KGL RESOURCES LIMITED — Capital/Financing Update 2009

Sep 9, 2009

ASX / MEDIA RELEASE

10 September 2009

Savoyardy Drilling Update

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KENTOR GOLD LTD

ACN 082 658 080

Another high grade intersect gives further indication of Resource continuity at depth at Savoyardy

 Strengthens 2010 gold mine planning

Further high grade drill results have again indicated continuity at depth of the gold Resource at Savoyardy where Kentor Gold Limited (ASX Code: KGL) (Kentor or the Company) is planning to mine next year.

As with the first hole (UD48), results of which were announced last month, Kentor has again encountered high grade gold in the second hole (UD28) of the underground diamond drilling program at the Savoyardy gold project in the Kyrgyz Republic.

Results just received for UD28 show 2.95m at 7.8g/t gold in lode #4 30 metres below the previously announced intercept in UD48. Results from lode #10 were more dispersed than in UD48, but included 0.4m at 6.42g/t.

The first hole, UD48, was drilled on Section 2b to intersect the ore zones 40 metres below the level of the existing underground adit. Results included 1.9m at 7.05g/t gold from lode #4 and 3.05m at 6.3g/t gold from lode #10. These mineralised intercepts were 20 metres below the lowest level included in the current Resource estimate.

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

• Andash, 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, 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 in the 1970 ’ s.

The drill rigs on site have now completed the planned 9-hole surface drilling program, and 6 holes out of the planned 7-hole underground drilling program. Analysis of results to date has led to the approval of a further 5 surface drill holes to explore shallow mineralisation between sections 2, 3, and 4.

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

“ We are delighted to get continued indications that the Savoyardy Resource persists at depth, pointing to a longer-life and more robust mining operation. ”

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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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 exploration is continuing under Chinese ownership.

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. The mineralised structures can be traced for over 7 kilometres to the south-west along strike where it meets 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, and

• 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.

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

Table 1	Table of S	ignificant I	ntersectio	ns (>3g/t A	u) to Date from 200
LOCATION	FROM	TO	L	Au g/t	Interval
SVD_UD_48	44.50	45.00	0.50	10.70	1.9m@7.05g/t
	45.00	46.00	1.00	6.43
	46.00	46.40	0.40	4.1
	68.50	69.50	1.00	6.671	1.0m@6.67g/t
	82.00	83.00	1.00	3.78	4.05m@5.7g/t
	83.00	83.50	0.50	7.44
	83.50	84.00	0.50	15.20
	84.00	85.00	1.00	3.98
	85.00	85.90	0.90	2.6
	85.90	86.05	0.15	10.00
SVD_UD_23	81.80	82.80	1.00	9.53	2.95m@7.48g/t
	82.80	83.80	1.00	4.00
	83.80	84.75	0.95	8.98
	91.80	92.20	0.40	6.42	0.4m@6.42g/t
	99.00	100.00	1.00	3.26	1.0m@3.26g/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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