KLG

Kalimantan Gold Corporation Limited (TSX VENTURE:KLG)(AIM:KLG) (the "Company")
is pleased to announce it has entered into a joint venture agreement (the
"Agreement") with a wholly owned subsidiary of Freeport-McMoRan Exploration
Corporation ("Freeport") in relation to the Company's KSK Contract of Work
copper project (the "KSK CoW") in Kalimantan, Indonesia. 


Rahman Connelly, Deputy Chairman and CEO of the Company said, "Freeport-McMoRan
Copper and Gold Inc., as the world's second largest copper producer with
extensive Indonesian experience is an exceptional and ideal partner to rapidly
advance the KSK Copper Project and create value for all stakeholders." 


The Agreement formalizes the terms of the non-binding term sheet announced on
December 13, 2010 with at that time an unidentified major copper mining company.
Pursuant to the Agreement Freeport can earn a 51% joint venture interest in the
KSK CoW by expending a minimum of US$7 million on a substantial exploration
program over three years and then a further 24% (total 75%) by sole funding the
completion of a feasibility study with best efforts to complete it within ten
years. Subsequently, if a decision to mine is made, Freeport must use
commercially reasonable efforts to arrange non-recourse project financing on
reasonable terms and conditions for the costs of development on terms mutually
agreeable to each of the participants. Upon a decision to mine, if a participant
declines to fund its share, then that party will assign all of its rights and
interests in the KSK CoW to the other participant in consideration of a 1% NSR
royalty.


The first phase US$7 million expenditure must include an expenditure of not less
than US$3 million in the first year of which US$0.5 million must be spent on (i)
delineation drilling at Beruang Kanan and (ii) drill testing of each of the deep
Beruang Tengah, Beruang Kanan and Tambang Huoi prospects (i.e. a minimum of one
drill hole on each such prospect). Preparations to mobilise a drilling team to
commence testing the major porphyry copper targets the Company has identified on
the KSK CoW are well advanced. 


Subject to the approval of the TSX Venture Exchange Freeport will subscribe to a
C$350,000 private placement in the Company priced in the context of the market
on April 28, 2011, being 7 business days following the date of signing the
Agreement.


As previously described, the main focus of the exploration program will be drill
testing the deeper porphyry copper targets that have been identified on the KSK
CoW. Recent advanced inversion modeling identified numerous massive deep seated
magnetic bodies below extensive surface geochemical anomalies and existing drill
holes where copper mineralization was present. The three highest priority
targets identified are the Beruang Tengah, Beruang Kanan and Tambang Huoi
prospects, which are all expected to be drill tested by at least one hole to a
depth of up to 1,500 meters in the first year of the program. Previous drilling
results at Beruang Kanan have included intersections of 167 meters at 0.59%
copper from 4.5 meters, 79 meters at 0.89% copper from 6.5 meters and 102 meters
at 0.62% copper from 3 meters. Further details on the inversion modeling and
identified targets are contained in technical reports on the Company's website
at www.kalimantan.com. The Company will be the operator during this initial
phase under the direction of the Freeport. 


About Kalimantan Gold

Kalimantan Gold Corporation Limited is a junior exploration company listed on
both the TSX Venture Exchange in Canada and on AIM in London. The Company has
two exploration projects in Kalimantan: the Jelai epithermal gold project in
East Kalimantan (which has recently been optioned to Tigers Realm Minerals) and
a Contract of Work in Central Kalimantan with multiple porphyry copper and gold
prospects. In addition, the Company continues as agent for the shareholders of
PT Indobara Pratama ("IBP") who are seeking to sell IBP's coal concession in
exchange for a share of the proceeds and active negotiations with a qualified
purchaser are in process.


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.


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.

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