PRESS RELEASE - Kalimantan Gold announces survey results

Kalimantan Gold Corporation Limited (KLG.U CDNX) is pleased to announce that the completion of a soil geochemical program resulted in the identification of new zones of copper mineralization.

From August to October 2000 a broad geochemical survey was carried out over the Beruang Kanan Prospect, covering an area about 5 square kilometers confirming it to be a more extensive copper porphyry target than previously reported.

The survey detailed the collection of 400 'C'- horizon soil samples on 100 meter centers from 16 east-west survey grid lines spaced 200 and 400 meters apart, in the west and southern portions of this prospect. The Beruang Kanan Prospect now measures about 6.5 kilometers in diameter and remains open in all directions.

Based on this recent work and past exploration, including drilling, the Beruang Kanan Prospect can now, as shown on the attached prospect map, be sub-divided into: (a) Main Zone, measuring 2.5 kilometers long and 1 kilometer wide; and which can be further sub-divided into the Main North, Main Central and Main South Zones, (b) West Zone including the West Leach Cap Zone, (c) South East or Low Zone, (d) North West Zone, (e) South West Zone.

Beruang Kanan Main Zone

Mineralization within the Beruang Kanan Main Zone is influenced by a combination of major NNW structures and tension faults trending NE. Copper mineralization on a macroscopic scale consists of chalcopyrite and chalcocite with rare bornite. The most pervasive mineralization is pyrite, which is a cupriferous pyrite that contains traces of gold.

Detailed geological mapping of the Beruang Kanan Main Zone and the West Leach Cap Zone as well as reconnaissance mapping of the recently identified West Zone is now in progress.

Whilst the primary lithologies at Beruang Kanan Main Zone comprise dacite porphyry and a suite of tuffaceous rocks, pervasive and varied hydrothermal alteration in combination with intense deformation often makes positive identification of these lithologies difficult.

Lead and zinc geochemistry forms a broad halo, about 5 kilometers in diameter around the Beruang Kanan Main Zone. This mineralization also occurs as massive lens in association with faulting. An example of this is the Northern Polymetallic Zone, which outcrops over 100 meters by 20 meters. Results of drilling at this target were discussed in the 1999 First Quarter Report.

At the Southern Polymetallic Zone, located within the Main Central Zone, float samples have returned grades of up to 3.12% copper, 26% lead, 45% zinc, 3,440 parts per million ("ppm") silver and 2.91 ppm gold. Recent work on outcrop exposure in creeks in this area has identified massive polymetallic mineralization over more than 200 metres long. This mineralization occurs in faults, breccias and at contacts between dacite porphyry and silicified sediments. Further study and sampling is underway to understand the style and frequency of this sort of mineralization.

West Leach Cap Zone

The West Leach Cap Zone which lies directly west of the Beruang Kanan Main Zone, at the highest elevations, forms a central negative or "donut" anomaly approximately 1,000 meters by 500 meters. It is now thought that this leached cap forms a barren blanket which earlier Induced Polarization ("IP") surveys indicated, drapes over a possible deeper westward extension of the copper mineralized Beruang Kanan Main Zone.

West, North West and South West Zones

The recently identified West and North West Zones are copper and base metal anomalies defined by soil samples greater than 200 ppm copper. Some grab channel samples from outcrops in both areas assayed greater than 1% copper and up to 7% copper. The North West Zone appears to be largely structurally controlled and mineralization is open to the northwest.

The South West Zone is a soil geochemical, airborne magnetic and potassic anomaly. Float and rock samples in dacitic porphyry and contact sediments have returned anomalous values greater than 1% copper and up to 3% copper. More work is warranted in all three of these zones.

Due to the early onset of monsoon rains the IP program planned over the greater Beruang Kanan Prospect has been delayed till March 2001.

The Company also intends to carry out preliminary metallurgical testing on the Beruang Kanan mineralized drill core and pit samples in the near future to obtain indicative treatment processes.

A diamond-drilling program is scheduled to commence in late January 2001. The objectives are to test for mineralization within the 2.5 kilometers strike length of the Beruang Kanan Main Zone. Previous drilling, reported in the third quarter report of 1998 positively tested 800 meters of this strike length. The West Leach Cap Zone IP target will also be drilled to test potential mineralization at depths below 100 meters. (*)

On Behalf of the Board of Directors: "Mansur Geiger", Vice President Exploration

For further information, please contact: Doris Meyer, Kalimantan Gold Corporation Limited, Phone: (604) 516-0566, Fax: (604) 516-0568 Email: info@kalimantan.com.

No regulatory authority has either approved or disapproved the information contained herein. (*)