KGL RESOURCES LIMITED — Capital/Financing Update 2009

Sep 28, 2009

ASX / MEDIA RELEASE

29 September 2009

Savoyardy Update

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KENTOR GOLD LTD

ACN 082 658 080

More positive exploration results at Savoyardy

Kentor Gold Limited (ASX Code: KGL) (Kentor or the Company) has increased the potential of it ’ s Savoyardy gold project with a second shallow high grade intersection on Section 5.

A rock chip sample from a newly discovered mineralised zone to the north has also returned a high gold grade.

Surface Drilling on Section 5

Section 5 is well outside the area included in the JORC compliant resource statement by Hellman and Schofield, lying some 150 along strike to the south. Shallow surface drilling has now yielded high grade intersections on both Section 5 and Section 6 at depths of less than 100 metres.

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Diamond drill hole DD40 was designed to test confidence that in the single intersection of 1m at 10.3 g/t from DD20 in last year ’ s drilling campaign. The intersection of 3m at 16.2 g/t gold (estimated true width is approximately 1m) confirmed the results of DD20, and indicates that high grade intersections are repeatable.

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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Exploration North of Rudny Stream

Geological mapping on the north bank of the Rudny Stream identified massive sulphide mineralisation on the steep slope above the stream. A chip sample from the mineralised area returned an assay grade of 11g/t. There is no record of any previous work in the same area.

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Savoyardy is one of two high grade, low cost gold mine developments being planned by Kentor in the Kyrgyz Republic:

• Savoyardy, proposed to commence in 2010 at the initial rate of 10,000 oz gold per year for a minimum of three years, subject to final decision later this year; and

• Andash, a larger gold-copper project targeted for production in 2011 at the rate of 60,000 oz gold and 5,000 tonnes copper of per year for eight years, subject to current due diligence.

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 conducted in the 1970 ’ s.

The on site drill rigs have now completed the planned nine hole surface drilling program, and seven hole underground drilling program. Analysis of results to date has led to the approval of a further five surface drill holes to explore shallow mineralisation between sections 2, 3, and 4 which is scheduled to be completed by the end of September.

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

“ The results from the drilling on section five improve our understanding of the mineralisation along strike to the south. Assay results from the drilling on section six will be available soon. ”

“ The high grade rock chip sample to the north of the Rudny creek gives us a strong indication that the mineralisation may also be continuing to the north. ”

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 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 27 metres. The mineralised structures can be traced for over seven kilometres to the south-west along strike where it meets the Savoyardy exploration licence at the Chinese border.

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

• Andash over which Kentor has an option to purchase an 80% interest, and

• 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.

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

Table 1Tabl	e of Signific	ant Inters	ections (>	3g/t Au)to	Date from	2009 Drill Program
LOCATION	SMPL	FROM	TO	L	Au,g/t	l.m @ C.g/t
SVD_UD_48Section 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_23Section 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_39Section 5	R40543	18.00	19.10	1.10	3.41	1.1m @ 3.41g/t
SVD_DD_40Section 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

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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