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Sep 20, 2001


September 20, 2001 #01-14

No Stock Exchange Has Approved or Disapproved The Information Contained Herein The Company is pleased to announce that it has closed on $302,667.75, being the first tranche of its public offering to raise $525,000 pursuant to its short form offering document effective September 12, 2001 (the "SFO"). The SFO qualifies the issuance of up to 1,500,000 Units at a price of $0.35 per Unit, and the Company was successful in initially selling 864,765 Units. Each Unit consists of one common share ("Share") and one non-transferable share purchase warrant ("Warrant"); each two Warrants entitling the holder to acquire one additional common share of the Company at a price of $0.45 per share until December 19, 2002. Of the 864,765 Units sold, 22,087 will be subject to a hold period expiring January 19, 2002. The Company has until October 12, 2001 to complete any further tranches under its SFO. The Warrants will be listed as a separate security trading on the CDNX under the symbol "KLM.WT".

The Company paid an aggregate $30,266.78 and issued an aggregate 86,476 Agent's Warrants (each Agent's Warrant entitling the holder to acquire one common share of the Company at $0.45 per share until December 19,2002) as a commission with respect to the initial closing. All shares issued or acquired upon exercise of the Agent's Warrants are subject to a four month hold period (as prescribed by both the Securities Act (British Columbia) and the Canadian Venture Exchange) expiring January 19, 2002.

The Company intends to use the net proceeds of its Offering for general working capital purposes. ON BEHALF OF THE BOARD OF DIRECTORS "D. Neil Briggs" D. Neil Briggs, Director