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Kerr Mines Listed Warrants Trading on a Consolidated Basis

TORONTO, ONTARIO -- (Marketwired) -- 08/05/14 -- Further to its press release of July 25, 2014, announcing the consolidation of its common shares, Kerr Mines Inc. (TSX:KER) ("Kerr") would like to clarify that its listed warrants (the "Warrants") to purchase common shares of Kerr (each a "Kerr Share") began trading on the Toronto Stock Exchange under the new CUSIP 492405147 effective August 1, 2014. As a result of the consolidation, warrant holders will be able to acquire one (1) Kerr Share in exchange for every fifteen (15) Warrants at an exercise price of $5.25 per Kerr Share at any time until October 31, 2014. The adjustment to the exercise price of the Warrants reflects the terms of the Kerr warrant indenture.

This news release contains forward-looking statements, including current expectations on the timing of the commencement of production and the rate of production, if commenced. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, the strength of the Canadian economy; the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; and the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations. Risks and uncertainties about Kerr Mines' business are more fully discussed in the company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. Kerr Mines assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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