Kalimantan gold regains control of Jelai gold project

Source：Kalimantan Gold Corp. Release Date：2012-10-02 327

Metalworking

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.

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