KGL RESOURCES LIMITED — Capital/Financing Update 2011

Dec 18, 2011

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19 December 2011

Kentor Gol d (ASX: KG L ) is an Australian-b a sed, emer g ing midtier gold co m pany with a dvanced projects in Australia and the Kyrgyz Rep u blic. Formed in 1 998 and list e d on the ASX in 2 005, the Company expects to c ommence h i gh grade gold produ c tion at Burnakura in Western A u stralia in m id-2012, with potential additional goldcopper p r oduction fr o m the neighbourin g Gabanintha deposit. At Jervois in the Northern Territory, th e Company i s studying the feasibilit y of developing a large, high grade copper-silver resource with potenti a l for the pro d uction of gold and other base meta l s. In the Kyr g yz Republi c , Kentor Gold is rea d y to procee d with the development of the C o mpany’s 80% owned high grade, very low cost Andash Gold-Copp e r Project once site access h a s been obtained. A ndash is ta r geted to produce 70, 0 00 oz gold a nd 7,400 tonnes cop p er pa for an initial six years, wit h high pot e ntial for expansion.

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Issued capital:

1,062.1 milli o n ordinary s h ares 63.6 million u nlisted optio n s

Market Capitalisation

Air core drilling results at Burnakura Gold Project

Kentor G old Limite d (Kentor G o ld or the C ompany) reports the results o f a 60-hole air core dril l ing progra m , the first e x ploration drill pro g ram that t h e Company has condu c ted at its Burnakura Gold P r oject locate d approxim a tely 45km s outh of Me e katharra in West e rn Australi a .

The ex p loration ar e a is locate d 2km nort h of the kn o wn gold Resour c e at Bur n akura wh e re Kentor Gold ex p ects to comme n ce gold mi n ing in mid-2 0 12.

The ai r core drilli n g program targeted a magnetic structure interpre t ed as containing a re p etition of t h e Burnaku r a Thrust zone w hich hosts the NOA s e ries of pit s where mi n ing was previou s ly undertak e n

Several low level g o ld anomalie s were iden t ified from th e drilling, the bes t results bei n g;

Hole	In terval	G old Assay
11BNAC 0053	4m	0.13gt
11BNAC 0071	1m	0.25gt
11BNAC 0089	9m	0.10gt
11BNAC 0134	1m	0.12gt
11BNAC 0135	1m	0.20gt

The results of the air core drilling will be foll o wed up as part of a larger 2 0,000m R C drilling program, plan n ed to com m ence in early J a nuary 2012 . The RC p r ogram will i n clude infill d rilling to improv e confidence in the area s of initially p lanned pro d uction at Burnak u ra.

All samples in the air core dri l ling progra m were analysed for gold, w ith the end of hole s a mple from each drill h ole also subject e d to multi-elem e nt geoc h emical analysis.

16 Decemb e r. 2011: $12 2 million

Kentor Gold Limited

www.kentorgold.com.au

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Logging of drill chips and geochemical results confirm the presence of Ultramafic and Basalt lithology’s, volcanoclastic sediments as well as identifying granitic rocks. Potassic alteration, quartz veining and shear textures have been recorded in the geological logging of some drill chips. Granitic rocks can play a significant role in the localisation of mineralisation through providing rheological contrast and strain shadows.

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Figure 1 Burnakura tenement Plan

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Kentor Gold Limited

www.kentorgold.com.au

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19 December 2011

Kentor Gold Limited

www.kentorgold.com.au

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Progress on Burnakura Gold Mining Project

The Company is currently progressing towards the re-commissioning of the Burnakura mill prior to the commencement of mining in 2012. Diamond drilling to gather geotechnical information to support the Mining Proposal Amendment is complete. Further diamond drilling to obtain samples for ongoing metallurgical test work is expected to be completed in the next fortnight.

The Burnakura Gold Project is one of two high quality land holdings 100% owned by the Company in the Murchison Province, the other being the Gabanintha Gold-Copper Project. The Burnakura Project covers 5001Ha and is located in an area with a long history of gold production (Paddys Flat 2.3Moz, Reedy Mine 1Moz). Historical production on the Burnakura tenements exceeded 250,000oz.

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Figure 2 Diamond drilling of geotechnical holes at Burnakura

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19 December 2011

Kentor Gold Limited

www.kentorgold.com.au

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For further information contact:

Mr Simon Milroy Managing Director Phone: (07) 3121 3206 Email: info@kentorgold.com.au

Mr. David Waterhouse Investor Relations Phone (03) 9670 5008 Email: dwaterhouse@waterhouseir.com.au

Competent Person Statement

The data in this report is based on information compiled by Keith Mayes, who is a Fellow of the Geological Society of London and a full time employee of Jinka Minerals Ltd.

Mr. Mayes 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. Mayes has consented to the inclusion of this information in the form and context in which it appears in this report.

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19 December 2011