KGL RESOURCES LIMITED — AGM Information 2005

Nov 23, 2005

KENTOR GOLD LIMITED ABN 52 082 658 080

Corporate Office Level 3, 15 Oneen Street Melbourne Victoria 3000 www.kentorgold.com Tel: +61 (3) 9621 1344 Fax: +61 (3) 9621 1544 E-mail: info@kentorgoid.com

Australian Operations Suite 405, Level 4 9 Sherwood Road Toowong Queensland 4066 $\mathrm{Tel}$ . +61 (7) 3217 8708 +61 (7) 3217 8698 Fax: E-mail: droyle@kentorgold.com.au Kyrgyz Republic 235/2 Erkindik Prospect 720739 Bishkek

$T_{\mathcal{O}}\mathcal{F}$ +996 (312) 621 389 Fax: +996 (312) 665 759 E-mail: kentor2@mail.kg

Chairman's Address to Annual General Meeting

Since listing in March, the Company's activities have been consistent with the objectives as described in the prospectus. Shareholders will be aware that the amount of \$6 million was successfully raised. These funds are now being applied in the further exploration of the Company's tenements in the Kyrgyz Republic as well as on project generation in that country and elsewhere. Since 1998 when the Company was formed, the Company has pursued a vigorous exploration programme and, since 2000, an amount of approximately A\$7 million has been spent in the Kyrgyz Republic. The company has amassed a significant tenement position: in fact, the Company has title to five licenses covering some 3,139km² including the highly prospective 1,800km² Ertash tenement which partially surrounds the existing Kumtor gold mine.

Shareholders will also be aware that our tenement position in the Republic is owned 80% by the Company and the balance held by the State owned Kyrgyz Geophysical Expedition. This is indeed an important and much valued strategic alliance, and joint work to date has seen the application of new technologies and technologically advanced generative approach to the under explored Tien Shan Gold belt in Central Asia. The generative programme has already led to the identification of four highly prospective gold and copper-gold projects. The Tien Shan Gold Belt is under-explored and possesses—and as mentioned in the prospectus—a world class pedigree for gold and porphyry related gold and gold copper deposits. But, of course, in the activity of minerals exploration, only time will tell.

Shareholders will be aware that almost at the same time as our listing on the ASX a socalled mini-revolution occurred in the Kyrgyz Republic. This resulted in the removal of the previous Akayev regime. However, internationally supervised elections took place in July which resulted in the election of Kurmanbek Bakiev as President. It is pleasing to report that President Bakiev's government is supportive of the minerals exploration and mining industry, sees it as a priority industry and seems to well understand the economic benefits which would flow through to the nation in the event of successful mineral development projects. Needless to say, political developments in the country are being closely monitored. Undoubtedly, the country is still undergoing a substantial political transformation from a centrally controlled command economy, under Communist rule, to a market orientated economy. As also mentioned in our prospectus, there can be no guarantee that civil, ethnic or military unrest will not break out again in the future. A word on share price performance—it is indeed disappointing that the Company's share price has, for the main time since listing, traded at levels below the issue price. We believe that the political uncertainties in Kyrgyz Republic earlier this year, which coincided with the timing of the float, would have had a negative impact on shareholder and market sentiment.

However, and in looking to the future, I can report that our drilling programme at Ertash-Akbel is now well underway. As of yesterday we had drilled 860m at Akbel and are now on Hole 3 of a multi hole program. The geologists are seeing many of the right sorts of rocks in the drill core, including extensive pyrite mineralisation, thus indicating that we are drilling in the right sequence and this is an early testimony to the success of the remote exploration technology being applied by our exploration teams. Core from the first holes has been taken to Bishkek and is being cut for submission to the assay laboratory and we look forward to seeing the results in due course. I have to inform you, however, that there is unprecedented demand on laboratory facilities right now, so it may be a little while yet before we receive those results.

While the drilling focus has been at Akbel, we have had significant success at some of our other tenements. At Uzunbalak an extensive alteration zone with porphyry copper style alteration and mineralisation has been identified. At Barkol orogenic structurally controlled alteration and mineralisation has been discovered. We will drill both of these discoveries in due course.

Elsewhere in the country we are following up many other targets identified from our generative work and we will continue to both acquire and relinquish tenements as we expand the search for that prize of a major gold or copper gold ore body.

Whilst the Kyrgyz Republic will remain our core focus, we are mindful that our style of exploration is applicable to opportunities across much of the central Asian region and indeed further afield. Already we have had opportunities presented to us from Turkey to Mongolia and, while nothing has yet proved attractive enough for us to become involved, we will continue to review opportunities as they arise and use our project generation and assessment skills to look for those subtle indications of world class gold deposits across what is still a new exploration frontier.

I will now call on David Royle who will provide you with an overview of our work programme in more detail. However, before doing so, and on behalf of the board, I would like to thank the Staff of Kentor, our partner in the Kyrgyz Republic the Kyrgyz Geophysical Expedition and our contractors for what has been a year of hard work and great progress—we continue to believe that each step we are taking is another one closer to a significant mineral discovery and that we have the team to succeed in this ambition..

John Barr Chairman 24 November 2005