KGL RESOURCES LIMITED — Capital/Financing Update 2011

Jun 19, 2011

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Kentor Gold Ltd ACN 082 6 58 080

20 June 2011

Kentor Gold Limited (ASX: K GL) is an Australian - based compa n y that is engage d primarilyin the exploration and development of gold, base m e tals and geo t hermal energy in Central Asia wher e it has highly regard e d, establishe d local management. Kentor Gol d owns 80% of the A ndash Gold- C opper Project w h ich is under development in the KyrgyzRepublic and is targ e ted to produce ann u ally 70,000 o z gold and 7,400 tonnes cop p er in concentrate. K entor Gold i s also targeting earl y production a t goldcopper pro j ects in W estern Australia an d the Jervois multimetals proje c t in the N o rthern Territory.

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Issued capital:

1,062.1 millio n ordinary shares 58.1 million u n listed options

Market Capitalisation

(17 June 2011): $110 millio n

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Kentor Advances the Burnakura Gold Project in WA

Kentor Gol d Limited (“th e Company” o r “Kentor G o ld”) is advan c ing its plans t o commence early gold p roduction at the Burnak u rra mine with t h e acquisitio n of plant a n d equipment to augment the existing eq u ipment on si t e. Kentor has acquired a heap leach plant, previ o usly owned by Range Riv e r Gold (in ad m inistration), which includ e s the followi n g:  A t w o stage cru s hing plant.  He a p leaching equipment including a n agglomer a tor, conveyors and stacker

• Ca r bon adsorpti o n tanks

• Elu t ion column a nd gold roo m .

The elution column and gold room w ill be used i n the proces s ing circuit at the Burnakurr a project and provides K e ntor with a c ost effective m e ans of re-co m missioning t he plant.

The crushi n g equipment will be utilis e d to upgrad e the throug h put capacity of the Burnaku r a plant and t he heap leaching equip m ent will possibl y be used to e stablish a h e ap leaching o peration to treat the low gr a de ore at B u rnakura. Heap Leaching at Burnakura is currently th e subject of a feasibility st u dy. The acquisition price w as $1.3 million and will be funded from current cas h reserves

The acquis i tion follows t he announc e ment of a g old resourc e on the project in excess o f 500,000oz. The feasibility study for the project continues with th e aim of com m encing pro d uction in 2012. Commentin g on the acquisition, S imon Milroy, the mana g ing director of K entor Gold s aid “The purchase of this equipment will contribute t o a fast and c ost effective restart of th e Burnakura g old plant at an e xpanded ca p acity. The a d ditional equ i pment will mean that a heap leaching op e ration can b e established in the future at a low capital c ost. “

Kentor Gold Ltd ACN 082 658 080

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For further information contact:

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

Table 1Burnakura Inferred Resource estimates May 2011

	0.5 g/t Au cut offMt**Aug/t **Au koz	1.0 g/t Au cut offMtAug/tAu koz	1.5 g/t Au cut offMtAug/tAu koz
NOAAllianceLewis RewardAuthaalFederal CityBanderol	5.31.83071.91.3791.21.1421.21.2460.41.7220.61.019	3.42.42620.82.0510.41.8230.42.0260.22.7170.21.510	2.23.02120.42.7350.22.3150.22.8180.13.7120.12.17
Total	10.61.5516	5.42.2390	3.22.9298

The information in this report that relates to mineral resource estimation for Burnakura is based on work completed by Mr Jonathon Abbott who is a full-time employee of Hellman & Schofield Pty Ltd and a member of the Australasian Institute of Mining and Metallurgy. Mr Abbott has sufficient experience which is 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’. Mr Abbott consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Mr Abbott visited the Burnakura project from 20 to 21 April 2011.

Photographs of Plant and Equipment - Indee Site 2005

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2 Stage Crushing Plant

Kentor Gold Limited

www.kentorgold.com.au

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Agglomerator and Cement SIlo

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Overland Conveyor

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20 June 2011

Kentor Gold Limited

www.kentorgold.com.au

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Stacker

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Carbon Tanks, Elution Column and Gold Room

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20 June 2011