Kalimantan Gold Investor Presentation Rahman Connelly | London | October 2006
Disclaimer Kalimantan Gold The information contained within this presentation is not intended to be a comprehensive review of all matters and developments concerning Kalimantan Gold Corporation Limited (KLG) and KLG assumes no responsibility as to its completeness, accuracy or currency. This presentation may contain forward-looking statements which involve risks and uncertainties which may affect KLG's business and prospects and cause actual results to differ from the forward-looking statements. Specifically, charts, tables and text in this presentation may make use of estimates. Forward-looking statements contained in this presentation may be affected by the following factors, among others: – risks associated with mining exploration, development, construction and mining operations; – changes in the equity markets and market conditions for equity financing; – changes in the price of commodities; – changes in foreign currency exchange rates; – foreign investment risk; – government regulations including regulations relating to prices, taxes, royalties, land tenure, use, importing and exporting of minerals and environmental protection. The information in no way should be construed or interpreted as – or as a part of – an offering or solicitation of securities. No securities commission, stock exchange or other regulatory authority in Canada or any other country or jurisdiction has in any way passed upon this information and no representation or warranty is made by KLG to that effect . 2
Kalimantan - Overview Kalimantan Gold • Junior explorer focused on Kalimantan in Indonesia • Advanced copper & gold exploration prospects • Experienced management team Kalimantan • Active community development program - vital ahead of potential mining 3
Indonesia – Large Exploration Potential Kalimantan Gold Kalimantan Copper/Gold/Silver Base Metals Coal (Selected) 19 2 29 Other 37 8 7 38 27 20 25 32 9 33 51 5 39 12 1 36 50 Active Operators 40-45 55 13 24 28 30 6 46 include: 35 23 31 52 47 17 15 RioTinto 34 48 18 26 49 21 Freeport 3 11 Newmont 10 16 14 54 53 BHP Billiton, 4 22 Eramet Newcrest Antam Avocet = In Operation = Exploration / Development 4
Kalimantan Gold 5 Mansur Beruang Baroi The Copper Story
Indonesia: Copper Rich Kalimantan Gold • Successful history of copper production • World’s 3 rd largest copper exporter – Freeport’s Grasberg mine – Newmont’s Batu Hijau mine • Regional geological setting (plate margins and magmatic arcs) provide heat sources and structures favourable for copper and gold mineralisation • Yet Indonesia remains relatively underexplored 6
Copper Exploration - Central Kalimantan Kalimantan Gold • 75% ownership of KSK Contract of Work (CoW) 941 km 2 area with 38 prospects • • Priority targets: Beruang, Mansur & Baroi • Exploration to date: – Drilling – over 20 km – IP & mag surveys – over 190 km – Samples – over 9,000 – Aeromagnetics – 8000 km – Structural analysis 7
CoW– New Copper Porphyry Province Kalimantan Gold • Major new copper-porphyry province* • Porphyry deposits normally >500mt & contribute to more than 50% of annual world production (~15mt)** • Freeport has 80bn lbs Cu, 108moz Au - in-ground asset / resource $380bn • Batu Hijau 920 mt @ 0.55% Cu, 0.42g/t Au: in-ground asset / resource $50bn * Terry Leach paper to PDAC “ Porphyry Copper Gold Systems in Central Kalimantan” ** Resource World Magazine 8
Baroi Prospect Kalimantan Gold • Focus for past 3 years • 4 mineralized zones cover a massive 6x4km area • 8 characteristics of major porphyry deposits in the region* • Several priority targets defined for deeper drilling *Leach Report 2003 Hole BF-5 – 83 meters @ 2.6% copper; 0.6% lead; 1.9% zinc; 61 g/t silver and 0.22 g/t gold 9
Beruang Prospect Kalimantan Gold Beruang Kanan looking S/W S/E N/W South Low South Main Polymetallic Zone Zone North Zone Polymetallic West Zone Right structural setting intersecting major faults Drill hole BK2 results up to 167 meters @ 0.59% copper Two independent technical reviews Deep drill ready 10
Mansur Prospect Kalimantan Gold • Right structural setting intersecting major faults • Classic copper porphyry geology • Exploration work includes: – Airborne geophysics & satellite image interpretation – Geological mapping/sampling – Diamond drilling • Close to surface & drill ready 11
