KGL RESOURCES LIMITED — AGM Information 2007

May 23, 2007

KENTOR GOLD LIMITED

ABN 52 082 658 080 Corporate Office Level 3, 15 Queen Street Melbourne Victoria 3000 www.kentorgold.com Tel: +61 (3) 9621 1344 Fax: +61 (3) 9621 1544 E-mail: info@kentorgoid.com

Kyrgyz Republic 235/2 Erkindik Prospect 720739 Bishkek

+996 (312) 621 389 Tel: +996 (312) 665 759 $\text{Fax:}$ E-mail: kentor2@mail.kg

ASX Announcement

Thursday 24 May 2007

ANNUAL GENERAL MEETING - CHAIRMAN'S ADDRESS

Reflecting on the year 2006, the year under review, I have to say, at the outset, that it was disappointing to the Board and Management Team alike that, despite an on-going and active drill programme, the discovery of gold mineralisation at Akbel continued to elude us. A total of 1,525 metres were drilled during the year, leaving, at the end of 2006, a total of 1,475 metres, still to be drilled to complete the 2006 commitment to the Kyrgyz authorities. I am pleased to report that Kentor, in the meantime, has fulfilled its drilling obligations. Drill core from the most recent drill programme is currently being assayed.

Kentor holds at Akbel 365 sq. kilometres of tenement adjoining an already successfully operating gold mine- the Kumtor Mine. To date, our exploration and drilling programme has been designed to discover a continuation of the Kumtor trend into our own tenements. Even though such discovery has eluded us, we have not abandoned hope of finding such extension of the Kumtor trend line and, as of now, the results of the 2006 drilling programme are being carefully evaluated in order to determine where the next stage of drilling at Akbel should be focussed.

Similarly, the possibility of a drill programme at Bashkol is also under consideration by management.

On the subject of drilling, shareholders will be aware that during 2006 we experienced problems associated with the drilling programme at Akbel. We were fortunate in securing access to a larger drill rig, the RD1500, but lengthy delays were experienced in transporting this rig to site from Mongolia. The rig finally reached site only early this year and problems associated with the cross continent transportation of the rig were the principal reason for the delay in finalising the 2006 drilling programme.

We still believe that we are fortunate in holding such a large tenement area in this highly prospective, and largely unexplored, Tien Shan belt of Central Asia. Our search for gold, in Akbel will continue and, indeed, we will continue to seek out other exploration and/or mining opportunities in Kyrgyzstan.

Shareholders often ask us how secure, politically is our investment in Kyrgyzstan. I will call shortly on Mr Hugh McKinnon, our Executive Director, Russian-speaking and resident in Kyrgyzstan, to address you on this subject. Needless to say, as our man in Bishkek, the capital of Kyrgyzstan, Hugh monitors political and economic developments very closely. We are assured that the Kyrgyz authorities fully appreciate the economic significance of a sound, healthy and expanding minerals industry. The role and importance of foreign investment in this context also seems to be well understood and is welcomed. There is certainly an increasing focus by foreign companies on Kyrgyzstan's potential for minerals exploration and mining possibilities.

So, although we have no intention to withdraw from Kyrgyzstan where, since listing, all of our activities have been centred, we have from time to time, given thought to pursue

investment opportunities elsewhere, opportunities which would deliver both geographic and commodity diversification. To this extent, it is pleasing to report that Kentor has recently announced plans to participate in the search for uranium in the Dunmarra basin of the Northern Territory.

Dunmarra Uranium Ltd a new company has now been formed in which Kentor Gold has a 55% interest. As we move into the 21st century, and with the need to manage climate change and global warming issues more effectively in the future, we believe that nuclear energy as a source of clean electricity will become more significant and consequently, we believe that Australia's 3 mines uranium policy will be subject to change. We want to be able to participate successfully at that time. Accordingly, and still in line with this planet's real and on-going need for clean and renewable sources, we have made an application for geo-thermal licences in Kyrgyzstan. We are keen to implement a 'hot rock' exploration programme at the earliest opportunity and to this extent we are in dialogue with world recognised experts in the field.

So the company about which I address you today has a complexion markedly different to that of the organisation about which I addressed you at our last Annual General Meeting, possibly a company in transition. But not only a company with a changed and diversified portfolio of interests, but also a company with a new Managing Director at the helm.

We welcome Simon Milroy warmly to his new post. He brings excellent industry experience, most recently as a member of Pan Australian Resources senior management team. Simon will also address you shortly on his plans for Kentor.

Let me at this stage place on record our appreciation of the valuable contribution made to Kentor by Simon's predecessor, Mr David Royle. David resigned end March for personal reasons and he takes with him our best wishes for all continued success in his future activities.

Looking ahead, we are keen to pursue a meaningful and active exploration programme in respect of gold, uranium and the geothermal "hot rocks". Although the prospects appear to be highly encouraging, there is, of course, in the game of minerals exploration, no guarantee that our exploration efforts will turn up an economically viable mining operation. For this reason therefore, we continue to seek out an advanced project, one which would be taking us many steps closer to a decision to mine. Such projects could be in Australia, Kyrgyzstan or elsewhere. In this regard, it is indeed pleasing to report that, as announced this morning, Kentor has reached agreement with Persues Mining Ltd to earn 70% of the Savoyardy Gold Project in Kyrgyzstan. This is scene as an advanced high grade gold project and Simon will provide more information about Savoyardy in his presentation shortly to you.

In order for us to achieve the corporate objectives referred to in my report, it is important of course that we have access to sufficient and adequate funding. Your board is currently giving thought to a new capital raising option. Exploration, especially when drilling programmes are involved can be costly and we are left, once again with no option but to seek additional funds. We are grateful to Haywood Securities of Vancouver, who supported us in December last year by subscribing \$625,000 thus providing necessary,

and adequate funding at the time, to enable Kentor to complete its drilling obligations in Kyrgyzstan.

Thank you for your support and your interest. We are a company in change and I am looking forward to being able to report more encouraging and positive news to you again in the near future.

It is now my pleasure to call on Hugh McKinnon and Simon Milroy. Firstly Hugh, and Hugh, we thank you also for having acted as Interim Managing Director during the period from David Royle's resignation to Simon's appointment.