KGL RESOURCES LIMITED — Capital/Financing Update 2009

Sep 1, 2009

ASX / MEDIA RELEASE

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KENTOR GOLD LTD

ACN 082 658 080

2 September 2009

DUE DILIGENCE UPDATE

Since signing the Memorandum of Understanding to purchase the option over the Andash Gold/Copper project, on 30[th] June 2009, Kentor Gold Limited (ASX code: KGL) (Kentor or the Company) has been working through the technical, legal and financial due diligence relating to the transaction. Although still in the preliminary stages, the following points summarise some of the major findings to date.

Technical

• Reviews are being undertaken of the mine scheduling and plans are being made to introduce an interim pit into the mine plan, thereby providing access to potentially higher grade ore earlier in the mine life.

• Optimisation studies have been conducted which assess a number of separate mill throughputs. The currently preferred project development model is to commence with a plant treating 1.5 mtpa of high grade ore which is subsequently expanded in year three to 2.5 mtpa. This development scenario has the potential to reduce the up-front capital required for the project development with the expansion being paid for from operating cash flow.

• Engineering consultants have indicated that further metallurgical test work has the potential to increase the metallurgical recoveries and increase the concentrate grades.

• The geological review of the exploration results to date indicate that the Andash exploration licence is likely to contain further mineralisation which has the potential to increase the resources in the future.

Legal

• New legislation has been passed by the Kyrgyz government in late August relating to “Strategic Assets”. The legislation has been introduced without any procedures or regulations and as a result, the application of the new law is unclear, however Andash Mining Company has been named as a strategic asset of the Kyrgyz Republic. The legislation will essentially give the government first right of refusal on transactions involving these strategic assets. As it currently reads, the legislation does not apply to Kentor’s purchase of the project as Kentor Gold will be purchasing the Kaldora company in the Brithish Virgin Islands, which owns the Andash Mining Company in the Kyrgyz Republic.

Kentor intends to finalise all outstanding due diligence items in the coming weeks with a view to presenting the Board with a recommendation on the project by mid September in order to meet the conditions of the Purchase Option.

About Kentor Gold

Kentor Gold Limited (ASX Code: KGL) is an Australian-based company formed in 1998 as a specialist gold explorer in Central Asia. The Company was listed on the Australian Securities Exchange in March 2005 and is now focused on bringing the Andash and

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

Savoyardy gold projects into production. Kentor Gold also has a free carried interest in the Central Asian Geothermal Energy joint venture with Panax Geothermal.

For further information contact:

Mr Simon Milroy Managing Director Phone: +61 44 88 515 75 Email: info@kentorgold.com.au

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