Press release: Kalimantan Gold Corporation Limited: Four large geophysical anomalies confirmed by induced polarization geophysical survey

Four large geophysical anomalies confirmed by Induced Polarization geophysical survey Kalimantan Gold Corporation Limited (KLG.U - CDNX), contracted PT. Geoservices Bandung to carry out an Induced Polarization (``IP'') geophysical survey over the greater gridded Beruang Kanan area of the Company's Contract of Work in March and April 2001. Previously, PT. Aneka Tambang, using less sensitive Phoenix equipment, surveyed a smaller portion of the grid, within the North Main Zone. A total of 60.55 line kilometers were surveyed on 19 lines, spaced 200 meters apart, using a 150-meter dipole spread. One line, 10350X, was also surveyed using a 300 meter dipole spread, in an attempt to have a ``deep look''.

Changeability and resistivity data was collected from N1 to N6 levels, using a Zonge Multipurpose System. Two senior geophysicists from PT. Geoservices conducted the survey. Data was processed as pseudosections using Zonge, smooth modeling IP software (TS2dip), then contoured and presented on Geosoft 2D mapping software. Results are, presented on plans at 1:10,000 scale in Geoservices report No.2001/0503/Exp. dated May 2001.

Dr. Peter Elliot, an exploration geophysicist with extensive porphyry experience throughout Asia, evaluated the quality of the data and made a preliminary interpretation.

Results have successfully defined and confirmed several targets, which correlate with soil geochemistry, geology and previous drill hole data, within the 25 square kilometers survey area. Results suggest the occurrence of four large geophysical anomalies, which are probably mineral bearing (high chargeability) porphyry bodies. These possible intrusions occur at depths of between 200 to 300 meters. Near surface disseminations and vein hosted sulphide targets and intermediate feeder structural zones have also been identified. Only a small portion 800 by 200 meters of these target areas has been tested by the previous drill holes BK-1 through BK-10.

The first and largest of these deep porphyry targets, located within the West Zone, is roughly crescent shaped and approximately 1300 meters long and up to 700 meters wide. This inferred mineralized porphyry underlies a highly siliceous dacite porphyry dome.

A second elongated geophysical anomaly is located within the North Main Zone. This location is just east of the original ten drill holes and is believed to be responsible, for the mineralization intercepted in those holes. This body is approximately 1500 meters long and up to 400 meters wide.

A third inferred mineralized porphyry intrusion occurs in the Main South Zone, where high grade copper (9%) and gold (1.54 parts per million (``ppm'')) mineralization has been recovered from surface rock samples. This oval shaped body is 700 meters long and up to 550 meters wide.ഊ* The fourth geophysical anomaly, located in the Far West Zone, is roughly kidney-shaped and approximately 1600 meters long and between 400 and 800 meters wide. This inferred porphyry, correlates well with existing copper-gold and molybdenum soil and rock geochemistry.

Interpretation of IP data also suggests, the possible occurrence of a sub-surface mineralized mantos or replacement body, in the South Polymetallic Zone. This body is roughly cigar-shaped and approximately 900 meters long by 250 meters wide. Surface samples from this area have returned values up to 26% lead, 35% zinc, 3% copper, 3440 ppm silver and 1 ppm gold.

The drilling program, presently in progress and nearing completion, is designed to test some of these locations within the Main North Zone, the Central Zone including the South Polymetallic Zone, the Near West Leach Zone and the margin of the West Zone anomaly.

NOTE: Location map available from the company at the number(s) listed below or on the CCN Newswire website at www.ccnnewswire.com

Contact: Kalimantan Gold Corporation Limited, Doris Meyer, (604) 516-0566, (604) 516-0568, Email: info@kalimantan.com (*)