KGL RESOURCES LIMITED — Capital/Financing Update 2009

Jul 26, 2009

ASX / MEDIA RELEASE

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KENTOR GOLD LTD

ACN 082 658 080

27 July 2009

GOLD RECOVERY OF 95% ACHIEVED FROM SAVOYARDY CONCENTRATE

• Important marketing advantage for Savoyardy concentrate

• Savoyardy production targeted for 2010 subject to late 2009 development decision

Kentor Gold Limited is pleased to announce that bio-leach amenability testing (BAT), followed by conventional carbon-in-leach (CIL) has been completed on the bulk sulphide concentrate sample from the Savoyardy deposit. The BAT work was completed at the Burnie Laboratory, in Tasmania using Goldfields BIOX® technology, and the CIL test at the AMMTEC laboratory in Perth.

Welcoming the result, Kentor Gold Managing Director Mr Simon Milroy said:

“These results represent a significant step forward for the Savoyardy project. We can now be confident of realising good payment terms for our concentrate, and we have a range of marketing options to existing BIOX facilities in the central Asia region.”

The high grade, low cost Savoyardy project, located in the Kyrgyz Republic, is targeted to commence production in 2010 subject to a final development decision late in 2009.

The metallurgical testing is part of current pre-development work that also includes confirmatory and exploration drilling to increase the current JORC Resource, negotiation of mining contracts, transport, processing, product sales and government approvals.

BAT test work showed that 98.9% of the contained sulphide sulphur was oxidized during the bio-leach stage.

The combined BAT/CIL test work demonstrated a gold recovery of 95% from the global concentrate sample derived from Savoyardy underground ore types. The bio-oxidised product demonstrated fast leach kinetics, with 95% of the contained gold leached into solution after 2 hours.

The final overall predicted gold recovery for the gravity-flotation/UFG/BIOX/CIL process option is detailed in Table 1.

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

Table 1: Savoyardy Predicted Gold Recoveries

Process Route Description	Grind Size P80 (µm)	Gravity/ Flotation Recovery (%Au)	Pre- treatment/ CIL Recovery (%Au)	Solution/ Goldroom Recovery (%Au)	Predicted Plant Recovery (%Au)
Float/UFG/BIOX/CIL	75	94.0	95.0	99.0	88.4

The overall predicted gold recovery from the Savoyardy global composite using the gravity-flotation/UFG/BIOX/CIL process flow sheet is predicted at 88.4%.

BIOX® is a bio-hydrometallurgical process for the pre-cyanidation treatment of refractory gold ores. This process offers an alternative to conventional roasting or pressure oxidation techniques. Commercial BIOX® installations exist in neighbouring Kazakhstan, Uzbekistan, and western China.

Initial production at Savoyardy is envisaged at the rate of 10,000 oz gold per year for a minimum of three years, to provide Kentor Gold with valuable early cash flow. Kentor Gold acquired an option to purchase 100% of the Savoyardy gold project for US$1.25M.

A second, larger Andash Gold-Copper Project, over which Kentor Gold has acquired an option to purchase, is targeted for production in 2011 at the rate of 60,000 oz gold and 5,000 tonnes copper a year for eight years.

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 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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