KGL RESOURCES LIMITED — Capital/Financing Update 2012

Aug 15, 2012

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

16 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 M urchison Gold Project in Western Australia - commenced 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 Issue shares) 5.8 million unlisted options

Kentor Gold discovers further coppersilver-gold extensions at Jervois

Deep drilling intersects high grade copper to the north of Reward Deposit

Kentor Gold Limited (“Kentor Gold” or “the Company”) is pleased to announce that drilling to the north of the Reward Deposit at the Jervois Project in the Northern Territory continues to indicate the extension of significant copper silver and gold mineralisation that remains open (refer Table 1).

Results for the two diamond holes (detailed in Table 1 below) include:

8.0m @ 4.8% Copper, 0.2% Lead, 0.6% Zinc, 62.1g/t Silver, 0.35g/t Gold from 502m (Hole RJ204). approx. 441m vertical depth.

9.05m @ 4.9%Copper, 0.3% Lead, 0.4% Zinc, 66.2g/t Silver, 1.22g/t Gold from 509m (Hole RJ204W1). approx. 430m vertical depth.

Kentor Gold Managing Director Simon Milroy said:

“Our expectation of Jervois as a potentially major mining operation is strengthened further by these encouraging drill results.

“These latest intersections add confidence to the depth potential and northern extension of mineralisation at the Reward Deposit.

“They follow recent announcements of a new high grade near surface copper zone to the west of the Marshall Deposit, high grade copper results 6km south at the Bellbird Deposit , and the discovery of a previously unknown copper-gold zone (Chubko Prospect) to the south-east.

“We continue to give very high priority to the current Bankable Feasibility Study of Jervois.”

The two holes, announced today were targeted approx. 100m north of mineralisation intersected in hole RJ169 (72m @ 3.27% Cu, 0.25% Pb, 0.11% Zn, 51.33g/t Ag and 1.16g/t Au from 414m) during Kentor Gold’s 2011 drilling program (refer Fig 1).

Kentor Gold Limited

www.kentorgold.com.au

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Despite RJ204W1, which was wedged off the primary RJ204 hole, not lifting at the expected rate, there is a 12 metre vertical and 12 metre lateral offset between the holes which gives a great deal of encouragement for further investigation of northern extensions to the system.

A fence of holes has been drilled between RJ204/RJ204W1 and RJ169 with all holes intersecting mineralisation. Results are pending.

Mineralisation is within the siliceous calc-silicate, magnetite rich, +/- garnet and/or chlorite metamorphic schist (MSch) unit which typically hosts the elevated copper sulphide in the region.

Plates 1 and 2. indicate the heavily altered schists (usually by strong silica alteration) as a result of the sulphide emplacement. In both cases the schistose fabric has been completely overprinted by the silica and sulphides. Darker magnetite and chloritic grains can be seen disseminated throughout the regional fabric.

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Plate1. RJ204 - 508.0m to 509.0m

Plate 2. RJ204W1 - 517.0m

Kentor Gold Limited

www.kentorgold.com.au

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Figure 1 Jervois 2012 drilling results plan

Kentor Gold Limited

www.kentorgold.com.au

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Table 1. Drill Hole Mineralisation Intercepts

HoleID	Easting	Northing	RL	Dip	Azimuth	_BOX_(m)*	From(m)	To(m)	Interval(m)	_EHTW(m)_**	Cu%	Pb%	Zn%	Agg/t	Aug/t
RJ204	630138	7495370	350	-65-52-52	90	6.0	485500502	486501510	1.01.08.0	0.620.624.93	0.70.94.8	0.00.00.2	0.00.10.6	7.15.862.1	0.060.270.35
RJ204W1	630138	7495370	350	-65-50-49	90	6.0	505.8509518.05	507518.05520	1.29.051.95	0.775.821.28	1.44.90.2	0.00.30.0	0.00.40.3	3.566.23.0	0.011.222.45

*Base of Oxidisation down hole depth **Estimated horizontal true width

For further information contact:

Mr Simon Milroy Managing Director Phone: (07) 3071 9003 Email: info@kentorgold.com.au

Mr. David Waterhouse Investor Relations Phone (03) 9670 5008 Email: dwaterhouse@waterhouseir.com.au

Competent Person Statement

The data in this report is based on information compiled by Rudy Lennartz, who is a member of the Australasian Institute of Mining and Metallurgy and a full time employee of Kentor Gold Limited. 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.