Kalimantan Gold drilling update at Baroi porphyry copper-gold target

VANCOUVER, BRITISH COLUMBIA - Sept. 29, 2004 ? Kalimantan Gold Corporation Limited is now drilling holes BF39 and BF40 to test the Baroi Southern Extension Zone porphyry copper-gold target.

The Baroi Southern Extension Zone exhibits the following key indicators to host a porphyry copper-gold deposit of significance:
- An aeromagnetic high anomaly surrounded by a broad zone of low magnetic response;
- A high chargeability anomaly increasing in this direction and coincident to the magnetic anomaly;
- Intense and wide spread phyllic alteration and irregular quartz stockwork veining containing sulphide mineralization;
- The copper-gold-silver mineralogy is more consistent with porphyry style mineralization than the high base metal occurrences found elsewhere at the prospect;
- It is located at the intersection of major northeast and northnorthwest regional structures;
- It is located directly at the contact of the granodiorite basement and andesite volcanics;
- It is in a similar setting to that of Newmont's Batu Hijau porphyry copper-gold deposit located in Sumbawa, Indonesia;
- All major veins in the greater Baroi prospect dip towards this area;
- Skarn mineralization has been identified on the western side of this zone; and
- A discrete circular feature is observed at this location.

The Company's exploration efforts are directed first towards intercepting porphyry mineralization at depth and subsequently to continue drilling to define the size of the deposit. (see www.kalimantan.com for details)

(see aeromagnetic map: http://www2.cdn-news.com/database/fax/2000/KLG0929a.pdf)
(see attached rock sample location map:http://www2.cdn-news.com/database/fax/2000/KLG0929b.pdf)

Editor's note: Baroi prospect is located in Central Kalimantan