Kalimantan Gold to raise C$600,000

Toronto Stock exchange-listed junior explorer Kalimantan Gold Corporation Limited said it is proceeding with a non-brokered private placement financing of up to C$600,000 too finance the Company's ongoing exploration programs on its Contract of Work in Central Kalimantan and for working capital.

'The recent discovery of the Far Eastern Zone and the recognition of its characteristics is truly exciting for KLG,? said Rahman Connelly, President of the Company. 'The monies that we will be raising will help us expand our geological knowledge of the FEZ. The size of this zone could make it of great interest to any potential joint venture partner.'

Mid-September several of the Company's directors, accompanied by Terry Leach, the Company's consulting geologist, visited various zones of the Company's Baroi Prospect. As a result of that visit KLG presently believes that the Far Eastern Zone displays the greatest potential of hosting a large copper-silver-gold porphyry deposit. The next phase of exploration will be focused on delineating the FEZ.

Kalimantan gold is exploring for copper and gold. (alex)