Kalimantan Gold Closes Private Placement-Jelai Drilling Underway

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. NEWSWIRES

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 10, 2012) - Kalimantan Gold Corporation Limited (the "Company") (TSX VENTURE:KLG) (AIM:KLG) confirms that it has closed a private placement and issued 6,000,000 common shares at a price of US$0.08 or £0.05 per share to raise US$480,000 (£300,000) under its private placement financing announced on April 23, 2012 and May 8, 2012. The common shares issued are restricted from trading in Canada through the TSX Venture Exchange until September 10, 2012.

The proceeds of the placement, combined with the funds on hand, provide the Company with sufficient working capital to fund operations for 2012 and beyond.

The Company is also pleased to announce that the drill program at its Jelai epithermal gold project in Kalimantan, Indonesia is now well underway. The program is funded by Tigers Realm pursuant to a February 16, 2011 option agreement.


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 Metals) 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.



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.



Contact Information

Kalimantan Gold Corporation Limited
Faldi Ismail
Deputy Chairman and CEO
+61 (0) 423 206 324
faldi.ismail@kalimantan.com

Kalimantan Gold Corporation Limited
Gerald Cheyne
Director Corporate Development
+44 (0) 20 7731 1806 or Mobile: +44 (0) 77 1747 3168
gerald.cheyne@kalimantan.com
www.kalimantan.com

Alexander David Securities Limited
Bill Sharp
+44 (0) 20 7448 9800

Alexander David Securities Limited
David Scott
+44 (0) 20 7448 9800

KLG's Nominated Adviser
RFC Group Limited
Stuart Laing
+61 8 9480 2506
stuartl@rfc.com.au