KGL RESOURCES LIMITED — Capital/Financing Update 2011

May 29, 2011

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Kentor Gold Ltd ACN 082 6 58 080

30 May 2011

Kentor Gold Limited (ASX: K GL) is an Australian - based compa n y that is engaged primarily i n 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 Kyrgyz Republic and is target e d 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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Initial Gold Resource of over 500,000oz for Burnakura Gold Project, WA

• High grade component of 3.2Mt @ 2.9g/t for 298,000oz

 Mineralisation remains open at depth  Resource upgrading & feasibility study targeting gold production mid 2012 Kentor Gol d Limited (“th e Company” o r “Kentor G o ld”) is pleased to announce a n Inferred R esource esti m ate for the Burnakura G old Project of 1 0 .6Mt @ 1.5 g /t for a total o f 516,000oz at 0.5 g/t cut off. At a 1.5 g/t cut off, the I n ferred Res o urce is esti m ated at 3.2Mt @ 2.9g/t for 2 9 8,000 oz gol d (see Table 3).

The estim a te follows K entor Gold’ s recent acquisition of J i nka Minerals Limited whos e assets comprise the Burnakura and Gabanintha advanced gold and copper pr o jects south of Meekatharr a in Western Australia, a n d the coppe r -gold and sil v erlead-zinc project at Jerv o is in the Nor t hern Territor y . Announcin g the estimat e , Kentor G o ld Managin g Director Si m on Milroy said:

“This is an e xcellent initi a l result. We now have

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Issued capital:

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

Market Capitalisation

(29 May. 201 1 ): $117 million

• a substantial n e ar surface R esource poi n ting to efficient, low cost mining o ptions,

• mineralisation o p en at depth o ffering goo d prospectivit y for mo r e discoverie s , and

• an existing pro c essing plan t and other i nfrastructur e on site.

“This provi d es the stron g basis for c o mmencing a feasibility s t udy aimed at bringing Burna k ura back int o production n ext year.”

As part of the due dilig e nce process for Kentor G old’s acquisition of Jinka Mi n erals, Hellm a n & Schofiel d Pty Ltd (H & S) was engaged to make an assessment of the miner a lisation iden t ified in histo r ical drilling at th e Burnakura Gold Project. Building on this recent w ork,

Kentor Gold Ltd ACN 082 6 58 080

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Kentor fu r ther engage d H&S to esti m ate mineral resources for the Burnak u ra project.

Burnakur a comprises s ix main dep o sit areas within a strike l e ngth of approximately 8. 5 kilometres. The deposits include five southern d e posits kno w n as Allian c e-New Allia n ce, Lewis- R eward, Aut h aal, Federal C ity and Ban d erol, and a northern set grouped as the NOA (N o rth of Allian c e) deposits and designat e d as NOA1 t o NOA8 (refer Figure 1). The mini n g history of the area in c ludes under g round mini n g of the so u thern areas during the e arly 1900's, o p en pit mining of each deposit area in the 1980's a nd 1990's a n d underground mining of the NOA2 de p osit from 20 0 5 to 2009.

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Figure 1 Pit crests, model limits and drill hole traces

Kentor Gold Ltd ACN 082 658 080

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A substantial database of historical drilling both within and adjacent to existing pits, was used for estimation of the resource. The total number of RC and diamond drill holes for each deposit area is highlighted in Table 1.

Table 1 Summary of compiled database and limit of modelled depth

	Table 1 Summary of compiled database and limit of modelled depth
	Deposit Area
RC # Diamond #	NOA Alliance Lewis‐ Reward Authaal FederalCity Banderol	Total
	643 566 272 379 118 283 181 20 2 26 ‐ ‐	2,261
		229
Total Holes #	824 586 274 405 118 283	2490
Depth limit of modelled resource m	160 115 95 130 75 95

The vast majority of this drilling is shallower than 100m depth and hence constrains the depth extent of the modelled resource. In the case of Lewis-Reward, Federal City and Banderol there is no drilling below 100m ( Table 2).

Table 2 Depth of historical drilling

	Maximum Vertical Depth	Proportion of holes >50m >100m >150m >200m
NOA Alliance Lewis Authaal FederalCity Banderol	248 125 94 116 70 98	52% 28% 13% 3% 33% 0.4% 20% 26% 1% 14% 38%
Combined	248	36% 10% 4% 1%
Excluding NOA	125	28% 0.4%

Feasibility Study

The feasibility study commenced at Burnakura this week when a full-time engineer engaged by Kentor Gold began work on site, planning the recommissioning and expansion of the existing processing plant.

