Kalimantan Gold increases proposed private placement

TSX Venture Exchange-listed Kalimantan Gold Corporation Limited said it was increasing its non-brokered private placement financing announced on October 14, 2003 from C$600,000 to up to C$700,000 to meet the expected demand.

Subject to regulatory approval, the Company will issue up to 2,187,500 units at a price of C$0.32 per unit. Each unit will consist of one common share and one-half of one common share purchase warrant.

Each whole warrant will be exercisable for the purchase of one common share at a price of C$0.38 per share for a period of two years from the date of closing. The Company will pay a finder's fee of 6% of the proceeds in cash.

The proceeds of this placement will be used, together with funds on hand, to finance the Company's ongoing exploration programs on its Contract of Work in Central Kalimantan, Indonesia and for working capital. The Company intends to continue to expand its institutional shareholder base with this financing and to use some of the proceeds to increase its investor relations and marketing activities. (alex)