KGL RESOURCES LIMITED — Management Reports 2011

Dec 7, 2011

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Kentor Gold Ltd Date of Lodgement: 8/12/11

Title: “Company Insight – MD Milroy Updates Major Projects”

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Highlights of Interview

• Explains great metallurgical test work at Jervois.

• Jervois ore body continuing at depth; grade increasing.

• Jervois potentially Kentor’s largest project.

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• Updates Burnakura feasibility study.

• Confidence about start up for Andash project in the Kyrgyz Republic.

• Exploration & the outlook for 2012.

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Record of interview:

companyinsight.net.au

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Kentor Gold Ltd (ASX cod e : KGL; m arket capitalization o f ~$120m) is progressing the Jervois copper-sil v er-gold pr o ject (Nort h ern Territ o ry, Austral i a), the Bu r nakura/Ga b anintha gold p r oject (Western Austr a lia), the A ndash Gol d -Copper Project (Ky r gyz Repu b lic) and several exploratio n projects. O n 21 Nov e mber, you described t he first ro u nd of meta l lurgical test wo r k at Jervoi s as a great result. Ca n you expla i n the resul t s?

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Managing Director Simon Milroy

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In sum m ary they p oint to favourable pr o cessing co s ts at Jervo i s. The fir s t metallur g ical test work conducted b y Kentor G old on th e core fro m the rece n t diamond drilling a t Jervois produc e d a 26% c opper con c entrate gra d e at a rec o very of 9 4 %. This is a very go o d result and in d icates that the ore is very ame n able to co n centration by flotati o n. This re s ult was achiev e d at a rela t ively coarse grind siz e of P80 9 0 micron. F urther test work will e xamine the res u lts at eve n coarser g r ind sizes. A coarse g r ind size i m plies that a n operatio n would have l o wer capita l and oper a ting costs w hen com p ared to si m ilar opera t ions whic h require more g r inding to achieve the n ecessary f i ner grind s i ze.

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companyinsight.net.au

You a l so announ c ed that m ining and engineeri n g studies are under w ay and y o u have comme n ced a Res o urce upgr a de. Jervo i s currently has an Inf e rred JOR C Resource e stimate of 8.8 m illion ton n es at 1.3% copper fo r a total of 113,000 to n nes of co n tained cop p er, plus 7.6 mi l lion ounce s of silver. Can you explain how the drill i ng you’ve undertake n - after definin g the initial Resource - should lea d to a Reso u rce upgra d e?

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Simon Milroy

It com e s down to m ultiple hi g her grade d rill results beneath th e current R e source. T h e initial Resour c e estimate was limit e d to a dep t h of 200 m below th e surface s o that the R esource could p otentially b e mined u s ing open c u t methods . The recent diamond d rilling programme focuse d on infilling the regio n from 200 m below s u rface to 400m below s urface. Th e results showe d that the m ineralisation is vertic a l and conti n uing dow n with the d eepest of our holes interse c ting the m ineralisati o n at a de p th of 470 m below s u rface. Wh i le the ore body is narrow e r at depth, the grade o f the ore a ppears to b e increasi n g with de pt h with the deepest hole re t urning the h ighest gra d es – 72 m e tres at 3.2 7 % copper, 51.33 g/t o f silver and 1.16 g/t gold d o wn hole fr o m 414 me t res (horizo n tal true width 16 met r es). We ex p ect to co m plete an update d Resource e stimate fo r Jervois la t er this mo n th.

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companyinsight.net.au What a r e the next m ajor obje c tives or m i lestones to progress J e rvois? Is t h is potenti a lly your largest p roject?

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Simon Milroy

We are currently w orking on a scoping study whic h is sched u led for co m pletion in the first quarter 2012. The results fro m the scop i ng study w ill be use d to set the direction f o r a full feasibility study t o be condu c ted in 201 2 . All of th e known m i neralisatio n at Jervoi s is open at dept h and yes, the Jervoi s project h a s the pote n tial to be the largest project fo r Kentor Gold. H owever f u rther drilli n g is requir e d.

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companyinsight.net.au

Can yo u update pr o gress with the Feasib i lity Study a t Burnaku r

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Simon Milroy

The fe a sibility stu d y at Burn a kura has t ak en longer than plann e d due to a number of reasons. Contra c tor and c o nsultant a v ailability i s tight whi c h has cau s ed some d elays. Init i ally the feasibility study w as based e n tirely on o pen pit mi n ing. However, it so o n became a pparent that it m ay be mo r e attractiv e to resum e undergro u nd mining at the NO A 2 deposit and use open pit methods a t the other 14 old ope n pits. The p revious operators wer e using sm a ll scale, hand h e ld method s for stoping the ore. W e are tar g eting areas where lar g er scale st o pes can be dev e loped whi c h should increase pro d uctivity an d reduce costs.

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We no w anticipat e that the fe a sibility study will be c ompleted n ext month, January 2 0 12.

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companyinsight.net.au Will t h e delays w ith the fe a sibility st u dy also d e lay the pl a nned star t of produ c tion for Burnak u ra?

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Simon Milroy

No. W hile contin u ing the st u dy, we ha v e also cont i nued the r e furbishme n t of the B u rnakura plant a t the site, c o nducted an open pit m ining tend e r and conti n ued recrui t ing the se n ior staff for the p roject. W e remain on track to co m mence pr o duction in June 2012.

