KGL RESOURCES LIMITED — Capital/Financing Update 2012

Mar 4, 2012

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5 March 2012

About Kentor Gold:

Aus t ralian-based Kentor Gol d Limited (AS X : KGL) is en t ering the ran k s of gold mini n g companie s in 2012. The Company is progressing a pipeline of a d vanced projects in Australia and the Kyr g yz Republic.

 The Murchison Gold Project in Western Austra l ia - sche d uled to com m ence high g r ade gold mining at the Bur n akura plant in mid-2012, with the pote n tial to add g old-copper p roduction from the neig h bouring G a banintha dep o sit.

 The high g rade, very low cost Andash Gold-Copper Project in the Kyr g yz Republic – developm e nt-ready, awa i ting site acc e ss and targe t ing 2013 to c o mmence pr o duction at 7 0,000 oz gold and 7,400 tonnes copper pa for an initial six years, w ith high po t ential for exp a nsion.

 The Jervois Copper-Silver-Gold Project in the Northern T e rritory – targ e ting 2014 st a rt-up followi n g current feas i bility studie s into devel o ping the high grade copp e r-silver reso u rce with pote n tial for gold a nd other bas e metals.

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Issued capital:

106. 2 million ordi n ary shares 2.7 m illion unliste d options

Market Capitalisation

2 M a rch 2012: $1 5 0 million

Murchison Gold Project Update

Murchison Gold Project on track for mid2012 production start-up

• Mining Contract Awarded

• Plant refurbishment on schedule

• Resource drilling continuing - follows high grade gold intersections in mine pit shell

Kentor Gold Limi t ed (“Kentor Gold” or “the Com p any”) is please d to repo r t that the Murchiso n Gold Project in Weste r n Australi a is on schedule for commissi o ning in June 2012. Pro d uction is due to com m ence at a n initial rate of 24,000 oz g old per ye a r at the B u rnakura site where very hi g h grade g o ld interse c tions were reported l a st week from d r illing in the Lewis pit s h ell.

Open Pit Mining Contact

The o p en pit m ining contract has been awarded to Minep o wer. Mobilisation of the minin g equipme n t to the Burna k ura site is now underway and m ining is s c heduled to co m mence o n site in late Marc h subject to final approv a ls.

The ini t ial open pi t mining fleet that is n o w either on site or mobilising to site o ver the ne x t two wee k s includes: 1 x Ko m atsu PC 1250 Excav a tor 3 x Ko m atsu 785 T rucks

• 1 x Ca t erpillar D9 Dozer 1 x Ca t erpillar 14 M Grader

• 1 x Hin o 6 Wheel W ater cart 1 x Hin o Service V ehicle

.

Kentor Gold Limited

www.kentorgold.com.au

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Figure 1 Murchison Gold Project General Manager Patrick Baldock inspects mining trucks at Burnakura

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Figure 2 Excavator delivered to Burnakura site

Mining will commence at the Reward pit. After two months the mining fleet will be moved to the adjacent Lewis pit that now may offer the potential of much higher grade material following the drilling results detailed in the ASX announcement of 27[th] Feb 2012.

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5 March 2012

Kentor Gold Limited

www.kentorgold.com.au

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Plant Refurbishment

Refurbishment of the processing plant is on schedule and the crushing circuit is anticipated to be ready for commissioning by mid-March. Crushing of existing stockpiles will then commence which will provide a large stockpile of fine ore ahead of the planned commencement of milling in June.

All process and mechanical designs are now complete.

All major contracts have been let including

• Concrete works,

• Electrical installation

• Primary and secondary steel fabrication

• Plate-work and leach tanks fabrication

• New liners and lifters for the ball mill

• New tailings line piping (3.5km)

Figure 3 Primary crusher and ore conveyors

One of the three 1250kVA gensets is being overhauled in Perth. The remaining two gensets require only minor servicing on site.

The elution circuit is being refurbished by Interquip at that company’s Perth workshop, and the gold room is being refurbished on site.

All conveyor belting has now been replaced or repaired.

Non-destructive testing has been successfully completed on the girth and pinion gears for the ball mill.

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5 March 2012

Kentor Gold Limited

www.kentorgold.com.au

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Figure 4 Installing new mill feed conveyor belting

Site Services

A direct microwave link to the fibre optic network in Meekatharra is now fully operational allowing high speed internet access. Wired and wireless network access has been deployed throughout the site and camp with site servers to be installed this week. Cabling of satellite TV access throughout the camp is now completed.

