Kalimantan Gold Corporation Limited

Kalimantan Gold Corporation Limited

May 11, 2009 02:00 ET

Kalimantan Gold Issues Shares for Debt

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 11, 2009) - Kalimantan Gold Corporation Limited (TSX VENTURE:KLG)(AIM:KLG) (the "Company") announced on April 16, 2009 that negotiations were underway with officers, directors, employees and other debtors to accept shares for debt in respect of liabilities accrued to March 31, 2009 for deferred salaries, fees and expenses. The Company is pleased to announce that it has issued 5,046,661 common shares at a price of C$0.05 pursuant to shares for debt agreements with 10 creditors to extinguish an aggregate of C$253,233 worth of debt, for which regulatory approval was received on April 28, 2009.

The common shares issued are restricted from trading through the TSX Venture Exchange until September 9, 2009.

The shares for debt transactions do not result in any new control persons.

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 is active on gold, coal and copper prospects in Indonesia and has exploration rights in three areas: the Jelai epithermal gold prospect in East Kalimantan, an option over the IBP coal prospect, also in East Kalimantan and a Contract of Work in Central Kalimantan with multiple porphyry copper and gold prospects.

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.

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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