Kalimantan Gold Corporation Limited
LSE : KLG

May 09, 2011 02:00 ET

Kalimantan Gold Closes Private Placement With Freeport

FOR:  KALIMANTAN GOLD CORPORATION LIMITED

TSX VENTURE, AIM SYMBOL:  KLG

May 9, 2011

Kalimantan Gold Closes Private Placement With Freeport

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 9, 2011) - Kalimantan Gold Corporation Limited (the "Company")
(TSX VENTURE:KLG)(AIM:KLG) is pleased to announce that it has raised C$350,000 from the issue of 2,500,000
common shares at price of C$0.14 per share to a wholly owned subsidiary of Freeport-McMoRan Exploration
Corporation ("Freeport"). The common shares issued are restricted from trading through the TSX Venture Exchange
until September 7, 2011.

The placement shares will be fully paid and will rank pari passu in all respects with the existing common
shares in the Company. Application has been made for the placement shares to be admitted to trading on AIM
("Admission") and to be listed on the TSX Venture Exchange. It is expected that Admission will become effective
and that dealings in the placement shares will commence on May 12, 2011. Regulatory approval for the placement
has been received from the TSX Venture Exchange.

The Company intends to use the proceeds to fund its ongoing projects in Indonesia, as well as general working
capital purposes.

The Company and Freeport entered into a joint venture agreement in relation to the Company's KSK Contract of
Work copper project in Kalimantan, Indonesia as announced on April 19, 2011. Pursuant to the joint venture
agreement the private placement was priced at 125% of the volume weighted average price of the seven day period
following execution of the agreement.

About Kalimantan Gold

Kalimantan Gold Corporation Limited is a junior exploration company listed on both the TSX Venture Exchange in
Canada and on AIM in London. The Company has two exploration projects in Kalimantan: the Jelai epithermal gold
project in East Kalimantan (which has been optioned to Tigers Realm Minerals) and the KSK Contract of Work in
Central Kalimantan with multiple porphyry copper and gold prospects (which has been optioned to Freeport). In
addition, the Company continues as agent for the shareholders of PT Indobara Pratama ("IBP") who are seeking to
sell IBP's coal concession in exchange for a share of the proceeds and active negotiations with a qualified
purchaser are in process.

RFC Corporate Finance Ltd acts as KLG's Nominated Adviser for the purposes of its AIM listing, contact Stuart
Laing, ph: +618 9480 2506 or email: stuartl@rfc.com.au.

This news release contains forward-looking statements that are based on the Company's current expectations and
estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or
statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors that could cause actual events or results to differ
materially from estimated or anticipated events or results implied or expressed in such forward-looking
statements. Such factors include, among others: the actual results of current exploration activities;
conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible
variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry;
delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other
factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-
looking statement speaks only as of the date on which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to update any forward-looking statement,
whether as a result of new information, future events or results or otherwise. Forward-looking statements are
not guarantees of future performance and accordingly undue reliance should not be put on such statements due to
the inherent uncertainty therein.


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FOR FURTHER INFORMATION PLEASE CONTACT:

Kalimantan Gold Corporation Limited
Faldi Ismail
Deputy Chairman and CEO
Mobile: +61 (0) 423 206 324
faldi.ismail@kalimantan.com

OR

Gerald Cheyne
Director Corporate Development
+44 (0) 2077311806
Mobile: +44 (0) 7717473168
gerald.cheyne@kalimantan.com
www.kalimantan.com

OR

Alexander David Securities Limited
Bill Sharp/David Scott
+44 (0) 20 7448 9820

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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