KGL RESOURCES LIMITED - Capital/Financing Update 2011

==> picture [559 x 138] intentionally omitted <==

----- Start of picture text ----- Kentor Gold LtdACN 082 658 080----- End of picture text -----

9 September 2011

Kentor Gold (ASX: KGL) is an Australian-based, emerging midtier gold company with advanced projects in Australia and the Kyrgyz Republic.

Formed in 1998 and listed on the ASX in 2005, the Company expects to commence high grade gold production at Burnakura in Western Australia in mid-2012, with potential additional goldcopper production from the neighbouring Gabanintha deposit. At Jervois in the Northern Territory, the Company is studying the feasibility of developing a large, high grade copper-silver resource with potential for the production of gold and other base metals.

In the Kyrgyz Republic, Kentor Gold is ready to proceed with the development of the Company’s 80% owned high grade, very low cost Andash Gold-Copper Project once site access has been obtained. Andash is targeted to produce 70,000 oz gold and 7,400 tonnes copper pa for an initial six years, with high potential for expansion.

==> picture [139 x 4] intentionally omitted <==

Issued capital:

1,062.1 million ordinary shares

63.6 million unlisted options

Market Capitalisation

8 September 2011: $117 million

Burnakura Gold Project Update

On track for mid-2012 gold production
Recommissioning contract let
Additional plant for expansion has arrived on site
Drilling programs under way to confirm and increase Resource

Kentor Gold Limited (Kentor Gold or the Company) is pleased to announce that the Burnakura Gold Project is on track for commissioning and first production by mid-2012.

A contract has been awarded for refurbishment and recommissioning of the Burnakura Gold mine plant and for dismantling and transporting the equipment from the Indee Gold mine to Burnakura (approximately 400km to the north-west). The contractor mobilised to the Indee site at the start of September and equipment has now started to arrive at the Burnakura site.

The CIP processing plant at Burnakura is being recommissioned and expanded. The additional plant and equipment acquired from the Indee site will facilitate the re-start at Burnakura. Importantly the upgraded Burnakura plant will now have a gravity circuit to recover free gold with stripping plant and gold room relocated from Indee enabling gold production on site. Replacement of existing adsorption tanks with larger capacity leach tanks and conversion to a full CIL circuit will ensure optimal plant performance.

A throughput of 250,000 tpa is being targeted as stage one of the expanded operation. At all levels of planning and design consideration is being given to the future stage two expansion target of 500,000 tpa.

A 60 hole air core drilling program commenced today at Burnakura. The program has been designed to test structural targets adjacent to the magnetic anomaly north of the existing NOA open pits at Burnakura (Figure 1).

Kentor Gold Limited

www.kentorgold.com.au

==> picture [39 x 35] intentionally omitted <==

==> picture [433 x 612] intentionally omitted <==

Figure 1 Planned air core drilling programme and magnetics

9 September 2011

Page 2 of 5

Kentor Gold Limited

www.kentorgold.com.au

==> picture [39 x 35] intentionally omitted <==

Following the air core drilling program, works approval has now been received for an 8,000m RC drilling program that is planned to commence in October. The drilling program is designed to infill and increase the confidence in the areas where production is planned to commence.

Kentor Gold has announced an initial Inferred Resource at Burnakura of 10.6 million tonnes @ 1.5 g/t gold for a total of 516,000 oz gold at a 0.5 g/t cut off, including a high grade component of 3.2 million tonnes @ 2.9 g/t for 298,000 oz gold at a 1.5 g/t cut off.

The Company has also announced an initial inferred Resource for Gabanintha of 4.5 million tonnes @ 1.4 g/t gold for a total of 203,000 oz gold at a 0.5 g/t cut off, including a high grade 1.3 million tonnes @ 2.9 g/t for 121,000 oz gold at a 1.5 g/t cut off. The Resource also includes 450,000 tonnes @ 0.5% copper. Gabanintha is located just 20 km to the east of Burnakura.

For further information contact:

Mr Simon Milroy Managing Director Phone: (07) 3121 3206 Email: [email protected]

Mr. David Waterhouse Investor Relations Phone (03) 9670 5008 Email: [email protected]

9 September 2011

Page 3 of 5

Kentor Gold Limited

www.kentorgold.com.au

==> picture [39 x 35] intentionally omitted <==

==> picture [242 x 181] intentionally omitted <==

Crane removing the gold room from the Indee site

==> picture [244 x 183] intentionally omitted <==

Crane dismantling carbon columns from the Indee site

==> picture [242 x 181] intentionally omitted <==

Dismantling grasshopper conveyors at Indee

9 September 2011

Page 4 of 5

Kentor Gold Limited

www.kentorgold.com.au

==> picture [39 x 35] intentionally omitted <==