KGL RESOURCES LIMITED — Capital/Financing Update 2008

Sep 17, 2008

ASX / MEDIA RELEASE

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KENTOR GOLD LTD

18 September 2008

ACN 082 658 080

Kentor Gold Company Update

Khantau Project

The issues uncovered in the technical and corporate due diligence were significant and coupled with the current turmoil in capital markets, convinced the Board that entering a capital intensive project would not be a prudent use of shareholder’s funds at this time. Kentor Gold has now terminated the Memorandum of Understanding that it had entered in to with Arya Overseas Limited.

Savoyardy Gold Project

The Savoyardy Gold Project drill program continues to return good results from the three diamond drill rigs presently at site. Further assay results are expected to be received in approximately two weeks. The current 4,500m drilling program is expected to be completed around late-October 2008. These drilling results will then be used to produce the first JORC compliant resource estimate for the project.

An Induced Polarisation (IP) survey has just been completed at the site and the results are expected soon. An additional 200 soil samples have been taken from the western end of the licence adjacent to the Majestic Gold exploration licence.

Metallurgical test work has commenced on a bulk sample from Savoyardy. The results of this test work will be available around the end of October.

Geothermal Energy Project

Field work is continuing at the Akshyrak licence where a shallow temperature survey is underway at the site. Investigations and field visits have now taken place in both Tajikistan and Kazakhstan where there are a number of promising areas identified for follow up work. Panax Geothermal Limited (ASX:PAX) are earning 51% equity in this project through the expenditure of US$5m.

Base Metals Exploration Licences

Mapping, trenching and geophysics are underway at Yangidavan, Kurgan and Chaarkuduk licence areas. This work has generated a number of prospective targets which will be followed up by drilling next year.

About Kentor Gold

Kentor Gold Ltd (ASX Code: KGL) is an Australian-based company formed in 1998 as a specialist gold explorer. The Company was listed on the Australian Securities Exchange (ASX) in March 2005 and today is a diversified, international explorer with gold, geothermal and base metals exploration assets in Central Asia.

Kentor Gold’s vision is to build wealth for shareholders through project acquisition, exploration, development and production.

Registered Office Level 36 Riparian Plaza, 71 Eagle St Brisbane 4000 Phone: 61 (0) 7 3121 3206

Kyrgyz Republic Office 235/2 Erkindik Prospect, Bishkek Kyrgyz Republic 720739 Phone: +996 312 621 389

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www.kentorgold.com.au

For further information, visit our website at www.kentorgold.com.au or contact:-

Simon Milroy Managing Director Kentor Gold Ph +61 7 3121 3206 info@kentorgold.com.au

Media : Anna O’Gorman Principal Consultant - Three Plus Ph +61 7 3503 5700 annao@threeplus.com.au

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