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companyinsight.net.au

Of the e xploration projects w h ere you ar e yet to pr o ve a Resource, which l ook to be t he most promis i ng so far?

Simon Milroy

The Bekbulaktor p rospect on the Bashk o l license i n the Kyrgyz Republic is at an ea r ly stage but is potentially a very e x citing gol d /copper discovery. Our geologi s ts have i d entified anomalous gold a n d copper i n out croppi n g granite o ver an are a 2km by 1 k m.

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The be s t trench re s ult returne d 12m at 1 4 .07 g/t gol d and 1.8% copper.

Recon n aissance w o rk over th e rest of th e Bashkol license has f o und other areas of an o malous copper and gold i n out croppi n g granites on the lice n se.

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It is ea r ly days y e t, but we a re looking forward to commenc i ng some d r illing next year as soon as the weath e r permits.

companyinsight.net.au

With s e veral projects now looking pr o mising, h o w will Kentor Gold prioritise its focus during 2 012?

Simon Milroy

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The nu m ber 1 pri o rity for Ke n tor Gold i n 2012 is t o get Andash into con s truction. N u mber 2 is to c o mmence g o ld product i on at Bur n akura in si x months a n d start to g row the R e sources throug h exploratio n . Number three is to c omplete scoping and f easibility s t udies for J e rvois.

companyinsight.net.au

What i s the strate g y to add v a lue to the Company? How do you demons t rate this t o current and po t ential inve s tors?

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Simon Milroy

Our company str a tegy is to acquire, d evelop an d operate advanced p r ojects which have existin g Resource s . This stra t egy has be e n workin g well for u s and I am looking fo r ward to

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� enterin g producti o n in the n e ar future s o that we w ill have t h e ability t o rapidly g row the compa n y.

We ac q uired And a sh during the GFC a nd we ac q uired Jink a Minerals during a period of weak m arkets an d uncertain t y. We h a ve demonstrated our ability to take adva n tage of volatil e times. T here will be more v olatile ti m es ahead, and we lo o k forwar d to the opport u nities that t hey will u n doubtedly p resent to K entor Gol d .

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companyinsight.net.au Thank y ou Simon.

To read past Company Insights please visit www.companyinsight.net.au

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The data i n this report that relates to Miner a l Resource Esti m ates is based on information evaluated by Mr Si m on Tear who is a Member of The Australasian Institute o f Mining and M e tallurgy (MAusI M M) and who h a s sufficient exp e rience relevant t o the style of m i neralisation and type o f deposit under c o nsideration an d to the activity w hich he is under t aking to qualify a s a Competent P erson as define d in the 2004 Edition of t he Australasian C ode for Reporti n g of Exploratio n Results, Mineral Resources and O re Reserves (th e “JORC Code”). Mr Tear is a full‐time e m ployee of Hell m an & Schofield P ty Ltd and he c o nsents to the in c lusion in the re p ort of the Mine r al Resource in t h e form and context in w hich they appe a r.

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The data i n this report re l ating to Jervois exploration is b ased on inform a tion compiled b y Rudy Lennar tz , who is a me m ber of the Australian Institute of Mini n g and Metallur g y and a full tim e employee of Jin k a Minerals Ltd. Mr. Lennartz h as sufficient expe r ience which is relevant to the style of t h e mineralisation and the type of deposit under c o nsideration and to the activity t o which he is un d ertaking, to qualify as a Competent P e rson as defined in the 2004 Ed i tion of the Aus t ralasian Code f o r Reporting of E xploration Res u lts, Mineral Resources a nd Ore Reserve s . Mr.Lennartz h a s consented to t he inclusion of t h is information i n the form and co ntext in which i t appears in this report.

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The explor a tion results in t his report relati n g to Bashkol a r e based on info r mation compile d by Simon Milr o y, who is a me m ber of the Australasi a n Institute of Mi n ing and Metall u rgy and a full ti m e employee of K entor Gold Limit e d. Mr. Milroy h a s sufficient expe r ience which is relevant to the style of t h e mineralisation and the type of deposit under c o nsideration and to the activity t o which he is un d ertaking, to qualify as a Competent P e rson as defined in the 2004 Ed i tion of the Aus t ralasian Code f o r Reporting of E xploration Res u lts, Mineral Resources a nd Ore Reserve s . Mr. Milroy ha s consented to t h e inclusion of t h is information i n the form and c o ntext in which it appears in this report.

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DISCLAIME R : Gryphon Mana g ement Australia P ty Ltd trading as C ompany Insight h as taken reasonable care in publis h ing the informati o n contained in this Co m pany Insight. It i s information giv e n in a summary form and does n ot purport to be complete. This i s not advice. The information contained h erein should not b e used as the ba s is for making an y investment decision. You are solel y responsible for a ny use you choo s e to make of the inform a tion. You should seek independe n t professional advice before maki n g any investment decisions. To t h e fullest extent p ermitted by applicable l aw, Company Insight is not responsible or liable for any conseq u ences (including , without limitat i on, consequences caused by negligence) of any use what s oever you make o f the informatio n , including with o ut limitation any loss or damage ( i ncluding any loss of profits or consequen t ial loss) suffered b y you or a third party as a result of the use.

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