Release: Kalimantan Gold - Jelai Mewet data ground truthed

(VANCOUVER, May 31)- Kalimantan Gold Corporation Limited (KLG:TSX.V) mobilized its geological team to the 5,000 hectare Jelai Mewet project at the end of March to locate the positions of the Indochina Goldfields Limited (ICG) drill holes and assess the full extent of the Mewet gold vein system. The crew was successfully able to locate all of the 26 diamond drill holes and 52 trenches completed by ICG in the late 1990's. The Mewet gold vein system is one of eleven gold anomalous prospects identified within the concession area and is the only one that has undergone limited drilling.

The next step for the Company is to validate the results of the ICG work including the examination of previous drill holes and remapping and sampling selected older trenches. Further trenching, mapping, sampling (soil geochemistry) and ground geophysics (magnetics and resistivity surveys) may also be warranted prior to drilling.

The Company is preparing itself for an equity private placement to fund a first phase minimum 4,000 metre drill program to evaluate the extent of the gold mineralization and size of bonanza-grade ore-shoots in the Mewet vein system. The Company will be following up on ICG reported values of 63 g/t Au in the Sembawang vein and 87 g/t Au in the Mewet vein. ICG drilling completed on the northern part of the Mewet Vein has demonstrated persistently strong mineralization (5-8 g/t Au) over 2 to 6 metre vein width to about 175 metres depth.

Jelai Mewet is a lowland gold prospect located about 50 kilometres west of the major regional coastal town of Tarakan, in Northeast, Kalimantan. The prospect can be easily accessed by speedboat and 4WD vehicle within 3 hours from Tarakan. The vein system is a series of auriferous quartz-adularia- carbonate veins developed along north-trending shears and along north-easterly trending conjugate shears, which are sub-parallel to a local fault-bounded basin margin. These generally steeply dipping vein-structures crop out intermittently within about a 2 square kilometre area and have a combined strike length of over 5 kilometres. The veins are hosted in Tertiary andesitic volcanic and volcaniclastic rocks.

At least seven major veins and numerous vein splays were identified by ICG in the Mewet vein system. The main veins are Mewet, Nyabi-Adau, Sembawang, Lipan, Tigalima and Taman. These veins vary in length from about 250 metres to greater than 1,000 metres and have an average width of between 2 and 8 metres, although they may become considerably thicker on vein flexures and intersections. The veins show complex textural characteristics, including prominent banding and brecciation, which reflect multiple stages of silica, adularia and carbonate deposition and preservation at relatively high-levels within a classic epithermal gold environment.

Qualified Person

All data, as disclosed in this press release, have been verified by the Company's Qualified Person, Didik Prasetyo, Senior Project Geologist.

The Company

Kalimantan Gold Corporation Limited has a 75% interest in the KSK Contract of Work ("KSK CoW") located in Central Kalimantan, Indonesia. Baroi, one of 38 prospects identified within the KSK CoW, has been the main exploration focus of the Company. The Company is now making plans to drill Jelai Mewet an epithermal gold prospect in East Kalimantan, 100% owned by the Company.(end of release)