KGL RESOURCES LIMITED — Investor Presentation 2012

Jul 19, 2012

Kentor Gold Ltd Date of Lodgement: 20/7/12

Title: “Company Insight – Explains Recent Excellent Exploration Results”

Highlights of Interview

• Explanation of falling share price.

• Ramping up of the Murchison Gold Project.

• Increasing Resources at Murchison.

• Jervois copper-silver-gold project continues to to improve.

• The latest with the Andash project in the Kyrgyz Republic.

Record of interview:

companyinsight.net.au

Kentor Gold Limited (ASX code: KGL) has been consistently announcing excellent exploration results over the last several months. The company is about to start gold production at the Murchison Gold Project and has now just announced the results of a scoping study of the heap leach stage that is expected to lower costs at Murchison. Yet the Kentor Gold share price has fallen significantly this year. What’s your reading on that? What feedback are you getting from the investment community?

Managing Director Simon Milroy

Our share price has fallen but we have to view it in the broader context of the market and we are not alone – the whole of the sector has struggled, resources generally and golds in particular. Undoubtedly there is disappointment with the continued delays at Andash but we have received good support for our Australian asset diversification.

companyinsightight.net.au

Can you remind us of the 4 phases in the development program at the Murchison Gold Project?

Managing Director Simon Milroy

Phase 1 is the refurbished 260,000tpa CIL plant currently being commissioned and due to produce 24,000oz p.a. Phase 2 comprises the Heap Leach (plant already owned) which also includes a 1mtpa crushing circuit which will also be able to feed the CIL plant upgrade to 500,000tpa which is planned for Phase 3. Flotation of copper/gold ore from Gabanintha comprises Phase 4.

companyinsightight.net.au

Is the project on track for first gold in the middle of 2012? What about capital budget?

Managing Director Simon Milroy

First gold production is forecast for the end of July. Capital expenditure for Phase 1 was forecast at $14.8million and is within budget. The leach tanks are now all full of slurry and reagents and we have just moved into 24 hour operations. A contract has been signed for the refining of the gold and we now have a full complement of operational staff.

companyinsightight.net.au

The current inferred Resource estimates at Murchison Gold Project are 15.1 million tonnes at 1.5 g/t containing 719,000 ounces of gold (0.5 g/t gold cut off). Will the ore for the heap leach come from this current Resource, or from an expanded Resource as the effect of the recent exploration successes are taken into account ?

Managing Director Simon Milroy

Mining is well underway at Murchison and lower grade material destined for the heap leach has already been mined to access the higher grade ore for the plant. The recent drilling campaign has produced very encouraging and in some cases, exceptional results both in the existing pits and extensions to the current resource area. These results are being compiled and an upgrade to the resource and mine plan are due to be finalised over the next couple of months. The upgraded plan will further optimise Phase 1, provide more certainty for the grade and tonnage available for the heap leach in Phase 2 and allow an evaluation of the economics for Phase 3.

companyinsightight.net.au

You’ve outlined a $7.5 million capital cost for the heap leach. Can you explain some of the expected fundamentals of the heap leach project such as timing (of first loaded carbon to the plant), ore stacked, recoveries, operating costs and gold production per annum.

Managing Director Simon Milroy

Work on permitting for the heap leach has commenced and is expected to be finalised before the end of the year. Construction will then begin immediately with first gold production from the heaps expected by midyear 2013. Operating costs were estimated at around $11/tonne of ore processed in the recent scoping study and gold processing costs are targeted to be in the range $500-550/oz. Recoveries, production and project life will be more accurately forecast when grade and tonnages are re-defined in the resource upgrade currently underway.

companyinsightight.net.au

The recently completed drilling at the NOA7 & 8 pits has produced some high grade results with mineralisation down 200m below the old existing pits, yet NOA7 & 8 are not currently part of the phase 1 mine plan. How quickly can you expand mining into these areas?

Managing Director Simon Milroy

The drilling at NOA7 & 8 is very encouraging. The results will be evaluated in the current resource upgrade and mine plan re-assessment and the pits are very likely to be included in the plan.

companyinsightight.net.au

Kentor announced that drilling at the Jervois Copper-Silver-Gold Project in the Northern Territory continues to indicate significant mineralisation in targeted areas. How will the results change the scope of the project? Why don’t you keep on drilling at Jervois?

Managing Director Simon Milroy

The current Jervois drilling campaign is nearing completion and is principally aimed at resource confirmation and extension and providing samples for metallurgical testing for the Feasibility Study. The scoping study recently confirmed an economically viable project but with greater economies of scale available as a result of a resource upgrade due later in the year, we will then have a clearer picture of the potential of the project. Evaluation of further potential will continue but the costs of further resource delineation and extension has to be balanced against the timing of delivering value to shareholders.

companyinsightight.net.au

What is the significance of the recently announced intersections from the Bellbird deposit at Jervois?

Managing Director Simon Milroy

The Bellbird deposit is located approximately 6km south of the main Marshall-Reward deposit at Jervois. The recent results are very significant, in addition to the high grade results from the diamond drilling, we have drilled a number of RC holes to the north of the current resource. These RC holes are at shallow depths and potentially will define additional high grade copper resources which ar accessible to open cut mining.

companyinsightight.net.au

The high grade, very low cost Andash Copper-Gold Project in the Kyrgyz Republic is development-ready, but awaiting site access approvals. What is the latest? Why is it taking so long to get access?

Managing Director Simon Milroy

In Kyrgyz parliamentary committee meetings during April and May, the Government required that an independent environmental review of Andash be completed so as to advance negotiations with the local community. Allegations of environmental risk have been used by a small section of the community to raise anxiety about the proposed development. Whilst the ongoing delays are disappointing we are confident that any reputable environmental auditors will endorse the Andash development plan so that discussions can be progressed with the local community with any environmental concerns addressed. Earlier this month we announced the appointment of the environmental auditing partnership EMAS, a Russian international environmental consultant to conduct the review. We expect the review to be completed in 10 weeks.

companyinsightight.net.au

Finally, Kentor has just completed a placement. Can you outline the thinking behind the timing and amount? How will funds be applied to the various projects?

Managing Director Simon Milroy

It’s never a good time to ask shareholders for more money and as we all know the current environment is far from ideal – however, broadly there appears to be some consensus that the volatility in the markets will continue for some time and liquidity will likely be an increasing challenge for markets and particularly junior mining companies. We have a supportive major shareholder who has participated in the placement and is underwriting a portion of the rights issue. The funds will be used to expand the Murchison operations through the construction of a heap leach and to complete the feasibility study at Jervois. This takes us to mid-2013 by which time Kentor will be well and truly cashflow positive.

companyinsight.net.au Thank you Simon.

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The data in this report that relates to 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 full‐time employee of Hellman & Schofield Pty Ltd and he consents to the inclusion in the report of the Mineral Resource in the form and context in which they appear.

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