With the influx of construction and operation personnel, accommodation and catering services are now managed by Action Catering. A regular charter flight has commenced with Skippers Aviation to transfer personnel between Perth and Meekatharra.

A reverse osmosis (RO) water treatment plant has been installed and commissioned at the camp. Site offices are being refurbished and furnished.

Recruitment

Recruitment is progressing well. The key management roles of General Manager, Mine Manager, Processing Manager, Commercial Manager and Geology Manager were filled prior to December and this has been crucial in ensuring oversight of construction and development activities.

During February, the Purchasing and Warehouse roles were filled. The on-site laboratory is now fully staffed and this will be supervised by the Plant Metallurgist who commenced last week.

Interquip is conducting the refurbishment and construction of the plant and its experienced personnel will be on hand during commissioning to ensure a smooth start-up.

Four geologists are on staff in WA and are being supported by additional contract geologists as required.

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5 March 2012

Kentor Gold Limited

www.kentorgold.com.au

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The open pit mining contractor, Minepower, will be relocating 17 of its staff to Burnakura to operate and supervise the mining fleet.

Emergency Rescue Training commences this month for all mining and processing staff and contractors. Murchison Gold Project General Manager Patrick Baldock said: “While there is a lot of activity in the Murchison region, our project at Burnakura is the only large scale mine that will be in operation within 100 km. We are fortunate to have the regional Royal Flying Doctor Service base, hospital, fire station and ambulance only 50km away in Meekatharra. However, we still need to be ready to deal with any unforeseeable incident so we are putting a lot of effort into ensuring our people are well trained and well prepared.”

Resource Drilling

In January, the Development Team completed 637m of Diamond HQ core for geotechnical assessment and 274m of PQ diamond core for metallurgical test work. Now that the assessment is complete all of this core will be cut and sent off for assay over the next few weeks.

The reverse circulation (RC) drill has now completed 7,250m of the planned 20,000m drilling program. The rig is achieving an average of 250m per day which is better than anticipated.

Grade control RC drilling has been completed at Reward and resource RC drilling has been completed at the Federal North, Lewis and Alliance pits.

As announced last week, two diamond holes were drilled 50m apart within the Lewis pit design and to the north of the existing pit where mining previously occurred. The results included:

• 5m @ 102.2g/t gold from 43m (incl. 1m @474.5g/t gold)

• 17m @ 9.6g/t gold from 43m (Incl. 1m @ 103 g/t gold)

The RC drilling program to define the extent of the high grade mineralisation at Lewis is complete with results from the laboratory now pending.

Resource drilling is now underway at New Alliance and is anticipated to be completed by midMarch. One week of sterilisation drilling is then planned covering proposed waste dump areas.

The rig will then move on to the NOA line of pits where some large gaps in historical drilling will be in-filled and extensions to the high grade mineralisation at NOA 7/8 will be tested before moving to the nearby Gabanintha tenements. Gabanintha drilling is designed to test a number of gold and copper targets recently identified in a HeliTEM survey, and to extend mineralisation adjacent to existing pits to further increase the resource.

While the RC rig is at Gabanintha, results from the Bunakura drilling campaign will be analysed in preparation for a further drilling campaign at Burnakura to follow up on potential extensions to mineralisation and additional infill and validation drilling at Federal City and Authaal deposits.

With mining to commence initially at the Reward and Lewis deposits, the priority for updating the resource estimation will be given to these areas. This work is expected to be completed in May. Updates on other resources drilled during the current drilling campaign are targeted for July 2012.

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5 March 2012

Kentor Gold Limited

www.kentorgold.com.au

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Figure 5 RC drilling rig at Reward deposit

For further information contact: Mr Simon Milroy Mr. David Waterhouse Managing Director Investor Relations Phone: (07) 3121 3206 (03) 9670 5008 info@kentorgold.com.au dwaterhouse@waterhouseir.com.au

The information in this report that relates to exploration results for Burnakura is based on work completed by Mr Keith Mayes who is a full-time employee of Kentor Gold Limited and a Fellow of the Geological Society of London. Mr Mayes 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 Mayes has consented to the inclusion of this information in the form and context in which it appears in this report.

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5 March 2012