KGL RESOURCES LIMITED — Capital/Financing Update 2009

Sep 27, 2009

ASX / MEDIA RELEASE

28 September 2009

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KENTOR GOLD LTD

ACN 082 658 080

Andash Gold-Copper Project

• Positive due diligence results

• Option to purchase extended to end December 2009

 Board support to exercise option to purchase Andash

Kentor Gold Ltd (Kentor or the Company) has completed the financial, technical and legal due diligence on the Andash gold-copper project in Kyrgyzstan. There are some items still to be addressed; however the process has shown the Andash project to be both economically robust and technically feasible. Kentor now plans to update and optimise the previous feasibility study; this process will be completed by March 2010.

The Kentor board and Aurum Mining PLC (the Vendor) have now agreed to extend the option agreement by a further three months. This will result in Kentor paying US$300,000 to the Vendor, of which US$150,000 will offset the final purchase price of US$10 million for the project and US$5 million for the mining fleet.

Furthermore, the Kentor board has given approval for conditional exercise of the option to purchase the project. The conditions are that suitable funding is arranged; confirmation from the Kyrgyz government that they do not wish to take up their pre-emptive right to acquire the project; and approval is obtained from both the Aurum Mining and Kentor shareholders.

Kentor expects the formal notification from the Kyrgyz government to be received imminently.

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 rate of 60,000 oz gold and 5,000 tonnes copper per year for eight years subject to board conditions - Kentor has an option to purchase an 80 per cent interest; and

• Savoyardy, currently 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:

Simon Milroy Managing Director Kentor Gold Ltd Phone: + 61 (0) 7 3121 3206 Mobile: + 61 (0) 448 851 575

Registered Office Level 36 Riparian Plaza, 71 Eagle St Brisbane 4000 Phone: 61 (0) 7 3121 3206

Kyrgyz Republic Office 11-12/92 Kievskaya Street , Bishkek Kyrgyz Republic 720026 Phone: +996 312 660 280

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www.kentorgold.com.au