KGL RESOURCES LIMITED — Capital/Financing Update 2007

May 30, 2007

ASX Announcement

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

31 May 2007

NOTICE UNDER ASX LISTING RULE 3.10.3

At Kentor Gold Limited's ("Company") Annual General Meeting on 24 May 2007, the members passed a resolution that approved the Company allotting and issuing up to 20,000,000 new ordinary shares no later than 3 months after the date of that meeting.

In accordance with ASX Listing Rule 3.10.3, where a Company proposes to make an issue of securities (other than a bonus or pro rata issue), the Company is required to give the ASX certain information. The information is as follows:

Requirement of LR 3.10.3	Details
Class of securities to be offered	Fully Paid Ordinary Shares.
Number of securities to be offered	Up to 20,000,000.
Principal terms of the securities to be offered	The shares will be fully paid ordinary shares and will rank equally with existing fully paid ordinary shares in the Company in all respects. The Company will as soon as possible after the date of issue apply for the shares to be quoted on the ASX.
Issue Price	The shares shall be issued at an issue price to be determined by the Company in its absolute discretion but in any event not less than 80% of the average market price of ordinary shares in the capital of the Company trading on ASX during the 5 days in which sales were recorded before the date of the issue.
Purpose of the Issue	The Company intends to use the funds raised from the issue of the shares for the purpose of enabling the Company to continue its exploration activities in the Republic of Kyrgyzstan and elsewhere in the Tien Shan belt of Central Asia and otherwise for the working capital requirements of the Company.
Whether security holder approval in relation to the proposed issue will be sought	The security holders of the Company approved the issue of the new shares at the Annual General Meeting on 24 May 2007.
Whether the issue will be to a class of securities holders	The identity of the allottees is not known at this point in time.

Yours faithfully

Bruce J. Paterson Company Secretary