KGL RESOURCES LIMITED — Capital/Financing Update 2007

Jul 12, 2007

13[th] July 2007

==> picture [89 x 82] intentionally omitted <==

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

www.kentorgold.com.au

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

ASX Announcement

ISSUE OF EXECUTIVE OPTIONS

The directors of Kentor Gold Limited (other than Simon Milroy and Hugh McKinnon) have agreed to issue options to the two executive directors of the company as part of their remuneration packages as shown below.

It is a condition of the issue of options to directors that in accordance with Part 2E.1 of the Corporations Act and Rules 7.1 and 10.14 of the Listing Rules of the Australian Stock Exchange, the Company will obtain the approval of shareholders. This approval will be sought at the Company’s next general meeting of shareholders.

The performance conditions to apply to this issue of options reflect the objective of the directors to align the remuneration of senior executives with the creation of shareholder wealth.

Simon Milroy – Managing Director to be granted 2,000,000 unlisted options to acquire ordinary shares in the company as follows:

• 700,000 options - the exercise price of the options to be A$0.20 and the options to be exercisable at any date following a continuous 30 calendar day period when the Kentor share price has traded at A$0.25 [per share ?]or above; plus

• 650,000 options - the exercise price of the options to be A$0.25 and the options to be exercisable at any date following a continuous 30 day calendar period when the Kentor share price has traded at A$0.30 or above; plus

• 650,000 options - the exercise price of the options to be A$0.30 and the options to be exercisable at any date following a continuous 30 day calendar period when the Kentor share price has trade at A$0.40 or above.

Hugh McKinnon – Executive Director to be granted 900,000 unlisted options to acquire ordinary shares in the Company as follows:

• 300,000 options - the exercise price of the options to be A$0.20 and the options to be exercisable at any date following a continuous 30 day calendar period when the Kentor share price has traded at A$0.25 or above; plus

• 300,000 options - the exercise price of the options to be A$0.25 and the options to be exercisable at any date following a continuous 30 day calendar period when the Kentor share price has traded at A$0.30 or above; plus

• 300,000 options - the exercise price of the options to be A$0.30 and the options to be exercisable at any date following a continuous 30 day calendar period when the Kentor share price has trade at A$0.40 or above.

For further information contact: Mr Simon Milroy Managing Director Phone: (03) 9621 1344 or 0448 851575 Email: info@kentorgold.com.au

Page 1 of 1