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KGL RESOURCES LIMITED Capital/Financing Update 2009

Nov 15, 2009

65179_rns_2009-11-15_12bcceb9-23dd-4b72-9e14-45896d46fe28.pdf

Capital/Financing Update

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ASX / MEDIA RELEASE

16th November 2009

Savoyardy Update

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KENTOR GOLD LTD

ACN 082 658 080

Final Assay Results Received for 2009 Savoyardy Drill Programme

Kentor Gold Limited (ASX Code: KGL) (Kentor or the Company) has now received final assay results from diamond holes drilled in the 2009 programme of exploration and infill drilling. The final batch of assay results received confirms the high grade potential of the area of the Rudny Prospect. Preparations are now being finalised for recalculation of the resource using the full set of assay results.

Surface Drilling on Section 1.5

On Section 1.5, diamond drill hole DD52 returned intersections of 2.3m at 5.03g/t from a depth of 43.7 metres down hole and 0.5m at 42.6g/t from a depth of 58.5m.

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Surface Drilling on Section 2a

On Section 2a, diamond drill hole DD51 returned the following intersections:

  • 2.3m at 4.73g/t from a depth of 36.7m downhole

  • 1m at 3.3g/t from a depth of 40m downhole

  • 1m at 4.35g/t from a depth of 48m downhole

  • 2.3m at 22.53g/t from a depth of 50m downhole

  • 1.3m at 28.88g/t from a depth of 83.6m downhole and

  • 1m at 29.5g/t from a depth of 90.5m downhole

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

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Surface Drilling on Section 2.5

On Section 2.5, diamond drill hole DD46 returned an intersection of 0.7m at 9.86g/t at a depth of 62 metres down hole, DD47 returned an intersection of 0.8m at 5.5g/t at a depth of 45.5 metres down hole, and DD48 returned an intersection of 1m at 10.9g/t at a depth of 40 metres down hole.

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Surface Drilling on Section 3.5

On Section 3.5, diamond drill hole DD49 returned an intersection of 1m at 4.54g/t at a depth of 62 metres down hole (previously reported), and DD50 returned no significant results.

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At Savoyardy, surface and underground diamond drilling commenced in July with the aim of extending and upgrading the existing Resource. Extensive underground access is available

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from previous exploration work in the 1970 ’ s. Seven holes were drilled from underground and 15 from surface for a total of 1,784 metres.

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Commenting on the latest results, Kentor Managing Director, Simon Milroy, said:

“ The 2009 drilling programme at Savoyardy has increased our confidence in the existing resource, and added potential at depth and along strike with some high grade intersections. We anticipate completing a revised resource estimate for the project in December. ”

Background

The Savoyardy Gold Project is located approximately 145 kilometres south-east of the city of Osh in the Kyrgyz Republic. The Savoyardy project is also adjacent to and along strike from the Sawayerdun Project in the Xinjiang Province of China. Majestic Gold Corporation announced a resource of 1.5Moz of gold from the results to date and Canadian listed GobiMin has recently announced its commitment to farm into the project.

Exploration trenches and adits constructed at Savoyardy in the 1970 ’ s show the presence of high grade gold and antimony contained in a number of structures with widths of up to 27m. The mineralised structures can be traced for over 7 kilometres to the south-west along strike where it meets the Savoyardy exploration licence at the Chinese border.

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Table 1 Significant Intersections (>3m*g/t Au) to date from 2009 Drill

