Kalimantan Gold Completes C$1.1 Million Private Placement

Kalimantan Gold Corporation Limited (TSX VENTURE: KLG)(AIM: KLG) (the "Company") has raised $1.1 million from a non-brokered private placement financing involving the sale of 11,000,000 common shares at a price of $0.10 per share. The common shares issued are restricted from trading through the TSX Venture Exchange until October 14, 2008.

Significant new investors in KLG include Macquarie Bank Limited, a member of the Sydney-based Macquarie Group, which has purchased 3,000,000 common shares for $300,000. The bank, which is already active in Indonesia, has agreed to work with KLG to devise strategies to evaluate debt financing and hedging alternatives for any of its coal or gold projects. In return, Macquarie will be invited to offer its services to arrange and provide such debt financing or hedging to the Company.

The Company is also pleased to welcome Passport Capital, LLC as a shareholder following its purchase of 5,000,000 common shares for $500,000. The San Francisco-based global investment firm has a particular focus on mining and energy with an emphasis on emerging players in these markets.

With the remaining $300,000 of the placement taken up by several investors in the United Kingdom, CEO Rahman Connelly said he was very pleased both with the outcome of the placement and with the quality of new investors. "It's a very good result in a challenging market place and the placement was significantly oversubscribed. Energy and in particular coal projects are currently attracting considerable interest around the world and we look forward to working with investors such as Macquarie and Passport as we progress our portfolio of coal projects."

The money will be used to fund the Company's ongoing gold and coal exploration programs in Indonesia, as well as for general working capital purposes.

About Kalimantan Gold

Kalimantan Gold Corporation Limited is a junior exploration company listed on both the TSX Venture Exchange in Canada and on AIM. The Company is focused on gold, coal and copper prospects in Indonesia and has exploration rights in three areas: the Jelai epithermal gold prospect in East Kalimantan, five coal prospects, also in East Kalimantan and porphyry copper and gold prospects in Central Kalimantan. With the completion of this placement there are 74,955,117 common shares outstanding.

RFC Corporate Finance Ltd acts as KLG's Nominated Adviser for the purposes of its AIM listing, contact Stuart Laing, ph: +618 9480 2506 or email: stuartl@rfc.com.au .

The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.

Contacts: Kalimantan Gold Corporation Limited Rahman Connelly Deputy Chairman and CEO +61 7 552 32298 or +61 418 116 955 Email: rconnelly@ozemail.com.au Kalimantan Gold Corporation Limited Nick Cottam Corporate Relations Manager +44 (0) 1394 384115 Email: Nick@nickcottam.com Website: www.kalimantan.com