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KGL RESOURCES LIMITED Capital/Financing Update 2012

Aug 21, 2012

65179_rns_2012-08-21_f6a962b6-7177-4878-8c06-81883a31fd98.pdf

Capital/Financing Update

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Kentor Gold Ltd

ACN 082 658 080

22 August 2012

Australian‐based Kentor Gold Limited (ASX: KGL) has entered the ranks of operating gold mining companies in 2012. The Company is progressing a pipeline of advanced projects in Australia and the Kyrgyz Republic.

The Murchison Gold Project in Western Australia ‐ commenced high grade gold mining at the Burnakura plant in mid‐2012, with the potential to add gold‐copper production from the neighbouring Gabanintha deposit.

The high grade, very low cost Andash Gold‐Copper Project in the Kyrgyz Republic – development‐ ready, awaiting site access and targeting 2013 to commence production at 70,000 oz gold and 7,400 tonnes copper pa for an initial six years, with high potential for expansion.

The Jervois Copper‐Silver‐Gold Project in the Northern Territory – targeting 2014 start‐up following current studies into developing the high grade copper‐silver resource with potential for gold, magnetite and other base metals.

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Issued capital:

150.4 million ordinary shares (including Rights shares) 5.8 million unlisted options

Kentor Gold - Entitlement Offer

Kentor Gold Limited (“Kentor Gold” or the “Company”) advises the following in relation to its 5 for 17 non-renounceable Rights Issue announced on 17 July 2012.

Shares A$ mill
Total number of shares offered: 34,179,375 $20.5
Total applications pursuant to the RightsIssue (inc. Foreign Holder Sales) 15,497,356 $9.3
KMP Underwriting 8,333,333 $5.0
Net Shortfall 10,348,686 $6.2

Approximately $5 million of the Rights Issue shortfall has been underwritten by Kentor Gold’s largest shareholder KMP Investments (‘KMP’). Following the Rights Issue and subject to no additional shares being issued under the shortfall, KMP will hold 27.3% of the Company’s issued capital. The board has invited KMP to appoint a representative to join the directors of Kentor Gold. The board welcomes the increased involvement of KMP and looks forward to working together to increase value for all shareholders.

Kentor has now raised a total of $20.5 million through the placement announced on 17 July 2012 and the Rights Issue.

This will allow Kentor to progress the development activities at both the Murchison Gold Project in Western Australia and the Jervois Copper and Base Metals Project in the Northern Territory as well as meet the Company’s corporate requirements.

The board would like to thank all shareholders for their participation and looks forward to their ongoing support.

The board reserves the right to placement of the short fall following the completion of the Rights Issue

Mr Simon Milroy Mr David Waterhouse Managing Director Investor Relations Phone: (07) 3071 9003 Ph (03) 9670 5008 [email protected] [email protected]