Programme Programme Programme Programme Programme Programme
SECTION DRILL HOLE SMPL FROM TO L Au.g/t l.m@ C.g/t
1.5 SVD_DD_52 R41477 43.70 44.00 0.30 6.65 2.3m @ 5.03g/t
R41478 44.00 44.50 0.50 4.00
R41479 44.50 45.00 0.50 4.10
R41480 45.00 45.50 0.50 3.57
R41481 45.50 46.00 0.50 7.46
R41494 58.50 59.00 0.50 42.60 0.5m@ 42.60g/t
2a SVD_UD_26 R32132 44.00 44.70 0.70 8.89 0.7m@ 8.89g/t
R32142 53.20 53.80 0.60 6.04 0.6m@ 6.04g/t
R32152 60.70 61.00 0.30 22.00 0.3m@ 22.0g/t
SVD_UD_27 R32248 70.00 70.50 0.50 3.30 3.1m @ 9.83g/t
R32249 70.50 71.00 0.50 3.51
R32250 71.00 71.50 0.50 15.50
R32251 71.50 72.00 0.50 6.21
R32252 72.00 72.50 0.50 6.74
R32253 72.50 73.10 0.60 21.40
SVD_DD_51 R41162 36.70 37.70 1.00 5.89 2.3m @ 4.73g/t
R41163 37.70 39.00 1.30 3.83
R41165 40.00 41.00 1.00 3.30 1.0m@ 3.3g/t
R41173 48.00 49.00 1.00 4.35 1.0m@ 4.35g/t
R41175 50.00 51.00 1.00 36.60 2.3m @ 22.53g/t
R41176 51.00 52.30 1.30 11.70
R41208 83.60 84.40 0.80 32.50 1.3m @ 28.88g/t
R41209 84.40 84.90 0.50 23.10
R41215 90.50 91.50 1.00 29.50 1.0m@ 29.50g/t
2b SVD_UD_23 R31875 81.80 82.80 1.00 9.53 2.95m @ 7.48g/t
R31876 82.80 83.80 1.00 4.00
R31877 83.80 84.75 0.95 8.98
R31893 99.00 100.00 1.00 3.26 1.0m@ 3.26g/t
SVD_UD_24 R31971 48.00 49.00 1.00 9.61 1.0m@ 9.61g/t
R31993 67.90 68.40 0.50 6.85 0.9m @ 11.3g/t
R31994 68.40 68.80 0.40 16.80
SVD_UD_25 R32062 67.50 68.00 0.50 10.90 2.3m @ 19.73g/t
R32063 68.00 69.00 1.00 28.40
R32064 69.00 69.80 0.80 14.40
SVD_UD_48 R31733 44.50 45.00 0.50 10.70 1.9m @ 7.05g/t
R31734 45.00 46.00 1.00 6.43
R31735 46.00 46.40 0.40 4.1
R31758 68.50 69.50 1.00 6.671 1.0m@ 6.67g/t
R31774 82.00 83.00 1.00 3.78 4.05m @ 5.7g/t
R31775 83.00 83.50 0.50 7.44
R31776 83.50 84.00 0.50 15.20
R31777 84.00 85.00 1.00 3.98
R31778 85.00 85.90 0.90 2.6
R31779 85.90 86.05 0.15 10.00
2.5 SVD_DD_46 R41558 62.00 62.40 0.40 4.51 0.7m @ 9.86g/t
R41559 62.40 62.70 0.30 17.00
SVD_DD_47 R41404 45.50 46.30 0.80 5.50 0.8m@ 5.5g/t
SVD_DD_48 R41350 40.00 41.00 1.00 10.90 1.0m@ 10.9g/t
3.5 SVD_DD_49 R41107 35.00 36.00 1.00 4.54 1.0m@ 4.54g/t
SVD_DD_50 No significant intersection
4.5 SVD_DD_32 R40800 34.00 35.00 1.00 8.07 1.0m@ 8.07g/t
5 SVD_DD_39 R40543 18.00 19.10 1.10 3.41 1.1m@ 3.41g/t
SVD_DD_40 R40627 51.00 52.00 1.10 9.45 3.0m @ 16.2g/t
R40628 52.00 53.20 1.20 14.70
R40629 53.20 54.00 0.80 26.80

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Table 1 (continued) Significant Intersections (>3m*g/t Au) to date from 2009 Drill Programme

SECTION DRILL HOLE SMPL FROM TO L Au.g/t l.m@ C.g/t
6 SVD_DD_36 R40938 12.00 12.70 0.70 18.60 6.0m @ 9.91g/t
R40939 12.70 14.00 1.30 3.28
R40940 14.00 15.00 1.00 2.29
R40941 15.00 16.00 1.00 10.10
R40942 16.00 17.00 1.00 18.00
R40943 17.00 18.00 1.00 11.80
R40948 22.00 23.00 1.00 5.43 1.0m@ 5.43g/t
SVD_DD_41 No significant intersection
SVD_DD_42 No significant intersection
SVD_DD_43 R41035 62.50 63.00 0.50 22.90 3.5m @ 9.77g/t
R41036 63.00 64.00 1.00 8.22
R41037 64.00 65.00 1.00 5.44
R41038 65.00 66.00 1.00 9.07
6.5 SVD_DD_44 No significant intersection
SVD_DD_45 No significant intersection

About Kentor Gold

Kentor Gold Limited (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 has diversified into exploration for gold, geothermal energy and base metals in Central Asia, where it has highly regarded, established local management.

Kentor is working towards the development of two gold mines in the Kyrgyz Republic:

  • Andash, targeted for production in 2011 at the currently planned rate of 60,000 oz gold and 5,000 tonnes copper per year for eight years - and

  • Savoyardy, proposed to commence in 2010 at the initial rate of 10,000 oz gold per year for a minimum three years subject to final decision later this year - Kentor has an option to purchase 100 per cent of the project.

For further information, visit the Kentor website at www.kentorgold.com.au or contact:

Mr Simon Milroy Managing Director Phone: (07) 3121 3206 or 0448 851575 Email: [email protected]

Mr David Waterhouse Investor Relations Ph (03) 9670 5008

Competent Persons Statement:

The exploration results in this report are based on information compiled by Simon Milroy, who is a member of the Australasian Institute of Mining and Metallurgy and a full time employee of Kentor Gold Limited. Mr. Milroy has sufficient experience which is relevant to the style of the mineralisation and the type of deposit under consideration and to the activity to which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Milroy has consented to the inclusion of this information in the form and context in which it appears in this report.

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