KGL RESOURCES LIMITED — Capital/Financing Update 2012

Feb 6, 2012

==> picture [53 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [54 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [54 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [53 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [54 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [54 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [53 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [54 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [54 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

7 February 2012

Kentor Gol d (ASX: KG L ) is an Australian-b a sed, emer g ing midtier gold co m pany with a dvanced projects in Australia and the Kyrgyz Rep u blic.

Formed in 1 998 and list e d on the ASX in 2 005, the Company expects to c ommence h i gh grade gold production at the M urchison gold project i n mid 2012.. At Jervois in the Northern Territory, th e Company i s studying the feasibilit y of developing a large, high grade copper-silver resource with potenti a l for the pro d uction of gold and other base meta l s. In the Kyr g yz Republi c , Kentor Gold is rea d y to procee d with the development of the C o mpany’s 80% owned high grade, very low cost Andash Gold-Copp e r Project once site access h a s been obtained. A ndash is ta r geted to produce 70, 0 00 oz gold a nd 7,400 tonnes cop p er pa for an initial six years, wit h high pot e ntial for expansion.

==> picture [56 x 5] intentionally omitted <==

==> picture [57 x 5] intentionally omitted <==

==> picture [43 x 5] intentionally omitted <==

Issued capital:

106.2 millio n ordinary sha r es 2.7 million u n listed option s

Market Capitalisation 6 February. 2 012: $134 million

Kentor Gold approves Murchison Gold Project, W.A. (Burnakura and Gabanintha)

• Production to begin in June 2012

• Marks Kentor’s commencement as gold producer

The B o ard of Ke n tor Gold L imited (“K e ntor Gold” or “the Compa n y”) has ap p roved the d evelopment of Phase 1 of the Murchison Gold Project .

The ne w ly named Murchison Gold Project encompasses the gold as s ets owned by Kentor G old in the Murchison r egion of Wester n Australia and comp r ises the B urnakura g old and Gabani n tha gold-co p per project s .

The Murchison pr o ject will co m mence pro d uction in J u ne 2012 as the first phase of a four-phas e expansion strategy.

• Initial production is sch e duled at a r a te of 24,00 0 ounces of gold a y ear from a combinati o n of open pit and undergroun d mining at Burnakura over an ini t ial three and a half y ears. How e ver, further exploration drilling is expected t o increase p roduction a n d extend m ine life. Work is we l l advanced on re-activ a ting the for m er mine and plant. Good metallurgical perf o rmance is e xpected, the previo u s operatio n having a chieved 9 4 % gold recoveries f rom the on-site proces s ing of underground ore. Capit a l cost of this first pha s e is $14.8 m illion of which $2 million has alr e ady been s p ent.

• The secon d phase, tar g eted to co m mence during 2013, will be the a ddition of a parallel he a p leaching o peration which will i n crease the production f o r minimal a dditional capital fro m already ac q uired equi p ment, and lower the operating c o st.

• The third phase will b e an expan s ion of the C IP plant from 260,0 0 0 to 500,00 0 tonnes a y e ar.

• The fourth p hase will b e the flotati o n of copper - gold ore to produce a copper co n centrate.

The firs t phase has a forecast c ash operati n g cost of $ 1 ,223 per ounce. While high due to the low initial t h roughput rate of the proces s plant, the c ost is expe c ted to redu c e significantly in the

==> picture [53 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [54 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [54 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [53 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [54 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [54 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [53 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [54 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [54 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

==> picture [55 x 58] intentionally omitted <==

second phase with t h e small ad d itional capit a l cost and i n the subse q uent phase s . The ore fed to the plant during t h e first phas e averages 3 g/t gold. Recruitment

Key rol e s of Gener a l Manager, Mining Ma n ager, Process Manager and Commercial Mana g er have been fill e d. Candid a tes have al s o been ide n tified for a significant number of ope r ational role s and will be eng a ged progressively over t h e next 3 m o nths.

Heap Leach Scoping Study

The he a p leach pl a nt from th e Indee Gold Mine in W.A. was p urchased a nd relocat e d to the Burnak u ra Mine site in 2011. The elution plant and gold room from I n dee are pr e sently being installed at the B u rnakura CI L plant.

Recove r ies from co a rse bottle roll tests ha v e been ver y encouragi n g with resu l ts from the -12.5mm crushed samples s howing co n sistently hi g h recoveri e s (80-90%). Percolation results f o r Lewis, Reward and NOA o xide samples range fr o m good to excellent. F urther test work is re q uired on material from Autha a l and other pits.

For further information contact:

Mr Sim o n Milroy Managi n g Director Phone: ( 07) 3121 3 2 06 Email: info@kento r gold.com.a u

Mr. David Waterhouse Investo r Relations Phone ( 0 3) 9670 50 0 8 Email: dwaterhouse@waterhouseir.com.au

Kentor Gold Limited

www.kentorgold.com.au

==> picture [41 x 37] intentionally omitted <==

==> picture [460 x 650] intentionally omitted <==

Page 3 of 4

7 February 2012

Kentor Gold Limited

www.kentorgold.com.au

==> picture [41 x 37] intentionally omitted <==

Kentor Gold has announced an initial Inferred Resource at Burnakura of 10.6 million tonnes @ 1.5 g/t gold for a total of 516,000 oz gold at a 0.5 g/t cut off, including a high grade component of 3.2 million tonnes @ 2.9 g/t for 298,000 oz gold at a 1.5 g/t cut off.

The Company has also announced an initial inferred Resource for Gabanintha of 4.5 million tonnes @ 1.4 g/t gold for a total of 203,000 oz gold at a 0.5 g/t cut off, including a high grade 1.3 million tonnes @ 2.9 g/t for 121,000 oz gold at a 1.5 g/t cut off. The Resource also includes 450,000 tonnes @ 0.5% copper. Gabanintha is located just 20 km to the east of Burnakura.

The information in this report that relates to mineral resource estimation for Gabanintha and 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

Page 4 of 4

7 February 2012