KGL RESOURCES LIMITED — Capital/Financing Update 2011

Aug 30, 2011

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Kentor Gold Ltd ACN 082 6 58 080

31 August 2011

Kentor Gold (ASX: KGL) is an Australian-ba s ed, emergin g midtier gold com p any with ad v anced projects in Australia and the Kyrgyz Republic. Formed in 1998 and listed on the ASX in 2005, the C o mpany expects to c o mmence high grade gold producti o n at Burnakura in Western Au s tralia in mi d -2012, with potenti a l additional goldcopper pro d uction fro m the neighbouring Gabanintha d e posit. At Jervois in the N o rthern Territory, the C ompany is s t udying the feasibility o f developing a large, high grade c o pper-silver resource with potential for the produ c tion of gold and othe r base metals. In the Kyrgyz R epublic, Kent o r Gold is ready to proceed wi t h the development of the Co m pany’s 80% owned h igh grade, v e ry low cost Andash Gold-Copper Project once site access has been obtained. A n dash is targ e ted to produce 70,0 0 0 oz gold an d 7,400 tonnes coppe r pa for an in i tial six years, with high potent i al for expansion.

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Issued capital:

1,062.1 millio n ordinary shares 63.6 million u n listed options

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Jervois Exploration Highlights

• New copper-silve r mineralisation at Jervo i s, NT

• High grade cop p er-silver-g o ld intersected betwe e n existing Resources

Kentor Gol d Limited (“K e ntor Gold” o r “the Company”) is pleas e d to announce that a regional explora t ion drilling p rogram at t h e Jervois Pro j ect in the N o rthern Terri t ory has bee n successful in identifying n ew copper-s i lver minerali s ation.

The Rever s e Circulatio n (RC) drilli n g program is one of t w o intensive p r ograms tar g eting increa s ed Resour c es at Jervo i s. The other D iamond Drilling progra m , aimed at upgrading a n d extending t he initial J O RC Resour c es at Jerv o is, is due to conclude n e xt month.

Assay results have be e n received for all the R C holes in t h e program w h ich was de s igned to ga i n an under s tanding of t h e potential fo r mineralisati o n on structu r al features i n terpreted from a ground based geophysical program undert a ken in 2010. Encouragin g anomalou s results support the ex p loration model and indicat e the minerali s ed potential of the projec t area.

New mineralisation: Hole RJ 194, drilled to the north of t h e known Res o urces at th e Bellbird pro s pect and south of those at Bellbird No r th, returned  6m @3.18% co p per, 23.55 g /t silver an d 0.45 g/t g o ld fro m 59m.

Green Parrot: Hole R J 198, drilled under the e xisting Gre e n Parrot Pit fr o m the eastern wall, prod u ced a best i n tersection of

• 7.0 m @ 0.42% copper, 0.3 3 % lead and 19.91g/t silver fro m 124m.

Drill hole l o cations are presented i n Figure 1. a nd significant assay results from the R C drilling a r e tabulated i n Appendix 1.

Market Capitalisation

30 August. 2011: $122 million

Kentor Gold Ltd ACN 082 658 080

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Announcing the results, Kentor Gold Managing Director Simon Milroy said:

“The encouraging regional RC results form an excellent foundation from which future exploration activities can be planned.

“The grades emerging at Jervois are very significant.

“In July 2011, we established an Inferred Resource of 8.8 million tonnes @ 1.3% copper and 26.7 g/t silver to give 113,000 tonnes copper and 7.6 million ounces silver.

“Two weeks ago, we announced the assays from the first diamond drill holes which included a best result of 8.1m @ 2.56% copper and 13.45 g/t silver at the Reward deposit.

“Results from the ongoing diamond drilling at Reward, Green Parrot, Bellbird and Bell Bird North prospects will be available in the coming weeks.”

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

Kentor Gold Ltd ACN 082 658 080

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Figure 1.Regional view of the Jervois Project.

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Kentor Gold Limited

www.kentorgold.com.au

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Appendix 1. Table of Significant Drilling Results

Hole Number	Interval	%Cu	%Pb	%Zn	g/t Ag	g/t Au	Depth From
RJ175	1m	0.42	0.01	0.04		0.01	40 m
RJ176	3m 1m	0.39 0.25		0.02 0.01	0.80 0.60	0.01 0.01	23 m 43 m
RJ182	1m	0.49	0.12	0.22	6.10	0.01	100 m
RJ183	1m 1m	0.37 0.32		0.02 0.01	0.70 1.10	0.01	45 m 53 m
RJ184	1m 1m 1m 4m 1m	0.10 0.20 0.21 0.28 0.37	0.01	0.01 0.01 0.01 0.01 0.01	1.00 1.38 0.70	0.01 0.01 0.03	51 m 57 m 85 m 87 m 101 m
RJ185	4m 3m 3m 25m	0.01 0.01 0.01	0.01 0.02 0.01	0.23 0.65 0.22 0.24	0.70 0.17 0.02		10 m 18 m 22 m 31 m
RJ186	1m 1m 1m	0.17 0.17 0.36	0.03	0.02 0.02 0.02	0.50 0.50	0.01 0.01 0.02	66 m 93 m 96 m
RJ187	1m 3m 1m	0.29 0.53 0.16		0.02 0.05 0.04	1.00 2.13	0.01 0.01	42 m 55 m 79 m
RJ188	1m 2m	0.58 0.21		0.02 0.05	5.60 0.90	0.01 0.01	25 m 44 m
RJ189	6m 1m 6m	0.09 0.01	0.55 0.04 0.01	0.10 7.42 0.26	14.22 4.00 0.37	0.01 0.01	28 m 41 m 42 m
RJ190	4m	0.03	0.01	0.10			24 m
RJ193	7m 1m 1m 2m 7m	0.08 0.06 0.01 0.86 0.39	0.10 0.50 0.17 0.01 0.02	0.03 0.12 0.02 0.02 0.04	1.40 3.80 1.00 4.90 2.46	0.01 0.04 0.05	2 m 12 m 28 m 109 m 113 m
RJ194	6m 1m	3.18 0.59	0.03 0.01	0.07 0.04	23.55 2.70	0.45 0.03	59 m 68 m
RJ196	1m	0.01		0.01		0.27	1 m
RJ198	1m 1m 3m 1m 7m 3m 7m 3m	0.02 0.26 0.23 0.03 0.42 0.26 0.05 0.08	0.03 0.04 0.14 0.44 0.33 0.15 0.48 0.04	0.02 0.09 0.22 0.16 0.08 0.29 0.19 0.16	2.90 2.50 9.30 9.80 19.91 25.67 12.97 5.30	0.36 0.06 0.06 0.02 0.01 0.03 0.01 0.01	15 m 34 m 36 m 83 m 124 m 138 m 148 m 190 m

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31 August 2011

Kentor Gold Limited

www.kentorgold.com.au

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Competent Person Statement

The data in this report is based on information compiled by Rudy Lennartz, who is a member of the Australian Institute of Mining and Metallurgy and a full time employee of Jinka Minerals Ltd. Mr. Lennartz 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.Lennartz has consented to the inclusion of this information in the form and context in which it appears in this report.

The data in this report that relates to Mineral Resource Estimates is based on information evaluated by Mr Simon Tear who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity 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 (the “JORC Code”). Mr Tear is a full-time employee of Hellman & Schofield Pty Ltd and he consents to the inclusion in the report of the Mineral Resource in the form and context in which they appear.

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31 August 2011