Development Strategy Kalimantan Gold • Heads of Agreement signed with Oxiana (ASX:OXR) – Initial funding period • US$2.5m over 18 months • Includes deep drilling at Baroi, Mansur & Beruang • Nil equity earn-in – Right to sole fund JV to earn equity • 40% equity at completion of a Pre-Feasibility Study: 30-42 months. • 66.67% equity at completion of a Bankable Feasibility Study: 48-60 months – Project Financing • Oxiana to use best endeavours to arrange Kalimantan’s share of project financing 12
Summary – Copper Prospects Kalimantan Gold • New porphyry province • All prospects potential to be company transforming • Dr Peter Pollard recently completed independent review of data to prioritize drill targets • Heads of Agreement signed for future joint development of the prospects “The KSK CoW contains the Baroi, Beruang and Mansur prospects.......mineralisation shows similarities with that which occurs in similar arc-related settings in Indonesia and the south-west Pacific, which are known to host economically significant copper deposits.” SRK Competent Persons Report 13
Kalimantan Gold 14 GOLD
Jelai Mewet – East Kalimantan Kalimantan Gold • Epithermal Gold Project 100% owned • Previously explored by Indochina Goldfields (Ivanhoe) • 11 gold prospects identified • Mewet Prospect confirmed high-grade gold mineralisation 15
Mewet Prospect Kalimantan Gold • 8 major veins identified • 26 holes drilled: 3,872 m – depths up to 200m • Gold bonanza grades to 63g/t & 87g/t gold • Less than 10% of 5km strike length drilled 16
Select Indochina Drill Hole Results Kalimantan Gold Hole Hole Fro From To To Metr Metres es Au g/t Ag g/t JM011 26.31 28.43 2.12 6.9 16 JM012 57.00 58.70 1.70 11.1 10 JM013 38.33 40.20 1.87 7.5 13 JM015 67.50 69.00 1.50 7.3 14 JM015 69.27 70.77 1.50 7.4 20 JM018 115.00 119.51 4.51 6.4 8 JM019 185.10 191.20 6.10 5.7 15 JM024 58.07 59.35 1.28 8.4 3 JM024 60.73 60.85 0.12 53.8 18 17
Jelai Mewet Drilling Program Kalimantan Gold Proposed Drill Holes • Validate Indochina results • Evaluate Mewet prospect with systematic drilling program • 4,000m drilling program • Regional exploration of 10 other prospects 18
Summary - Gold Prospects Kalimantan Gold • Advanced gold exploration properties in Indonesia • Formerly explored by Indochina (now Ivanhoe) • 6-month 4,000m drilling program to start January 2007 • Drilling will expand known mineralisation towards resource definition • 10 other similar prospects 19
Directors & Management Kalimantan Gold Murray Clapham, Chairman Rahman Connelly, Executive Chairman Peter Bojtos, Director Doris Meyer, CEO ---------- Mansur Geiger, VP Exploration Brett Gunter, Technical Advisor Jelai Mewet Bardolf Paul, Community Development Manager 20
Key Focus over next 6 months Kalimantan Gold • KSK – Copper – US$2.5m deep drilling program funded by Oxiana • Jelai – Gold – Substantial drilling program to prove up initial Indicated Resource to NI 43-101 standards • New Prospect Acquisition Program – Work through extensive data on hand to acquire other well worked / highly prospective areas in Kalimantan 21
Share Structure Kalimantan Gold • KLG listed TSX.V 1996 • Introduction to AIM in London – October 2006 Shareholders Kalimantan • Symbol: KLG/TSX.V Investment Corp. • Shares outstanding 57.1 million • Warrants 17.3 million • Options 3.6 million Management • Fully diluted 78.0 million • Retail & Institutions 69.5% Retail & • Significant shareholder 21% Institutional holders • Management 9.5% 22
Community Development Program Kalimantan Gold • Aim to foster good relationships & improve conditions locally • Programs include: – Building local capacity to self-manage village level development – Linking villages with local government services – Linking donor agency support to the needs of communities • Good to establish strong community links ahead of potential mining operations 23
Investment Opportunity Kalimantan Gold Listing on AIM • Recent private placement raised £1.3 million • Introduction to AIM in October • Will diversify shareholder base • Major porphyry copper opportunity – Joint Venture – highly valued by the market • Advanced gold exploration property – drilling towards resource definition • Early focus on community development demonstrates Kalimantan’s commitment 24
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