Kalimantan Gold-Freeport JV Exploration to Commence

Kalimantan Gold Corporation Limited (TSX VENTURE:KLG)(AIM:KLG) - 

Highlights



--  Forestry permit issued
--  Exploration activities to commence immediately
--  Deep drilling program defined
--  Drill rig mobilization to start immediately



Kalimantan Gold Corporation Limited (the "Company") is pleased to advise that
the extension to the expired Forestry Permit for its PT Kalimantan Surya Kencana
sixth generation Contract of Work ("KSK CoW") copper porphyry property has been
issued and mobilisation of equipment can now commence immediately and drilling
will start as soon as possible thereafter. The KSK CoW is located in central
Kalimantan, Indonesia.


Freeport-McMoRan Joint Venture

As announced on April 19, 2011, the Company signed a joint venture agreement
with a wholly owned subsidiary of Freeport-McMoRan ("Freeport") in relation to
the KSK CoW copper project. Under the terms of the joint venture, Freeport may
earn up to a 75% interest in the project by sole funding the completion of a
feasibility study. The phase one Forestry Permit has been granted for an area
totaling 7,422 hectares of the KSK CoW and gives the rights to the holder to
carry out full mineral exploration activities within the permitted concession
area.


The company is pleased to have obtained this Forestry Permit, allowing it to
commence its long-delayed exploration program. Field crews will commence
mobilization and camp construction immediately.


This successful initial phase of the forestry permitting process will allow the
company to execute drill tests of key prospects at Beruang Tengah and Beruang
Kanan, resource definition drilling at Beruang Kanan as well as bring other
priority prospects to the drilling stage with additional important ground
follow-up work.


The company appreciates the patience and support of the local government and
community during the drawn-out Forestry Permitting process. In addition, the
company appreciates the efforts made by officials of the Forestry Ministry to
expedite this current permit, and looks forward to working with them to secure
permitting over the remaining prospective areas, including Tambang Huoi, one of
the three highest priority targets, of the KSK Contract of Work area, as per the
terms of the contract of Work.


Fieldwork Commences

The main focus of the first year minimum US$3 million exploration program will
be drill testing the deeper porphyry copper targets that have been identified by
the Company on the KSK CoW. Recent advanced inversion modeling by Freeport
identified numerous massive deep seated magnetic bodies below extensive surface
geochemical anomalies and existing drill holes where copper mineralization was
present. The three highest priority targets identified are the Beruang Tengah,
Beruang Kanan and Tambang Huoi prospects. 


Previous drilling results at Beruang Kanan have included intersections of:



--  167 meters at 0.59% copper from 4.5 meters; 
--  79 meters at 0.89% copper from 6.5 meters; and
--  102 meters at 0.62% copper from 3 meters. 



Further details on the inversion modeling and identified targets are contained
in technical reports on the Company's website at www.kalimantan.com. The Company
will be the operator during this initial phase under the direction of the
Freeport. The drill program may be increased dependent on early results. 


Multiple deep drilling targets have collectively been defined and prioritized at
five of the priority copper porphyry targets with the Freeport exploration team.



In addition, the Company will commence an extensive exploration drilling program
covering 34 holes at Beruang Kanan with two drill rigs to define a potential
resource at this prospect. The Company plans to conduct further exploration at
several other identified copper porphyry targets this year to make them drill
ready. 


"The issuance of this Forestry Permit is an important milestone that will enable
the project's substantial deep drilling program with its world class JV partner,
Freeport to rapidly get underway," stated Faldi Ismail, CEO of the Company. "One
of our key strengths is our ability to manage the complex regulatory process
related to our exploration projects. Receipt of the Forestry Permit is evidence
of the strength, dedication and depth of our Indonesian experience."


The Qualified Person responsible for the technical content and verification in
this press release is Dr. Peter Pollard, the Company's Qualified Person.


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 is optioned to Tigers Realm Minerals) and the KSK
Contract of Work in Central Kalimantan with multiple porphyry copper and gold
prospects (which is optioned to a wholly owned subsidiary of Freeport-McMoRan
Exploration Corporation). For further information please visit
www.kalimantan.com.


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.