07/21/2005- Encouraging Macrodiamond Results

[Franko10 ™]

Kensington Resources Ltd.: Encouraging Macrodiamond Results for Fort a la Corne Kimberlite 122 (bwire)


VANCOUVER, British Columbia (Business Wire) -- Kensington Resources Ltd. (the "Company") (TSX VENTURE:KRT) announces encouraging macrodiamond recoveries from minibulk sampling at Kimberlite 122 in 2004. A total of 248 macrodiamonds weighing 28.81 carats, including 23 stones larger than 0.25 carats, were recovered from three 36-inch (914 mm) diameter drillholes located on Kimberlite 122 during the 2004 minibulk sampling program on the Fort a la Corne Diamond Project in Saskatchewan.

"The recovery of many stones larger than 0.25 carats and two larger than one carat supports our model of a larger stone population in Kimberlite 122," states Robert A. McCallum, President & CEO of Kensington Resources Ltd. "Diamond recoveries and actual sample grades for stones in the +5 and higher sieve categories from 2004 are comparable to those seen in 2000, although the total carats recovered last year fell short of program expectations. Macrodiamonds recovered in the 2000 program were of high quality and we look forward to receiving the valuations for the 2004 macrodiamonds."


Table 1: Actual 2004 Macrodiamond Recoveries from Kimberlite 122

--------------------------------------------------------------------
Est.
# of
Diamonds
greater
than
Actual 0.25
Exca- cts.
Main Sample vated Drill- Drill- (larg-
Kimber- Inter- Mass hole hole est
Drill- lite val (tonnes) Total Grade Total stones/ stone)
hole Unit (metres) (1) Carats (cpht) Stones tonne (2)
--------------------------------------------------------------------
04-122-
016 122 98.57 166.82 5.565 3.34 43 0.26 4
South stones
MPK (1.01
cts.)
--------------------------------------------------------------------
04-122
-018 122 178.56 312.68 11.990 3.84 90 0.29 12
South stones
MPK (1.11
cts.)
--------------------------------------------------------------------
04-122
-021 122 151.45 257.89 11.255 4.36 115 0.45 7
South stones
MPK (0.73
cts.)
--------------------------------------------------------------------
04-122
-015 122 1.20 1.81 0 n/a 0 n/a 0
South
MPK
--------------------------------------------------------------------
Total/
Avg. 429.78 739.20 28.810 3.90 248 0.33 23
stones
--------------------------------------------------------------------
(1) The calculation of actual mass was based on interval borehole
volume measured by a 3-arm caliper tool and a kimberlite rock
density of 2.5.

(2) Diamond weights were provided in terms of total carats per sieve
class. The reader is cautioned that for interval samples (12 metres)
with multiple stone recoveries, the number of stones greater than
0.25 carats was estimated by dividing carat weight by the number of
stones in the sieve class.



Four large diameter minibulk sampling holes were targeted on Kimberlite 122 in order to expand the parcel of diamonds from this body so that confidence levels in grade and revenue estimates could be increased. The total estimated mass of kimberlite excavated from body 122 in 2004 was 739.2 tonnes of which 318.1 tonnes of material greater than 1.5 mm in size was retained for macrodiamond recoveries. All four drillholes primarily sampled the main, massive to bedded pyroclastic kimberlite unit (MPK). Minibulk samples were shipped to the De Beers' dense media separation plant located in Grande Prairie, Alberta for the first stage of diamond recovery procedures, followed by final diamond recovery in an ultra-high security facility in Johannesburg, RSA.

Macrodiamond recoveries for the three main drillhole intersections are reported by sieve size category in Table 2. Drillhole 04-122-015 was lost at a depth of 106.6 metres after cutting only 1.2 metres of kimberlite due to loss of steel downhole.

