KGL RESOURCES LIMITED — Interim / Quarterly Report 2007

Oct 29, 2007

Appendix 5B

Rule 5.3

Mining Exploration Entity Quarterly Report

$\overline{1}$

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

KENTOR GOLD LIMITED

ABN

52 082 658 080

Quarter ended ("current quarter")

30 SEPTEMBER 2007

Consolidated statement of cash flows

		Current quarter	Year to date
Cash flows related to operating activities			(9 months)
		\$A'000	\$A'000
1.1	Receipts from product sales and related debtors	15	20
1.2	Payments for
	(a) exploration and evaluation	(382)	(1, 104)
	(b) development	(12)	(22)
	(c) production
1.3	(d) administration Dividends received	(305)	(820)
1.4	Interest and other items of a similar nature received	31	54
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other (provide details if material)
	Net Operating Cash Flows	(653)	(1,872)
1.8	Cash flows related to investing activities Payment for purchases of:
	(a) prospects
	(b) equity investments
	(c) other fixed assets	(71)	(74)
1.9	Proceeds from sale of:
	(a) prospects
	(b) equity investments (c) other fixed assets		19
1.10	Loans to other entities	(23)	(23)
1.11	Loans repaid by other entities
1.12	Other (provide details if material)	(5)	(5)
	Net investing cash flows	(99)	(83)
1.13	Total operating and investing cash flows (carried forward)	(752)	(1,955)

⁺ See chapter 19 for defined terms.

Appendix 5B Mining exploration entity quarterly report

1.13	operating and investing cash flows Total (brought forward)	(752)	(1,955)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	(172)	2,417
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings
1.18	Dividends paid
1.19	Other (provide details if material)
		(172)
	Net financing cash flows		2,417
	Net increase (decrease) in cash held	(924)	462
1.20	Cash at beginning of quarter/year to date	2,848	1,463
1.21	Exchange rate adjustments to item 1.20		(1)
1.22	Cash at end of quarter	1,924	1,924

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter \$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	117
1.24	Aggregate amount of loans to the parties included in item 1.10

1.25 Explanation necessary for an understanding of the transactions

Remuneration payments in respect of directors during the September 2007 quarter.

Non-cash financing and investing activities

$2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

$N/A$

$2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

$N/A$

⁺ See chapter 19 for defined terms.

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available \$A'000	Amount used \$A'000
3.1	Loan facilities	Nil	Nil
3.2	Credit standby arrangements	Nil	Nil

Estimated cash outflows for next quarter

		\$A'000
4.1 Exploration and evaluation		1,001
4.2	Development
	Total	1,001

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Current quarter \$A'000	Previous quarter \$A'000
5.1	Cash on hand and at bank	1.924	2,848
5.2	Deposits at call
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	1,924	2,848

Changes in interests in mining tenements

		Tenement	Nature of interest	Interest at	Interest at
		reference	(note (2))	beginning	end of
				of quarter	quarter
6.1	Interests in mining
	tenements relinquished,
	reduced or lapsed
6.2	Interests in mining
	tenements acquired or
	increased

⁺ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number	Issue price per	Amount paid up per
			quoted	security (see note 3)	security (see note 3)
				(cents)	(cents)
7.1	Preference + securities (description)
7.2	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3	+ Ordinary securities	60,988,129	60,988,129
7.4	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	1,336,997	1,336,997
7.5	+ Convertible debt
	securities (description)
7.6	Changes during quarter (a) Increases through issues (b) Decreases through securities matured,
	converted
7.7	Options (description and conversion factor)	266,667 300,000 300,000 300,000 2,500,000 100,000 100,000 100,000		Exercise price 75 cents $62.5$ cents 75 cents 87.5 cents 20 cents 30 cents 60 cents 80 cents \$1.00	Expiry date 01/07/2008 ) Termination of ) executive ) employment 31/05/2008 31/05/2009 31/05/2012 31/05/2012 31/05/2012
7.8	Issued during quarter
7.9	Exercised during quarter
7.10	Expired during quarter	333,333		62.5 cents
7.11	Debentures(totals only)
7.12	Unsecured notes (totals only)

Please Note: As previously announced, it is proposed at the next available opportunity to seek Shareholder approval for the allotment and issue of a series of options to executives. On approval, the vesting and issue of these options will be administered by the Board of Directors and once exercised, will increase the number of options from the current 3,966,667 to 6,866,667 options on issue.

⁺ See chapter 19 for defined terms.

Compliance statement

• $\mathbf{1}$ This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
• This statement does /does not* (delete one) give a true and fair view of the matters $2^{\circ}$ disclosed.

Sign here: Date: 30 October 2007 (Director/Company Secretary)

Greg Burgess

Notes

Print name:

• $\mathbf{1}$ The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• $\overline{2}$ The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

$== == == == == ==$

⁺ See chapter 19 for defined terms.