KGL RESOURCES LIMITED - Capital/Financing Update 2012

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Kentor Gold Ltd

ACN 082 658 080

2 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 Issue Shares)

5.8 million unlisted options

Company Update

 Production at Murchison Gold Project

 Extension of closing date for Rights Offer

Murchison Gold Project

Kentor Gold Limited (“Kentor Gold” or the “Company”) is pleased to announce that mill throughput at the Murchison Gold Project, WA, has already reached design capacity of 260,000 tpa on a sustained basis.

Murchison is the first of Kentor Gold’s pipeline of three advanced projects to enter production.

The project is scheduled to produce gold at the initial rate of 24,000 oz a year from the CIL plant at Burnakura. Further expansions of production are planned to follow with the construction of a heap leach and a mill expansion.

At the end of July, an estimated 300 oz of gold is loaded on to carbon in the CIL plant with the first strip scheduled to take place during August. The plant also has a gravity gold recovery circuit and electrowinning of the gold has commenced.

The construction contractors have now demobilised from the site and the site is running on Kentor Gold personnel. The construction of the project is now complete with the exception of the delivery of the gas containers which are required to heat the stripping circuit and to heat the gold furnace.

The first gold pour from the gravity circuit is expected next week.

Kentor Gold’s Managing Director Simon Milroy said:

“Three weeks after the first ore was fed into the refurbished mill, the mill is achieving a sustained throughput at the designed production rate of 260,000 tpa. We expect further increases in throughput over the coming months.”

Extension of closing date for Rights Offer

Due to the imminent likely re-rating of Kentor Gold Limited as a gold producer, the Company has decided to extend the Closing Date for the Rights Issue.

The production of gold at the Murchison Project in WA is a significant event in the Company’s history. It is reasonable to expect that once the first gold pour is effected the Company will be re-rated as a producer. The gold pour is expected to take place within the next 10 days.

Kentor Gold Ltd ACN 082 658 080

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The Company wished to provide shareholders with sufficient time to consider the implications of this changed status of Kentor Gold to a gold producer, in the context of the continuing exploration successes of high grade discoveries at both the Jervois Copper-Silver-Gold Project and Murchison. Therefore, the Company has decided to extend the Closing Date for the Rights Issue to 17 August 2012. All other terms of the Rights Issue remain the same.

Any queries, can be directed to the Kentor Gold Shareholder Information Line on 1300 366 176 or for international callers, +61 2 8280 7420, Monday to Friday between 8.30 am and 5.30 pm (AEST).

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