Kentor Gold Ltd

ACN 082 658 080

26 May 2011

Kentor Gold Limited (ASX: KGL) is an Australian-based company engaged in the exploration and development of gold, base metals and geothermal energy in Central Asia where it has highly regarded, established local management. Kentor Gold owns 80% of the Andash Gold-Copper Project which is under development in the Kyrgyz Republic and is targeted to produce annually70,000 oz gold and 7,400 tonnes copper in concentrate. Kentor Gold is also targeting early production at goldcopper projects in Western Australia and the Jervois multimetals project in the Northern Territory.

Annual General Meeting Addresses

The following addresses will be given by the Chairman and Managing Director at today’s Annual General Meeting.

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Issued capital:

1,062.1 million ordinary shares 58.1 million unlisted options

Market Capitalisation

For further information contact:

Mr Simon Milroy Managing Director Phone: (07) 3121 3206 Email: [email protected]

(25 May. 2011): $103 million

Kentor Gold Ltd ACN 082 658 080

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CHAIRMAN’S ADDRESS TO THE ANNUAL GENERAL MEETING OF KENTOR GOLD LIMITED, MELBOURNE, 1 P.M. 26 MAY 2011

At the outset, Ladies and gentlemen, let me state that I am pleased to report that Kentor Gold is now well advanced in the transition from explorer to producer, at the same time growing its asset base and diversifying its interests. I can also, report, at the outset that the Andash Project remains our main focus of interest.

With the Andash gold-copper project in the Kyrgyz Republic, which we acquired less than 18 months ago, we are ready, and have been ready for some time now, to proceed to full-scale development. We have also secured the nearby Aktash Project which has the potential to be a high grade satellite mine and consequently, to expand and extend the Andash project. While our main focus continues to be the development of Andash, we achieved an important measure of geographic diversification only this month when we acquired the Jinka Minerals assets in Australia, giving us opportunities for early gold and copper production in this country.

The acquisition of Andash as an advanced project set us on the road to becoming a mid-tier gold producer from one of the world’s lowest cost gold mines. As I reported in the recent annual report, the fundamental strengths of the Andash project were confirmed last year by our intensive work in preparing an updated Definitive Feasibility Study and by subsequent enhancements that reduced capital cost and lowered the total production cost of gold to an exceptional US$29 an ounce, after copper credits. The project’s favourable economics have been improved even further by the rises in gold and copper prices.

As most of you will be aware, the development of Andash was delayed last year due to the political upheaval in the Kyrgyz Republic in April 2010. The country has since emerged from that crisis with a parliamentary democracy that provides a basis for stability and economic growth. However, it has been a tentative process for a new, young government in an entire region of the world with no previous experience of parliamentary democracy.

Last month your directors visited the Kyrgyz Republic where Kentor Gold has had a long standing presence.

The visit gave us a better understanding of the government and community issues relating to delays in the development of Andash. Despite community issues, to which I will shortly refer, we were nevertheless encouraged by the support for mining from within the central government.

However, as we reported in detail in an update to the market last week, it has now become apparent that there will, most likely, be an ongoing delay to the development timetable. Whereas we had been expecting to have site works at Andash underway by the middle of this year we now believe that the site will be accessed later in calendar 2011 thus representing a delay of several months. The construction schedule still provides for commissioning to commence 12 months from site access.

The principle reason for this delay is that a vocal minority in the local community, where Andash is located, oppose the development of the project, and as yet the village council has not agreed that Kentor should have site access to enable development work to commence. We believe however that the Company will be able to overcome this opposition by a continuing direct communication process with local people and continuing representation at all levels of local and central government.

Kentor Gold Ltd ACN 082 658 080

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I can report that central government factors ie. the need for an updated environmental and social permit and the completion of a report by a parliamentary commission reviewing the Andash project – are not holding up the commencement of site works. Construction permits will however need to be obtained for each section of the project but are considered to be routine in nature.

Your directors strongly believe that the Andash development will proceed and will become one of the world’s lowest cost gold projects. I can’t emphasise this enough. I want you to also to know that we are all frustrated by the delay but believe that the Kyrgyz Government is now addressing the outstanding issues in order to provide the necessary support to enable construction to commence.

Late last year, investors provided enthusiastic support for your Company and the Andash project in a successful $65M equity raising. We were pleased to offer shareholders 80% of the capital raising as a rights issue which was well supported. This was followed early this year when the Company accepted a Committed Letter of Offer from Macquarie Bank for a US$50M debt facility, thus completing the funding for the construction of Andash.

Our overriding strategy is still to acquire advanced projects and progress them through exploration and development to production. A recent example of this is Jinka Minerals. Our strong financial position has enabled Kentor Gold to fund from our cash reserves the $12.8M required to purchase Jinka Minerals. Our Managing Director Simon Milroy will shortly say more about Jinka. Let me say that we now have in Australia advanced gold and copper projects which are expected to provide opportunities for early gold production and longer term mining of gold, silver and base metals on a substantial scale.

On behalf of the board, I would like to thank Simon and Hugh McKinnon, our Executive Director in the Kyrgyz Republic, for their continuing executive leadership. I also extend the board’s appreciation to the company’s staff in Australia and the Kyrgyz Republic for their contributions to your Company’s progress.

May I take the opportunity of thanking my fellow directors for their support during the past year.

Let me say that within the board and staff of Kentor Gold, there is assembled an impressive collection of technical, project development, commercial, financial and strategic skills and experience. I can assure shareholders that the Company is in good hands.

Finally, I extend the thanks of directors to you, the shareholders, for your continuing support of the Company.

Kentor Gold Ltd ACN 082 658 080

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Ladies and gentlemen, may I remind you of the position of Kentor Gold. We have assets of outstanding value –

Andash, a high grade, extremely low cost gold-copper deposit in one of the great gold regions of the world, the Tien Shan Belt, an advanced project that is fully funded and ready for development notwithstanding the delays I have detailed,
the high potential for high grade, large scale expansion of Andash,
and excellent Australian gold-copper projects with genuine early production potential, and,
strong cash position

This is a strong company that can face the future with confidence.

I now ask Simon Milroy to report further on the activities of the Company