KGL RESOURCES LIMITED — Capital/Financing Update 2009

Oct 11, 2009

ASX / MEDIA RELEASE

12 October 2009

Savoyardy Update

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KENTOR GOLD LTD

ACN 082 658 080

Further Drilling Results at Savoyardy

Kentor Gold Limited (ASX Code: KGL) (Kentor or the Company) continues to increase the potential of Savoyardy with a shallow high grade drill intersection on Section 4.5, some 50 metres along strike from the Section 5 and Section 6 results recently announced, and a further high grade intersection from underground in-fill drilling on Section 2b. Two holes drilled on Section 6.5 have returned no significant results.

Surface Drilling on Section 4.5

The high grade intersection from DD32 on Section 4.5 means that there are consistent high grade intersections on 3 sections over a strike length of 75 metres from Section 4.5 to Section 6. This area lies 200 metres along strike form the area included in the JORC compliant resource statement by Hellman and Schofield. Shallow surface drilling continues to yield high grade intersections at depths of less than 100m.

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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

Diamond drill hole DD32 returned an intersection of 1m at 8.07 g/t gold. The nature of ore intersection indicates continuity with the high grade intersections on Section 5 and Section 6.

Plan of Location of Savoyardy Drill Sections

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Underground Infilling Drilling on Section 2b

Diamond drill hole UD24 was the second of several holes designed to test continuity between the high grade intersections on Sections 1 and 2, which are spaced 75 metres apart. It returned intersections of 1.0 m at 9.61 g/t gold and 0.9 m at 11.3 g/t gold. Assay results from the other infill holes on Sections 2a and 1.5 are expected over the next 2 months.

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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.

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

“ The stream of positive exploration results from this year ’ s programme of underground and surface drilling at Savoyardy is expected to continue over the next 2 months as results are issued by the assay laboratory. ”

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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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 considering the development of two gold mines in the Kyrgyz Republic

• At Andash over which Kentor has an 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.

Table 1 Table of Significant Intersections (>3g/t Au)to Date from 2009 Drill Program

Table 1	Table of Si	gnificant In	tersection	s (>3g/t A	u)to Date f	rom 2009 Drill Progr
LOCATION	SMPL	FROM	TO	L	Au,g/t	Length and Grade
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
	R31885	91.80	92.20	0.40	6.42	0.4m@6.42g/t
	R31893	99.00	100.00	1.00	3.26	1.0m@3.26g/t
SVD_DD_39 Section 5	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

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	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
	R31983	59.50	60.00	0.50	3.65	0.5m @ 3.65g/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

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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