KGL RESOURCES LIMITED — Capital/Financing Update 2009

Oct 20, 2009

ASX / MEDIA RELEASE

21 October 2009

Savoyardy Update

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KENTOR GOLD LTD

ACN 082 658 080

Further Indications of Savoyardy High Grade Ore Continuing at Depth

Kentor Gold Limited (ASX Code: KGL) (Kentor or the Company) continues to increase the potential of Savoyardy with deeper high grade drill intersections on Section 2a, some 70 metres below the level of the existing mining drive.

Underground Drilling on Section 2a

On Section 2a, diamond drill hole UD27 returned an intersection of 3.1m at 9.83g/t Au at a depth of 70 metres down hole. This is consistent with the intersection of 2.95m at 7.5g/t Au at a depth of 82m down hole from UD23 on Section 2a.

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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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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 from previous exploration work in the 1970 ’ s.

The drill rigs on site have now completed the planned 9-hole surface drilling program, the planned 7-hole underground drilling program, and a follow-up surface drilling programme of 6 drill holes. Assay results for the final 7 holes are expected over the next month.

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

“ The underground drilling programme has been successful in providing evidence that the high grade mineralisation at Savoyardy ’ s Rudny Prospect continues with depth, increasing expectations that a substantial mining operation can be supported. ”

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 Table of Significant Intersections (>3m*g/t Au)to Date from 2009 Drill Program

Table 1Table	of Significa	nt Intersec	tions (>3	m*g/t Au)t	o Date from	2009 Drill Program
LOCATION	SMPL	FROM	TO	L	Au,g/t	l.m @ C.g/t
SVD_UD_48 Section 2b	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
SVD_UD_23 Section 2b	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
SVD_DD_39 Section5	R40543	18.00	19.10	1.10	3.41	1.1m@ 3.41g/t
SVD_DD_40 Section 5	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
SVD_UD_25 Section 2b	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_DD_36 Section 6	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@5.43
SVD_DD_43 Section 6	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
SVD_UD_24 Section 2b	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_DD_32 Section 4.5	R40800	34.00	35.00	1.00	8.07	1.0m@ 8.07g/t
SVD_UD_26 Section 2a	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 Section 2a	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

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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

• At Andash where Kentor has exercised its option to purchase an 80% interest. Andash is a larger gold-copper project targeted for production in 2011 at the rate of 60,000 oz gold and 5,000 tonnes copper per year for eight years.

• At Savoyardy over which Kentor has an option to purchase 100% of the project. Kentor has completed a pre-feasibility study to examine the potential for bringing the Savoyardy gold project into early production with mine start-up targeted for 2010.

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.

For further information contact:

Mr Simon Milroy Managing Director Phone: (07) 3121 3206 or 0448 851575 Email: info@kentorgold.com.au

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