Kalimantan Gold Corporation Limited

Kalimantan Gold Corporation Limited

November 11, 2008 02:00 ET

Kalimantan Gold Corporation Limited: Initial Resource Statement for the Mewet Vein at the Jelai Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 11, 2008) - Kalimantan Gold Corporation Limited (TSX VENTURE:KLG)(AIM:KLG) is pleased to announce the initial resource statement for only one of five main veins identified at the Company's 100%-owned Jelai gold project in East Kalimantan, Indonesia. The Mewet Vein resource block is based on 23 drill holes and is contained within a 250 metre section within a known vein structure of more than 2,000 metres in strike length with mineralisation beginning on surface down to 225 metres below surface.

The Indicated Resource, at a cutoff grade of 1.0 g/t gold is 256,000 tonnes @ 3.44 g/t gold and 3.2 g/t silver, contains an estimated 28,000 ounces of gold and 26,000 ounces of silver. The Inferred Resource, at the same cutoff grade is 690,000 tonnes @ 2.81 g/t gold and 3.7 g/t silver, contains an estimated 62,000 ounces gold and 82,000 ounces silver.

Rahman Connelly, CEO of Kalimantan Gold, stated, "The Mewet Vein resource model is an important milestone, as it starts to quantify our view that Jelai has potential for yielding a significant gold resource. The emphasis will now be towards growing the resource in quantity and quality. The geological model generated will greatly assist us in drill targeting in the Mewet Vein area, where extensions of the higher grade areas have not been closed off, particularly down plunge to the north."

Since mid-August, additional infill drilling in the Mewet Vein area has provided enough confidence in the data to complete this first resource model of the vein structure outlined. This includes data derived from the recent Kalimantan Gold drilling and the previous exploration conducted by Ivanhoe Mines Ltd.

To view the map accompanying this press release, please click on the following link: http://media3.marketwire.com/docs/klg1111.pdf

Technical Discussion

The Mewet Vein resource block area is contained within a 250 metre section of strike length within a known vein structure of more than 2,000 metres in strike length. The vein is a typical low sulphidation epithermal vein, striking generally north-south and dipping at 60 degrees to the west. The vein is hosted within a sequence of andesite volcanics, with argillic alteration and silicification defining the main mineralised zone. Higher grades of precious metal mineralisation are associated with colloform banded quartz veins within broader halos of mineralised hydrothermal breccia. The Mewet Vein is part of a larger suite of epithermal veins in the area, some of which are currently being drill tested by 4 diamond core drill rigs operating at the project. Other veins currently being evaluated include the Sembawang, Lipan and Nyabi Veins.

The resource statement has been compiled by PT GMT Indonesia and the geology was modelled for a single section of the Mewet Vein over a strike distance of 250 metres where drill spacing is between 25-50 metres apart both along strike and down dip. For modelling, the analytical data was composited with a cut-off of 1.0 g/t Au with 2 metres of internal dilution accepted. An upper cut of 20 g/t Au was applied to the data set prior to modelling. No upper cut for Ag was applied.

The model was based on a block size of 1x4x4 (east x north x dip) metres and an orientation of north-south and a dip of -60 degrees from the horizontal to mimic the trend of the Mewet Vein structure. The model was constrained by the upper and lower surfaces of the interpreted vein structure and by modelled topography, modified by alluvial cover in some areas. Sections were extended 25 metres past the data limits along strike and 20 metres down dip from the last drill hole data point. The data was modelled by ordinary kriging using a search ellipse plunging -80 degrees to 345, as indicated by variogram modelling. A major search range of 60 metres was applied, with anisotropy defined by 0.75/0.50 for the semi-major and minor axis. The resource categorisation considers the following limitations:

- Indicated Resource: within a maximum of 25 metres from an adjacent data point and containing at least 10 additional points of consideration for each block.

- Inferred Resource: outside of the limits above but within the constrained block model boundary.

Additional considerations, based on the exploration programme results, were also analysed to categorise the resources. It has been determined that additional survey control on the drill collar locations and topography will be necessary to categorise any future resources into a Measured Resource category and the weighting of the intervals based on the recovery from the drilling also precluded some areas from being classified as Measured Resources.

All drill hole analyses were conducted by PT Indoassay in Balikpapan, which is an internationally accredited laboratory, including the analytical data from previous exploration on the property.

All data, as disclosed in this press release, has been verified by Brett Dennis Gunter, the Company's Qualified Person for the Jelai Project. Mr Gunter, who acts as a technical consultant to the Company, is a geologist with over 10 years experience in epithermal gold systems and is a member of the AusIMM.

About Kalimantan Gold

Kalimantan Gold Corporation Limited is a junior exploration company listed on both the TSX Venture Exchange in Canada and on AIM. The Company is focused on gold, coal and copper prospects in Indonesia and has exploration rights in three areas: the Jelai epithermal gold prospect in East Kalimantan, five coal prospects, also in East Kalimantan and porphyry copper and gold prospects in Central Kalimantan.

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.

The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.

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