Asiamet Res Regulatory News (ARS)

30 Apr 2014 07:00

Kalimantan Gold Fiscal 2013 Results

Attached are the audited Consolidated Statements of Financial Position, Consolidated Statements of Comprehensive Profit (Loss), Consolidated Statements of Cash Flows, Consolidated Statements of Changes in Equity (the "Financial Statements") of Kalimantan Gold Corporation Limited (the "Company" or “KLG”) for the fiscal year ended December 31, 2013. The Financial Statements and Management Discussion & Analysis (“MD&A”) are available for viewing on www.sedar.com or www.kalimantan.com.

PT Kalimantan Surya Kencana (“KSK”) Contract of Work (“CoW”)

The holder of the KSK CoW is PT Kalimantan Surya Kencana. Kalimantan Gold holds 100% of the shares of Indokal Limited (“Indokal”). KSK is owned 75% by Indokal and 25% by PT Pancaran Cahaya Kahayan (“PCK”). Indokal owns 100% of PCK.

The KSK CoW was granted April 28, 1997 between the Republic of Indonesia and KSK as a 6th generation CoW. The terms of the KSK CoW defines several periods under which work done on the KSK CoW will fall. The KSK CoW is now confirmed as being in the 5th year of the Exploration Period until April 28, 2014. The Company has applied under Article 23 of the KSK CoW for a 6th year extension of the exploration period. This request has been accepted by the Ministry of Mines and the formal extension letter is in process. The period following Exploration is the Feasibility Study Period which runs for not less than two years, is extendable, and provides time to complete studies and identify the mining area.

A portion of the KSK CoW is within a Hutan Lindung (protected / reserved forest) area. The KSK CoW was granted prior to the enactment of the 1999 Government of Indonesia Law No. 41 on Forestry which prohibits open pit mining in Hutan Lindung areas. A subsequent Presidential Decree has confirmed that when the Company’s property meets the necessary criteria it may apply for a permit to exploit that portion of the properties within the KSK CoW that fall within the Hutan Lindung, either by underground mining or by applying to change the forestry permit. On March 12, 2012 (as amended April 8, 2013), KSK received a 2-year forestry permit granting permission to explore certain areas of the KSK COW. On December 2, 2013, the Company applied for a 2-year renewal of the forestry permit for a total area of 7,688ha of which 170.25ha falls within the Hutan Lindung. This 7,688ha area covers all of the main prospect areas within the KSK CoW. This renewal has been processed and is expected to be issued shortly.

Surya Kencana LLC (“SK LLC”) delivered their notice to withdraw from the KSK CoW pursuant to the KSK Agreement, after spending in excess of US$35 million in exploration and evaluation expenditures.

Jelai

With regard to the Jelai Izin Usaha Pertambangan (the “Jelai IUP”), the Company announced that the Indonesian Ministry of Forestry granted JCM an extension to its Borrow and Use Exploration Forestry Permit (IPPKH). The permit, which is renewable, extends the authorization for the Company to conduct exploration activities until December 16, 2015. It covers all the existing permitted areas, namely the Mewet and ten of the other 12 Jelai IUP prospects, comprising 4,675 hectares of the 5,000 hectare IUP.

The Company has been in discussions with a number of major mineral companies regarding a potential joint venture or similar arrangement in respect of Jelai IUP. These discussions are continuing and some site visits have already been undertaken.

Operations

The Company incurred a loss for the year ended December 31, 2013, of $325,805 (2012 – profit of $62,715). The Company earned management fees of $611,980 (2012 - $703,991) pursuant to the KSK Agreement. All of the Company’s exploration costs in the year, net of funding partner contributions and equipment rental payments, contributed a further $89,248 to the expenditure (2011 - $11,235 profit). Expenses were otherwise in line with the previous year.

-Ends-

For further information please contact:

Faldi IsmailDeputy Chairman and CEO, Kalimantan GoldMobile: +61 (0) 423 206 324Email: faldi.ismail@kalimantan.com

Gerald CheyneCorporate Development (UK)Telephone: +44 (0) 2077311806Mobile: +44 (0) 7717473168Email: gerald.cheyne@kalimantan.com

VSA Capital LimitedNick Redfern/ Peter DamouniTelephone: +44 20 3005 5005/ +44 20 3005 5007Email: pdamouni@vsacapital.com

KLG's Nominated AdviserRFC Ambrian LimitedStuart LaingTelephone: +61 8 9480 2506Email: stuart.laing@rfcambrian.com

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, Indonesia: the Jelai epithermal gold project in East Kalimantan and the KSK Contract of Work in Central Kalimantan with potential for multiple porphyry copper and gold prospects. For further information please visit www.kalimantan.com

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.

Copyright Business Wire 2014