KGL RESOURCES LIMITED — Capital/Financing Update 2009

Oct 11, 2009

ASX / MEDIA RELEASE

12 October 2009

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KENTOR GOLD LTD

ACN 082 658 080

KENTOR GOLD AWARDS DEFINITIVE FEASIBILITY STUDY OF ANDASH GOLDCOPPER PROJECT TO GRD MINPROC

 Targeting production in 2011

Kentor Gold Limited (ASX code: KGL) (Kentor or the Company) has engaged the Australianbased international engineering company GRD Minproc to undertake a definitive feasibility study into the high grade Andash gold-copper project in the Kyrgyz Republic.

Andash is targeted for production in 2011 at the average annual rate of 60,000 oz gold and 5,000 tonnes copper for eight years, based on the bankable feasibility study completed by Wardell Armstrong of the UK in 2007.

GRD/Minproc will update and optimise the study by March 2010, with the aim of improving gold recovery and concentrate grades.

Kentor holds an option to purchase an 80% interest in Andash.

Commenting on the announcement, Kentor Managing Director, Simon Milroy said:

• “ Kentor ’ s financial, technical and legal due diligence on Andash has shown the project to be economically robust and technically feasible.

“ The previous study points to low costs and high margins. However, we need to refresh the capital and operating cost estimates and believe that there is potential to improve the metallurgical performance through finer grinding and the use of different reagents. ”

“ With our long established, highly regarded, on-the-ground presence in the Kyrgyz Republic, we are well placed to develop Andash. ”

Andash is located in the Tien Shan Gold Belt, one of the world ’ s major gold provinces spanning central Asia.

• Encouraging results from initial exploration near the current resource indicate the potential for considerable expansion and mine life extension.

• The purchase price of US$10M for the Project under the option equates to US$10/oz gold equivalent.

• The cash cost from the previous study estimated an operating cost of US$223/oz gold equivalent.

• The low production cost is due to the near surface deposit with a proposed strip ratio of 0.8:1, simple processing and existing infrastructure including low cost power and an available workforce.

• A separate option has been secured to purchase an already assembled mining and construction fleet for US$5M.

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

About the Company:

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 considering 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 - Kentor has an option to purchase an 80 per cent interest; 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 contact:

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

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