KGL RESOURCES LIMITED — Capital/Financing Update 2007

Dec 16, 2007

ASX Announcement

17 December 2007

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KENTOR GOLD LTD

ACN 082 658 080 Registered Office Level 3, 15 Queen Street, Melbourne Victoria 3000 Australia Phone: (03) 9621 1344 Email: info@kentorgold.com.au

Kyrgyz Republic Office 235/2 Erkindik Prospect, Bishkek Kyrgyz Republic 720739 Phone: +996 312 621 389 Email: kentor2@mail.kg

Kentor Gold Placement Completed

Kentor Gold Ltd (ASX:KGL) is pleased to announce that firm commitments have been received for A$1,350,000 from clients of Far East Capital Limited. The placement comprised the issue of 7.5 million fully paid ordinary shares at A$0.18 each.

Far East Capital is an independent Sydney-based private investment bank specialising in the resources sector.

The funds raised will be used to support further exploration and drilling in key company projects including:

• Drilling on the Savoyardy Gold project located near the town of Osh in The Kyrgyz Republic,

• Drilling on the Akbel gold project in the Kyrgyz Republic,

• Exploration of the Yangidavan and Chunkei base metal projects in the Kyrgyz Republic

• Uranium exploration in the Dunmarra basin in the Northern Territory.

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:

Simon Milroy Managing Director, Kentor Gold Ltd Phone: 03 9621 1344 Mobile: 0448 851 575

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