Release: KGC mobilizes to drill East Kalimantan gold prospect

April 17, 2007 - Kalimantan Gold Corporation Limited (TSX V and AIM: KLG) has been given the go ahead to drill its Jelai-Mewet gold property in East Kalimantan, Indonesia. With the grant today of a forestry permit, the company has all the permitting in place and is upgrading facilities at the site to support the drilling operation. It believes that the 100%-owned, 5,000 hectare prospect has the potential to yield a major epithermal gold-silver deposit.

?The concession was previously explored by Indochina Goldfields (now Ivanhoe Mines) who confirmed the presence of some very high-grade gold mineralization. We are continuing where they left off by drilling a further 4,000 meters at the main Jelai-Mewet prospect area which will primarily test the extent of mineralization and provide further structural information as a precursor to the possible definition of an initial gold resource,? commented Kalimantan Gold CEO Rahman Connelly.

In March 2006, Kalimantan mobilized its geological team to locate the positions of the Indochina drill holes and assess the full extent of the Mewet gold system. The crew was successfully able to locate all of the 26 diamond drill holes and 52 trenches. The next step for the company is to validate the results of the Indochina work, including the examination of previous drill holes and remapping and sampling of selected older trenches.

While the property contains 11 known gold veins only one, the Mewet vein system, was explored by Indochina Goldfields, who achieved highly promising results drilling just 10% of a five kilometer strike length. Previous drill results included 1.7m @11.1 g/t gold, 4.5m @ 6.4 g/t gold and 6.1m @ 5.7 g/t gold. The true widths of the mineralization by the prior operator were not reported and are not known.

KGC?s proposed drill program will encompass diamond drilling around 32 holes to further test the Mewet mineral veins to at least 150m depth and over a cumulative strike-length of at least two kilometers. The program will be undertaken using a 300 meter rig and an 80 meter capacity scout rig.

All data, as disclosed in this press release, have been verified by the Company?s Qualified Person for the Jelai-Mewet project, Brett Dennis Gunter. (end of release)