KGL RESOURCES LIMITED — Capital/Financing Update 2013

Aug 22, 2013

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23 August 2013

Company Update – KGL’s cash position strengthened ahead of drill program

 Proceeds from Andash sale strengthen KGL cash position

 Drilling to increase Resources at Jervois Copper-Silver-Gold Project commencing 1[st] September

KGL Resources Limited (KGL) advises that the balance of the funds from the sale of the Andash project in Kyrgyzstan has now been received in full. This puts KGL in a strong cash position with a current cash balance of approximately $14.3 M.

KGL will now transfer $3M into trust to satisfy the requirements of the Deed of Company Arrangement approved by the creditors of Kentor Minerals (WA) Pty Ltd., the wholly owned subsidiary of KGL in which the Murchison Gold Project was held. Murchison remains on care and maintenance and no longer under the control of the administrators.

With KGL in a strong cash position, a 20,000m diamond and RC drilling program is planned to commence at Jervois on 1 September 2013.

Commenting on the receipt of the funds and the drilling program, KGL Managing Director Simon Milroy said:

“Backed by a strong cash position, KGL has in Jervois a high quality project on which it can now continue to focus an active exploration program and pre-feasibility study.”

For further information contact:

Mr Simon Milroy Managing Director Phone: (07) 3071 9003

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About KGL Resources

KGL Resources Limited is an Australian mineral exploration company focussed on increasing the high grade Resource at the Jervois Copper-Silver-Gold Project in the Northern Territory and developing it into a multi-metal mine. Jervois currently has Indicated and Inferred Resources of 13.5 million tonnes @ 1.3% copper and 25.8 g/t silver for a total of 170,415 tonnes copper and 11.6 million oz silver at a 0.5% copper cutoff, together with 69,000 oz gold, 26,000 tonnes lead and 22,000 tonnes zinc.

Competent Person

The data in this report that relates to Jervois Mineral Resource Estimates is based on information evaluated by Mr Simon Tear who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient experience 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 (the “JORC Code”). Mr Tear is a Director of H&S Consultants Pty Ltd and he consents to the inclusion in the report of the Mineral Resource in the form and context in which they appear.

The data in this report that relates to Jervois cut off grades and mining assumptions is based on information evaluated by Mr Simon Milroy who is a The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient experience 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 (the “JORC Code”). Mr Milroy is a full-time employee of Kentor Gold Limited and he consents to the inclusion in the report of the cut off grades and mining assumptions in the form and context in which they appear.

The data in this report that relates to exploration results for Jervois 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 Minerals (NT) Pty Ltd. 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.

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