The existing Burnakura plant (Figure 2) was in operation until October 2009, processing underground ore from NOA2 at an annualised rate of 160-180ktpa. The initial study will be focussed on upgrading the leaching and tailings disposal circuits to enable the plant to process softer, oxidised material sourced from the expansion of existing pits. A throughput of approximately 300ktpa is being targeted as stage one of the processing plant expansion.

The Burnakura site includes all the necessary infrastructure required to recommission the plant including a 3MW power station, a 90-person camp, offices, workshops, warehouse, water supply and a tailings dam.

The feasibility study will target bringing the operation back into production by June 2012.

Kentor Gold Ltd ACN 082 6 58 080

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Figure 2 Burnakura CIL Plant

Exploration and Development

A progra m of RC and diamond dri l ling is plann e d to comm e nce in the September quarter to incr e ase confiden c e in resourc e estimates. Although th e historical drilling is co m monly close l y spaced in the resource areas, the planned d r illing includ e s twinning selected historical hol e s and de n sity measure m ents of dia m ond core t o confirm reli a bility of historical data. T his initial pr o gram will f o cus primarily o n deposits south of the NOA pits inclu d ing Alliance and New Alliance.

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Figure 3 Alliance drilling, pit crests and resource domains at 430 mRL Although the immediate focus is o n upgrading the existing resource, th e re is signifi c ant potentia l for additional high grade m ineralisatio n especially o n the NOA l i ne of deposi t s. Figure 4 highlights w h ere existing d rilling has in t ersected th e mineralised domain. Th e re are signi f icant gaps i n existing dri l ling and pote n tial to exten d mineralisation along stri k e and down dip that will be the targe t of future dri l ling programs.

Kentor Gold Ltd ACN 082 6 58 080

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Figure 4 Long section through NOA pits highlighting midpoints of mineralised domain from historical drilling

As previously announ c ed, a reconnaissance air-core drilling p rogram, is p l anned to tes t the potential for repetition s of the NOA style minera l isation in a h ighly prospe c tive and as y et un-drilled area north of the existing N OA pits. Drilling is anticip a ted to com m ence in the n ext few wee k s.

Notes to Accompany Resource Estimate

H&S has estimated recoverable r esources fo r Burnakura using Multiple Indicator Kriging (MIK), a method t h at has been demonstrat e d to provide reliable esti m ates of recoverable ope n pit resourc e s in gold dep o sits of diver s e geological styles. A va r iance adjust m ent has be e n applied to derive estim a tes of recoverable resour c es at the sc a le of an op e n pit operati o n with mini n g selectivity of 4 by 6 by 2.5 metres a n d grade con t rol sampling on a 5 by 8 b y 1 metre pa t tern.

Although the Burnak u ra resource drilling inclu d es many a r eas of relatively close s p aced samp l ing, uncertain t y over the r e liability of thi s sampling, t h e lack of density measurements and o xidation log g ing has resul t ed in the current estimates being cla s sified as Inf e rred. Additi o nal work, in c luding twin h ole drilling and density measurement is required to a llow higher confidence es t imates.

Table 3p r ovides estimated current resources fo r Burnakura a t a range of cut off grad e s. The figur e s in this table are rounded to reflect th e precision of estimates a nd exhibit r o unding error s . The estim a tes shown fo r NOA are tr u ncated at 160 metres de p th. Estimate s for the other deposit are a s do not extend below 13 0 metres in d e pth and are tabulated wit h out depth c o nstraints.

Table 3 Burnakura Inferred Resource estimates May 2011

	Mt 0.5 g/t Au cut Aug/t off Au koz	1.0 g/t Mt A Au cut off ug/t Au k oz	1 Mt .5 g/t Au cut o Aug/t ff Au koz
NOA Alliance Lewis Rew Authaal FederalC Banderol ard ity	5.3 1.9 1.2 1.2 0.4 0.6 1.8 1.3 1.1 1.2 1.7 1.0 307 79 42 46 22 19	3.4 0.8 0.4 0.4 0.2 0.2 2.4 262 2.0 51 1.8 23 2.0 26 2.7 17 1.5 10	2.2 0.4 0.2 0.2 0.1 0.1 3.0 2.7 2.3 2.8 3.7 2.1 212 35 15 18 12 7
Total	10.6 1.5 516	5.4 2.2 390	3.2 2.9 298

For further information contact:

Mr Simon Milroy Managin g Director Phone: ( 0 7) 3121 320 6 Email: i n fo@kentorg o ld.com.au

Kentor Gold Ltd ACN 082 658 080

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H&S is a group of consulting geologists providing expert services to the hardrock minerals industry in the fields of exploration, evaluation, resource estimation and optimisation of grade control. The group specialises in application of advanced geostatistical methods to resource estimation and grade control.

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.