BK Copper Project – First Assay Results Confirm Potential

VANCOUVER, BC / ACCESSWIRE / May 13, 2015 / Kalimantan Gold Corporation Limited (“KLG”) is pleased to announce assay results from the first four holes drilled at its flagship Beruang Kanan copper project in 2015. As previously reported the first four holes drilled on section lines BKM32450 and BKM31750 intersected visual near surface copper mineralization predominately hosted in stock work fractures and quartz veins, and as open space fill.

RESULTS

Final assays were received for a total of 323.1 meters in the four drill holes reported to date. A drill hole location plan and a table of full assay results are provided in Figure 1 and Table 1 respectively.

Hole BKM32450-01 (92.4m end of hole (“EOH”) drilled as an infill hole on section line BKM32450 intersected strong near surface copper mineralization in brecciated and silicified volcaniclastic rocks. Three wide intervals of mineralization were reported as follows:

14 meters at 2.02% Cu (from 4.7 meters depth)

1. Including 6.0 meters at 3.71% Cu (from 4.70 meters)

22 meters at 0.88% Cu (from 32.0 meters depth)

1. Including 5.0 meters at 1.10% Cu (from 35.0 meters)
2. Including 6.0 meters at 1.57% Cu (from 45.0 meters)

15 meters at 0.57% Cu (from 76.0 meters depth)

BKM32450-02 (70.6m EOH) also drilled as an infill hole on section line BKM32450 hit a post mineral dyke and failed to intersect the key target zone of mineralization. Three narrow mineralized intervals were intersected; including a small interval assaying 2m at 2.08% Cu (from 49.5 meters depth).

Hole BKM31750-01 (75.1m EOH) drilled on section line BKM31750 intersected a cumulative 23m interval (over 3 individual intersections) of highly elevated copper mineralization in centimeter to meter scale quartz veins. Better assays received from this interval include 9.0 meters at 0.73% Cu (from 19.0 meters depth) and 10.0 meters at 0.57% Cu (from 41.0 meters depth).

BKM31750-02 (85.0m EOH) also collared as an infill hole on section line BKM31750 intersected a broad zone of copper mineralization comprising covellite and chalcocite in centimeter scale quartz veins and zones of strong silicification. Copper mineralization is more pervasive than previous holes located nearby and extends beyond the current limits of the BKM deposit. Better results include:

54 meters at 1.10% Cu, (from 16.5 meters depth)

1. Including 16 meters at 1.67% Cu (from 17.5 meters)
2. Including 19 meters at 1.22% Cu (from 37.5 meters)

The drilling program planned for the Beruang Kanan Main deposit (BKM) in 2015 is designed to increase confidence and expand the deposit beyond the known resource. The first four holes have confirmed continuity of mineralization on each section line and drill hole BKM31750-02 indicates copper mineralization is potentially more pervasive in the southern part of the BKM deposit than previously recognized.

The potential for additional mineralization in the southern part of the BKM deposit is also supported by recent field mapping which identified strong veining and stockwork copper mineralization in sub-crop and outcrop over more than 400 meters to the west of drill hole BKM31750-02. Further drilling is planned to fully define the extent of mineralization in this area.

Resource in-fill and expansion drilling is continuing on both of the section lines reported above. At least seven holes are planned on line BKM32450 and ten holes on line BKM31750. Once these two sections are completed, drilling will move to section lines BKM31650 and BKM32350 located 100m to the south of current drilling. A list of drill hole details is provided in Table 2.

Tony Manini, Kalimantan Gold’s Chief Executive Officer commented:

“We are very pleased with the initial assay results from the 2015 drill program at the BK project. The continuity of copper mineralization observed to date has fully met our expectations and we have already identified an area to the south of current drilling with potential to further expand the BKM deposit. We have a comprehensive program of drilling and test work proposed for the BKM deposit and nearby prospects in 2015 and we look forward to progressively reporting further results as they become available”

Notes: Grade intercepts are calculated as a weighted average grade above 0.3% copper
Maximum internal waste of 3m
True widths are interpreted to be between 80-100% of the reported lengths, unless otherwise stated.

Figure 1: Location map showing section lines and drill collars. Please click on the following link to view this image.

http://fscwire.com/sites/default/files/NR/792/6813_image1.jpg

Table 2 : Drill Hole Details

Notes: Drill collars recorded using a handheld GPS device and reported in WGS84 UTM Zone 49S; Drill hole dip and azimuth are recorded approximately every 25 meters downhole

ON BEHALF OF THE BOARD OF DIRECTORS

Tony Manini, Deputy Chairman and CEO

For further information please contact:

Tony Manini

Deputy Chairman and CEO, Kalimantan Gold
Telephone: +61 3 8644 1300
Email: tony.manini@kalimantan.com

VSA Capital Limited

Andrew Raca / Justin McKeegan
Telephone: +44 20 3005 5004 / +44 20 3005 5009
Email: araca@vsacapital.com

Kalimantan Gold’s Nominated Adviser

RFC Ambrian Limited
Andrew Thomson / Oliver Morse
Telephone: +61 8 9480 2500
Email: andrew.thomson@rfcambrian.com / Oliver.Morse@rfcambrian.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking statements that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate,” “estimate,” “suggest,” “indicate” and other similar words or statements that certain events or conditions “may”or “will” occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

SOURCE: Kalimantan Gold Corporation Limited

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