Kalimantan Gold: Jelai update

(VANCOUVER, BC-08/23/11)--Kalimantan Gold Corporation Limited executed a definitive option agreement (the "Deed") with Tigers Realm Minerals Pty Ltd. ("Tigers") an Australian based, privately owned resource company on February 16, 2011. Pursuant to the Deed Tigers may earn up to a 70% interest in the Company's Jelai Gold project by meeting certain project expenditure obligations and completing a bankable feasibility study.

The Deed remains conditional upon receipt of the necessary forestry permits being granted to enable the on ground exploration activities to be conducted. In recognition of delays in the receipt of these permits, Tigers and the Company have now agreed to a second extension of time in which this condition could be satisfied by a further three months until November 16, 2011. The terms of the Deed require Tigers to spend a minimum of US$2 million on exploration in the first 18 months (the "First Period") after the forestry permit is issued. Whilst this expenditure commitment remains the same for Tigers to earn an interest in the project the parties have agreed to amend the required expenditure before it may withdraw during the First Period from US$2 million to US$1.5 million.

The forestry permits are expected to be granted in the near term and field operations and mobilization of drill rigs will be commenced as soon as possible after the forestry permits are received. (end of release)