KGL RESOURCES LIMITED — Capital/Financing Update 2006

Dec 14, 2006

KENTOR GOLD LTD

ACN DR2 658 DRB Registered Office: Level 3, 15 Queen Street Melbourne Victoria 3000 www.kentorgold.com.au

Australia Suite 405 Level 4 9 Sherwood Road Toowong Queensland 4066 Phone: $+61(7)32178708$ $+61(7)32178698$ Fax: E-mail: droyle@kentorgold.com.au Kyrgyz Republic 235/2 Erkindik Prospect 720739 Bishkek +996 (312) 621 389 Phone: $F_{\rm MX}$ +996 (312) 665 759 ......
E-mail: kentor2@mail.kg

ASX ANNOUNCEMENT

15 December 2006

PLACEMENT RAISES A\$625,000

Kentor Gold Ltd (ASX:KGL) is pleased to announce that it has raised A\$625,000 by way of a placement to a number of clients of Haywood Securities Inc of Vancouver, Canada, including employees of that firm investing on their own account. The placement comprised the issue of 5 million fully paid ordinary shares at A\$0.125 each, together with a further 2.5 million options to be issued, subject to shareholder approval at Kentor's next AGM scheduled for May 2007. Those options, if approved, will be exercisable within 2 years of their issue date, being exercisable at A\$0.20 per share within 12 months and at A\$0.30 per share in the second year.

Haywood Securities Inc is a Canadian investment dealer with offices in Vancouver, Calgary and Toronto. The firm is a member of the Toronto Stock Exchange, the TSX Venture Exchange, the Montreal Exchange, the Canadian Trading and Quotation System, the Canadian Investor Protection Fund, and the Investment Dealers Association of Canada.

This placement both broadens the Company's shareholder base and gives Kentor an exposure to Haywood's extensive network of North American and European resources investors at a relatively low cost of entry.

The funds raised will enable Kentor to continue its drill assessment well into 2007 of the highly prospective Akbel Project immediately "on trend" from the multi million ounce Kumtor gold deposit in south-eastern Kyrgyzstan.

The Company seeks to rely on Section 708A (5) of the Corporations Act ("the Act") in respect of the issue of these shares.

In accordance with Section 708A (5) (e) of the Act, the Company gives notice that it has issued these shares without disclosure to the placees under Part 6D.2 of the Act. As at the date of this notice the Company has complied with:

• The provisions of Chapter 2M of the Act as they apply to the Company; and
• Section 674 of the Act

As at the date of this notice there is no excluded information (as defined in Section 708A (7) of the Act) which is required to be disclosed by the Company.

For further information contact: Bruce Paterson David Royle Managing Director Company Secretary Kentor Gold Ltd. Kentor Gold Ltd. 0412 064 374 O410 402 616

Company background: Kentor Gold Ltd is a listed Australian (ASX code "KGL") specialist gold explorer focused on the highly prospective Tien Shan belt in the Kyrgyz Republic in Central Asia. Kentor is undertaking an aggressive gold exploration program around the Centerra owned Kumtor gold mine together with an active and successful project generation program elsewhere in the Kyrgyz Republic. For further information on Kentor visit www.kentorgold.com