below such systems. We are considering drilling deeper holes to establish the underground potential. An underground operation such as Gammon Lake are planning at Ocampo could, in principal, be operated at the same time as an open pit mine. Congratulations to Minefinders We congratulate Minefinders, our neighbours in the Sierra Madre, on reaching feasibility. In the northern Sierra Madre belt there is now one deposit (El Sauzal) which has reached production, and three which have reached feasibility. Two of those already plan production. Market valuations Market capitalizations for gold companies at the resource development stage typically range between US$30 and US$50 per resource ounce. With approximately one million gold-equivalent resource ounces (about 2/3 Measured & Indicated, 1/3 Inferred) at US$45 per resource ounce, Kimber's share price on the basis of the 34 million issued shares would be C$1.65 plus whatever value is put on exploration potential. Recognising that about half of the value in the Carmen deposit is in silver prompts calculation of its valuation as a silver company. The market typically places higher values on silver companies than on gold companies. Using a BMO Nesbitt Burns study from April 2005, Kimber, as a silver company, would be valued just below the average of US$1.11 per resource ounce of silver. This does not take into account any of Kimber's gold resources. Abraham Urias We congratulate Abraham Urias, a key member of our team, and an officer of Kimber Resources de Mexico S.A. de C.V. on his appointment by the Government of the State of Sinaloa as an Advisor on Mining Financing and Promotion. Management's Vision for Kimber Kimber aspires to market valuations at least comparable to those of its neighbours in the Sierra Madre gold belt. In addition to taking the Carmen to feasibility, this requires finding a multiple of the number of resource ounces Kimber is now reporting. We regard recent developments on the Monterde property as encouraging milestones on the way to this goal. Robert Longe, P.Eng. President & CEO Statements in this release may be viewed as forward-looking statements. Such statements involve risks and uncertainties that could cause actual results to differ materially from those projected. There are no assurances the Company can fulfil such forward-looking statements and the Company undertakes no obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing the Company, some of which are beyond the Company's control. %SEDAR: 00017718E