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Kalimantan Gold Receives Commitments for 16,125,000 Common Shares from Investors

Kalimantan Gold Corporation Limited (TSX VENTURE:KLG)(AIM:KLG) confirms that it has received commitments from investors for 16,125,000 common shares at a price of C$0.08 or £0.05 per share to raise C$1,290,000 under its previously announced private placement financing.

The participating investors include clients of the Company's UK broker, Alexander David Securities Limited, along with other investors from Australia and Asia.

The placement shares will be fully paid and will rank pari passu in all respects with the existing common shares in the Company. Application has been made for the placement shares to be admitted to trading on AIM ("Admission") and to be listed on the TSX Venture Exchange. It is expected that Admission will become effective and that dealings in the placement shares will commence on 24 December 2010. Regulatory approval for the placement has also been received from the TSX Venture Exchange. The total number of common shares in issue following completion of the placement will be 162,907,156.

Rahman Connelly, the CEO of the Company commented: "We are delighted with the interest in this placement, as it allows us to further progress our projects in Kalimantan, Indonesia. With a planned drill program on the Jelai epithermal gold project funded by Tigers Realm, our new project joint venture partner, along with the expected drill testing of the significant copper porphyry targets on our KSK Contract of Work and renewed interest in the IBP coal project, 2011 will be an exciting year for Kalimantan Gold shareholders."

Source:

Kalimantan Gold Corporation Limited

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