Mr. Faldi Ismail reports

KALIMANTAN GOLD PLANS PRIVATE PLACEMENT

Kalimantan Gold Corp. Ltd. plans to raise up to 300,000 pounds sterling from a non-brokered private placement financing from the sale of up to six million common shares at a price of five pence or eight U.S. cents per share. The private placement is subject to compliance with applicable securities laws and to receipt of regulatory approval. Insiders may participate in the private placement and the company may pay finder's fees up to TSX Venture Exchange allowable limits.

The company intends to use the proceeds from the private placement to finance continued programs in Indonesia, as well as general working capital purposes.