Kalimantan Gold Corporation Limited
TSX VENTURE : KLG
AIM : KLG

Kalimantan Gold Corporation Limited

October 17, 2008 02:00 ET

Kalimantan Gold Plans Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 17, 2008) - Kalimantan Gold Corporation Limited (TSX VENTURE:KLG)(AIM:KLG) plans to raise up to $1,000,000 from a non-brokered private placement financing from the sale of up to 10,000,000 common shares at a price of $0.10 per share. The private placement is subject to compliance with applicable securities laws and to receipt of regulatory approval.

Rahman Connelly, Deputy Chairman and CEO of Kalimantan Gold commented, "Notwithstanding current market conditions I have confidence in the fundamentals of the Company and I am subscribing for $100,000 in this private placement."

The Company intends to use the proceeds from the private placement to fund its ongoing gold and coal exploration programs in Indonesia, as well as general working capital purposes.

As announced on October 10, 2008, the Company recently secured ownership of 100% of the KSK COW porphyry copper and gold prospects located in Central Kalimantan, Indonesia. This valuable mineral asset is currently being reviewed by a major mining company as a step towards a potential joint venture.

As announced on September 29, 2008 the Company's aggressive step-out and infill drilling at its 100%-owned Jelai-Mewet epithermal gold prospect located in East Kalimantan confirms the strength and continuity of gold mineralization along the Mewet vein. The latest drill results have returned some exceptionally high grades and resource estimations are now underway with the objective of publishing an inferred resource by the end of the year.

As announced on September 11, 2008 the exploration on the East Kalimantan coal prospects, held under option, demonstrate good progress on a number of fronts. Field surveys of several near production areas are also underway with the objective of completing an option agreement in the near future.

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, copper and coal prospects in Indonesia and has exploration rights in three areas: the Jelai epithermal gold prospect in East Kalimantan, five coal prospects in 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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