Kalimantan Gold Signs Definitive Agreement with Freeport

Kalimantan Gold Corporation Limited (the "Company") is pleased to announce it has entered into a joint venture agreement (the "Agreement") with a wholly owned subsidiary of Freeport-McMoRan Exploration Corporation ("Freeport") in relation to the Company's KSK Contract of Work copper project (the "KSK CoW") in Kalimantan, Indonesia.



Kalimantan Gold Update On KSK Joint Venture Option

As announced on December 13, 2010, Kalimantan Gold Corporation Limited (the "Company") signed a non-binding term sheet (the "Term Sheet") with a major copper mining company (the "Major") in relation to its KSK Contract of Work copper project (the "KSK CoW") in Kalimantan, Indonesia. Pursuant to the Term Sheet the Major can earn a 51% joint venture interest in the KSK CoW by expending US$7 million on a substantial exploration program over three years and then a further 24% (total 75%) by sole funding the completion of a feasibility study. Further details on the terms are contained in the Company's previous announcement.



Kalimantan Gold Signs Definitive Agreement

Kalimantan Gold Corporation Limited (the "Company") is pleased to provide an update on the option to joint venture agreement announced on December 2, 2010.