KGL RESOURCES LIMITED - Capital/Financing Update 2011

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21 November 2011

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 produ c tion at Burnakura in Western A u stralia in m id-2012, with potential additional goldcopper p r oduction fr o m the neighbourin g Gabanintha deposit. 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.

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Jervois copper-silver-gold mine development study makes strong progress

High metallurgical recoveries and concentrate grades achieved 26% Copper concentrate grade at 94% recovery
Resource upgrade commenced
Mining and Engineering studies under way

Kentor G old Limite d (Kentor Gold or the Co m pany) is pleased to report e ncouraging initial results in the s coping stu d y being underta k en into the developme n t of an ope n pit multi-m e tal mine at the J e rvois Proje c t in the Northern Territo r y.

Metallurgical testing:

Prelimi n ary results o f several b a tch tests o n drill core c o mposite materia l from hole R J169 (72m @ 3.27% C u, 0.25% P b , 0.11% Zn, 51. 3 3g/t Ag a n d 1.16g/t A u from 41 4 m) have n o w been receive d . This has a chieved a b est overall response fr o m initial testing indicating th e production of a conce n trate with a grade of 26% co p per at 94% recovery (Figure 1).

Comm e nting on t h e results, K entor Gol d Managing Director Simon M ilroy said: “T o achieve l e vels of this kind in th e very first round of m e tallurgical test work is a g reat result.

“T h ere is still a lot mor e work to be done but these m e tallurgical r e sults, together with th e recent ou t standing ex p loration drilling results, continue to point the w a y to the de v elopment o f a major multi-metal mi n e.”

Issued capital:

1,062.1 milli o n ordinary s h ares 63.6 million u nlisted optio n s

Market Capitalisation

18 Novemb e r. 2011: $11 7 million

“T h e high concentrate gr a des and g o od recoveries were ac h ieved at a r e latively coarse grind siz e .”

Test w o rk is also b eing conducted on H Q diamond core from RJ124 ( 5m @ 3.03 % Cu, 19.14 g /t Ag, 0.44 g /t Au from 297m and 11m @ 1.67% Cu, 15.99g/t Ag , 0.17g/t Au from 331m) that lies approx. 350m to th e south, alo n g strike of R J169. This will help provide a measure o f the varia b ility in meta l lurgical per f ormance along s t rike and at l o wer grades.

Kentor Gold Limited

www.kentorgold.com.au

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Figure 1 Jervois copper concentrate production at Ammtec laboratory

Surveyors are on site this week. The substantial infrastructure already existing at Jervois will be accurately located including the tailings storage facility, exploration camp and infill topography over existing resource areas.

Upgrade of mineral Resource:

Hellman & Schofield who completed the initial Inferred Resource estimate of 8.8 million tonnes @ 1.3% copper and 26.7g/t silver have commenced an upgrade to the resource model incorporating the recent drilling results and survey information. Additional density measurements of core from current and historical drilling will also be incorporated into the upgraded Resource estimate.

Mining and processing studies:

Auralia Mining Consulting have been engaged to run pit optimisations and schedules on each resource deposit at Jervois. When completed, mining costs and underground inventory will be estimated to enable a mining schedule to be produced.

Knight Piesold have been engaged to conduct the geotechnical and water management assessment for the Jervois Project. They have considerable experience in tailings management and other related aspects of similar projects in Australia. Their study will assess the following key areas

Tailings management
Plant site foundation evaluation
Groundwater assessment
Surface water management.

Lycopodium were identified as having the best technical team with demonstrated capabilities related to copper beneficiation and copper concentrate handling. Lycopodium are responsible for definition of the engineering design to support the capital and operating cost estimates to an accuracy of ±35%.

This includes development of the process flow diagram with assistance from metallurgical consultant Arthur Dunstan and the results from ALS Ammtec’s Perth laboratory.

The scope of their work includes

Prepare major equipment list
Identify and determine site infrastructure requirements

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21 November 2011

Kent o r Gold Limited

w w w.kentorgol d .com.au

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High level w ater balanc e
Plant layout
Preliminary e lectrical lo a d requirem e nts  Identify trad e -off studies

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Figure 2 Grade Recovery curve for RJ169
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Future activity:

Followi n g the ex c ellent con c entrate g r ade and r ecovery a c hieved, further testi n g will be undert a ken to det e rmine wh e ther econ o mies can be achieved through c oarser gri n ding and reduce d lime consumption.

A futur e program of test wo r k is being planned to analyse t h e metallur g ical perfo r mance of sulphid e minerals in core fr o m the Be l lbird depo s it and oxi d e material from the MarshallRewar d and Bellbird deposits.

The re s ults of the scoping st u dy will be available i n the first q u arter 201 2 and it is a nticipated that thi s will lead t o a full feasibility stud y on the pro j ect in 201 2 .

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21 Nov e mber 2011

Kentor Gold Limited

www.kentorgold.com.au

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Figure 3 Map of Jervois showing the prospect locations.

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21 November 2011

Kentor Gold Limited

www.kentorgold.com.au

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For further information contact:

Mr Simon Milroy Managing Director Phone: (07) 3121 3206 Email: [email protected]

Mr. David Waterhouse Investor Relations Phone (03) 9670 5008 Email: [email protected]

Competent Person Statement

The data in this report that related to exploration results is based on information compiled by Rudy Lennartz, who is a member of the Australian Institute of Mining and Metallurgy and a full time employee of Jinka Minerals 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.

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).

Mr Tear 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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21 November 2011

AI assistant

KGL RESOURCES LIMITED Capital/Financing Update 2011

65179_rns_2011-11-20_c2f9c55f-19d9-42f0-8e96-3e55f69ce07c.pdf

21 November 2011

Jervois copper-silver-gold mine development study makes strong progress

Metallurgical testing:

Issued capital:

Market Capitalisation

Upgrade of mineral Resource:

Mining and processing studies:

Future activity:

For further information contact:

Competent Person Statement

AI assistant

KGL RESOURCES LIMITED — Capital/Financing Update 2011

65179_rns_2011-11-20_c2f9c55f-19d9-42f0-8e96-3e55f69ce07c.pdf

21 November 2011

Jervois copper-silver-gold mine development study makes strong progress

Metallurgical testing:

Issued capital:

Market Capitalisation

Upgrade of mineral Resource:

Mining and processing studies:

Future activity:

For further information contact:

Competent Person Statement

More from KGL RESOURCES LIMITED

KGL RESOURCES LIMITED Capital/Financing Update 2011