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Kalimantan Gold Regains Control of Jelai Gold Project

VANCOUVER, British Columbia--(BUSINESS WIRE)-- Kalimantan Gold Corporation (“KLG”) announces that Tigers Realm Metals (“TRM”) has completed phase one exploration activities on KLG’s Jelai epithermal gold project located in East Kalimantan, Indonesia. TRM focused on drilling advanced stage greenfield targets in the northwest Mewet Prospect of the Jelai IUP license.

TRM completed 12 holes, for a total 3,318.9m. TRM’s objective was to test continuity of high grade at depth and in shoots along strike, to define an initial gold resource at the Mewet Prospect. A total of eight holes were completed at the Mewet prospect, two deep holes into north and south Sembawang prospect and two scout holes at central and south Nyabi Prospect.

TRM did not see the results it expected in this modest 6-month drill test and they have provided notice to withdraw from the Option Deed effective September 30, 2012 having spent $2,000,000.

Faldi Ismail, CEO remarked, while we enjoyed working with the TRM team I understand TRM's priorities and wish to withdraw from its Option Deed. However, now that the Jelai prospect reverts to being wholly owned by KLG, we will be reviewing the best way of taking the Jelai prospect forward once conclusions have been reached following the review of the drill results. We are currently in discussions with a number of parties that have expressed interest in the project”.

Results are now being analyzed by KLG and conclusions will be released as soon as they are available.

To view the graphic associated with this press release, please click on the following link:
http://www.usetdas.com/pr/kalimantan10022012graphic1.jpg
Figure 1: Jelai IUP, showing TRM drill hole locations

To view the graphic associated with this press release, please click on the following link:
http://www.usetdas.com/pr/kalimantan10022012graphic2.jpg
Figure 2: Jelai IUP, showing prospect locations

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: the Jelai epithermal gold project in East Kalimantan (which was optioned to Tigers Realm Metals Pty Ltd) and the KSK Contract of Work in Central Kalimantan with multiple porphyry copper and gold prospects. For further information please visit www.kalimantan.com

To view the graphic associated with this release, please click on the following link:
http://www.usetdas.com/pr/kalimantan10022012graphic3.jpg

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 uncertain.

Faldi Ismail
Deputy Chairman and CEO, Kalimantan Gold
Mobile: +61 (0) 423 206 324
Email: faldi.ismail@kalimantan.com
or
Gerald Cheyne
Corporate Development (UK)
Telephone: +44 (0) 2077311806
Mobile: +44 (0) 7717473168
Email: gerald.cheyne@kalimantan.com
or
VSA Capital Limited
Nick Redfern/ Peter Damouni
Telephone: +44 20 3005 5005/ +44 20 3005 5007
Email: pdamouni@vsacapital.com
or
KLG's Nominated Adviser
RFC Ambrian Limited
Stuart Laing
Telephone: +61 8 9480 2506
Email: stuart.laing@rfcambrian.com

Source: Kalimantan Gold Corporation