Kalimantan Gold Corporation Limited announced that it has been granted a further extension of the forestry permit for its PT Kalimantan Surya Kencana sixth generation contract of work. The Forestry Borrow to Use extension now covers all the priority areas sought when the application was made in autumn 2012 including the Tumbang Huoi, Baroi and Mansur prospects, which are historically three of the most prospective exploration targets within the CoW. Fieldwork and mobilization of equipment will commence immediately on all of the newly permitted prospect areas. The company has received formal confirmation from the Ministry of Mines approving the KSK 2013 exploration and work program. The deep drilling program has been completed at Focus One and drill pads are now being prepared at the gold-rich Mamuring Prospect. The second deep rig is drilling hole BKD04-01 at South Beruang Kanan. Two shallow holes have been completed at Rinjen and a third hole is commencing. Shallow drilling to 300m is underway at Beruang Kanan on drill hole BK051-01. KLG has purchased a new drill rig which will be mobilized to the KSK CoW in May. The drill pad for the new rig at Beruang Tengah Bukit Dea zone to test further high-grade gold surface anomalies to 600 m has been completed. Two 600 m drill holes are also planned at the Beruang Low Zone copper gold porphyry target and locations have been selected. Surface mapping and sampling has recently been completed at the Volcano, Rinjen, Focus One, Mamuring, Ketambung, Low Zone, and Bukit Dea prospects. Surface mapping is underway at Beruang West Zone where high-grade copper samples were recovered in previous surveys. Long line (4 km) IP surveys are in progress over the Beruang Kanan, Low Zone and Beruang Tengah prospects. The permitting process for airborne gravity and high resolution magnetic geophysical surveys covering the entire CoW is ongoing and progress is being made. An in-house resource estimate has commenced for Beruang Kanan, covering all delineation drilling to date up to hole to BK49-01.

Kalimantan Gold Corporation Limited announced audited consolidated earnings results for the year ended December 31, 2012. For the year, the company reported profit and comprehensive profit for the year of $62,715 compared to loss and comprehensive loss for the year of $1,422,230 a year ago. Cash provided from operating activities was $1,602,041 compared to cash used in operating activities of $631,605 a year ago. Purchase of equipment was $166,763 compared to $30,176 a year ago.

Kalimantan Gold Corporation Limited announced the appointment of Mrs. Pudji Wahjuni Purbo as an independent non-executive director of the company. In addition Mrs. Purbo has been appointed to the audit committee of KLG. Mrs. Purbo was an associate at Makarim and Taira S. one of the premier law firms in Indonesia where she was a partner from 2002 until 2012. As a specialist in natural resource law in Indonesia, particularly energy, mining and oil & gas, Mrs. Purbo also has experience in project finance, merger, acquisitions, corporate and commercial law. She is a member of Masyarakat Ketenagalistrikan Indonesia (MKI, Indonesian Electrical Power Society) where she was Chairperson of Legal & Regulatory Advocacy. Francis Xavier De Souza leaves the Board having resigned as an independent non-executive director to KLG.