Issue of Equity

29 Dec 2014 07:00

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Kalimantan Gold Plans Private Placement

Kalimantan Gold Corporation Limited ("KLG” or the "Company") is pleased to announce that it plans to undertake a brokered private placement to place up to 55,000,000 common shares at a price of £0.0127 or US$0.020 per share (CDN $0.023) for total gross proceeds of up to US$1,100,000 (CDN $1,265,000). The private placement is not subject to a minimum subscription amount by any individual investor.

The private placement is subject to compliance with applicable securities laws and to the receipt of regulatory approval. Insiders may participate in the private placement and the Company will pay broker fees in connection with the private placement in accordance with the policies of the TSX Venture Exchange. The private placement will not be conducted in North America and the shares placed will be settled through CREST and as such the TSX Venture Exchange has granted a discretionary waiver to its minimum pricing rules.

The Company is also pleased to provide an update to the announcement of 26 November, 2014 that it had signed a non-binding letter of intent (“LOI”) with Tigers Realm Copper Pty Ltd (“Tigers”) to purchase its interest in the Beutong copper-gold project, Sumatra, Indonesia.

The Company has today executed a Definitive Agreement with Tigers and Tigers Copper Singapore No.1 Pte Ltd (the “Agreement”) The Agreement sets out a number of conditions required to complete the transaction including but not limited to: KLG completing an equity placement of not less than US$1 million which amount has been reduced from the previously announced US$3 million minimum. This condition will be satisfied if the current placement, the subject of this announcement, is subscribed for not less than US$1 million. The receipt of applicable regulatory approvals. The Company has received conditional approval from the TSX Venture Exchange and is making its submissions for final approval to close the acquisition. The ultimate parent of Tigers being Tigers Realm Metals Pty Ltd (“TRM Parent”) receiving shareholder approval for the distribution of the Consideration Shares by it to the TRM Parent shareholders. This approval has been received.

Faldi Ismail, the current Deputy Chairman and CEO of KLG stated, “Excellent progress has been made since the signing of the LOI and we look forward to bringing together the combination of complementary projects and people upon which to continue to build a significant regional Asian focused copper-gold business”. The Company intends to use the proceeds from the private placement primarily to fund the preparation and commencement of the Company’s next phase of infill and expansion drilling at KLG’s Beruang Kanan prospect within the Company’s KSK Contract of Work in Kalimantan, on finalizing conversion of the Beutong Izin Usaha Pertambangan (“IUP”) from an exploration IUP to an exploitation IUP and for general working capital purposes.

A presentation outlining the transaction and the combined projects is available on the Company’s website.

ON BEHALF OF THE BOARD OF DIRECTORS

Faldi Ismail, Deputy Chairman and CEO

For further information please contact:

-Ends-

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

Gerald CheyneDirector Corporate DevelopmentTelephone: +44 (0) 2077311806Mobile: +44 (0) 7717473168Email: gerald.cheyne@kalimantan.com

VSA Capital LimitedAndrew Raca / Justin McKeeganTelephone: +44 20 3005 5004 / +44 20 3005 5009Email: araca@vsacapital.com

Kalimantan Gold's Nominated AdviserRFC Ambrian LimitedAndrew Thomson / Trinity McIntyreTelephone: +61 8 9480 2500Email: andrew.thomson@rfcambrian.com / trinity.mcintyre@rfcambrian.com

About Kalimantan Gold Corporation Limited

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.

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.

United States Advisory

The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), have been offered and sold outside the United States to eligible investors pursuant to Regulation S promulgated under the U.S. Securities Act, and may not be offered, sold, or resold in the United States or to, or for the account of or benefit of, a U.S. Person (as such term is defined in Regulation S under the United States Securities Act) unless the securities are registered under the U.S. Securities Act, or an exemption from the registration requirements of the U.S. Securities Act is available. Hedging transactions involving the securities must not be conducted unless in accordance with the U.S. Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in the state in the United States in which such offer, solicitation or sale would be unlawful.

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