Kimber Resources, Inc. (KBX)

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Comments: So what's been up with KBX? After a thrilling start following its Amex listing, KBX has been in the crapper since the sell off in Gold in April. Even after Gold recovered during the last few weeks, KBX has continued to trade listlessly sideways on decreased volume, retesting support and testing the patience of its investors severely.

The following issues may have played a role in suppressing Kimber's share price recently:

1. The decision to delay the Prefeasibility study until September in order to complete further drilling work on the Carmen deposit.

2. Recently announced delays in maximizing drilling capacity at the Carotare deposit and the El Orito Norte target due to insufficient road access to the drilling sites.

3. Uncertainty due to continuing political unrest as a result of the contested results of the recent Presidential elections in Mexico.

4. Recent significant insider selling by major investor and Kimber Director Jim Pupluva which may have raised some doubt about the outlook for Kimber.

Despite the above, there is a possibility that September could be a good month for Kimber. Not only are gold and silver starting to perk up heading into September, Kimber's crucial pre-feasibility study for the Carmen deposit is also due out in September, which will give a glimpse at the potential economics of an open pit mine at Carmen.

While the pre-feasibility study is being prepared, the other key to Kimber's success will be the drilling at the Carotare deposit and the El Orito Norte target. Carmen is only 500 meters in length, with Carotare and El Orito Norte adding another 2.5 kilometers to what Kimber speculates will prove to be a continous 3km zone of gold and silver mineralization. Thus, drilling at these two other targets will be critical for Kimber to add additoinal ounces.

I understand that Kimber is currently working on building proper road access to the relevant parts of the drill targets by drilling, blasting and compressing the hard rock that has unfortunately been discovered at these two locations. Mr. Darren Klinck, Vice President, Corporate & Investor Relations, sent me an e-mail on August 21, 2006, in response to my question about the delay, stating that, "We have been drilling and blasting for the past two months and have recently added additional compressors. One drill is now turning on Carotare,with the goal to get two drills running full time at Carotare and El Orito next month [i.e., September]". He added that,"to be clear this is our #1 priority behind delivering the Pre-Feasibility study. We recognize that this is where the greatest chance lies to add ounces and we are moving quickly in this regard."

In the best case scenario, this month would bring promising results from the pre-feasibility study in addition to further positive drilling updates from the Carotare deposit and the El Orito Norte target, all with the backdrop of rising gold and silver prices. Such results would hopefully cause Kimber's share price and trading volume to pick again and bring back some of the excitement Kimber's shareholders enjoyed at the beginning of the year.