Kalimantan Gold: Jelai update

(VANCOUVER, BC-08/17/11)- As announced on February 15, 2011, Kalimantan Gold Corporation Limited executed a definitive option agreement with Tigers Realm Minerals Pty Ltd. an Australian based, privately owned resource company. Pursuant to the Deed Tigers may earn up to a 70% interest in the company's Jelai Gold Project (East Kalimantan) by meeting certain project expenditure obligations and completing a bankable feasibility study.

The Deed remains conditional upon receipt of the necessary forestry permits being granted to enable the on ground exploration activities to be conducted. In recognition of delays in the receipt of these permits, Tigers and the Company agreed to extend the period in which this condition could be satisfied by a further three months until August, 16, 2011, as announced on June 23, 2011.

The period has now expired. However, the forestry permits are expected imminently and the Company and Tigers are currently in discussions regarding a further extension to the Deed. Field operations and mobilization of drill rigs will be commenced immediately after the forestry permits are received. (end of release)