Table 2: Summary of 2004 Macrodiamond Recovery from Kimberlite 122 by Sieve Size Category


-------------------------------------------------------------------
+5 Sieve +6 Sieve +7 Sieve +9 Sieve +11 Sieve
-------------------------------------------------------------------
Drill- sto- car- sto- car- sto- car- sto- car- sto- car-
hole nes ats nes ats nes ats nes ats nes ats
-------------------------------------------------------------------
04-122-
016 8 0.440 12 1.065 4 0.440 3 0.765 4 1.035
-------------------------------------------------------------------
04-122-
018 22 1.110 17 1.340 15 1.945 16 3.405 6 2.165
-------------------------------------------------------------------
04-122-
021 33 1.570 19 1.505 13 1.805 13 2.230 4 1.375
-------------------------------------------------------------------
Total: 63 3.120 48 3.910 32 4.190 32 6.400 14 4.575
-------------------------------------------------------------------


-------------------------------------------------------------------
+12 Sieve +13 Sieve +15 Sieve +17 Sieve
Drill- sto- car- sto- car- sto- car- sto- car-
hole nes ats nes ats nes ats nes ats
-------------------------------------------------------------------
04-122-
016 1 0.550 0 0 1 1.015 0 0
-------------------------------------------------------------------
04-122-
018 0 0 1 0.630 0 0 1 1.110
-------------------------------------------------------------------
04-122-
021 1 0.560 2 1.395 0 0 0 0
-------------------------------------------------------------------
Total: 2 1.110 3 2.025 1 1.015 1 1.110
-------------------------------------------------------------------



Minibulk sampling programs in 2000 and 2004 differed in the bottom cut-off size for macrodiamonds utilizing a 1.0 mm screen in 2000 versus a 1.5 mm screen in 2004. A comparison of the results from these two programs, including a recently revised map of Kimberlite Body 122 showing location of the 2004 drillholes, is posted on the Company's website at www.kensington-resources.com.

The 2004 Evaluation Program (CDN $7.6 million) included ten large diameter minibulk drillholes positioned on high-grade zones in Kimberlites 140/141 and 122. Samples and results from the 122 drillholes are the last of the 2004 macrodiamond results to report. Minibulk samples collected in this program will provide additional diamonds to the 122 parcel. Additional information related to the 2004 macrodiamond recovery include reports on diamond characterization, breakage, and valuation. Together, this data will be used to increase the level of confidence in grade forecasts and revenue modeling by De Beers' experts. Relevant aspects of these reports will be disclosed as they are received from the project operator, De Beers Canada Inc.

Brent C. Jellicoe, P.Geo. is the Qualified Person for the Company and has reviewed the technical information herein. All aspects of quality assurance, quality control, and sample chain of custody for the Fort a la Corne Joint Venture are managed by De Beers Canada Inc., the project operator.

Kensington Resources Ltd. is an exploration and mine development company currently focused on the high potential Fort a la Corne Diamond Project in Saskatchewan. The management team includes strong technical expertise and is committed to reaching a diamond producer status for the realization of shareholder value. The Fort a la Corne Diamond Project is a joint venture among Kensington Resources Ltd. (42.245%), De Beers Canada Inc. (42.245%), Cameco Corporation (5.51%) and UEM Inc. (carried 10%). After fifteen years of exploration at Fort a la Corne, the joint venture partners have entered into an accelerated results-driven advanced exploration and evaluation phase targeted on reaching a pre-feasibility decision in 2008. The Fort a la Corne Diamond Project includes 63 identified kimberlite bodies within the largest diamondiferous kimberlite cluster in the world.

Robert A. McCallum, President & CEO

FORM 20-F FILE #0-24980

LISTED IN STANDARD & POOR'S

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Kensington Resources Ltd. (TSX VENTURE:KRT)

Kensington Resources Ltd.
Robert A. McCallum
President & CEO
1-800-514-7859 or [phone]
Fax: [phone]
[e-mail]
OR
Kensington Resources Ltd.
Mel Gardner
Manager Investor Relations
1-800-710-6083
[e-mail]
www.kensington-resources.com