Kalimantan Gold Plans Private Placement

VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 05/16/08 -- Kalimantan Gold Corporation Limited (TSX VENTURE: KLG)(AIM: KLG) (the "Company") plans to raise a minimum of $400,000 and up to $1,000,000 from a non-brokered private placement financing from the sale of up to 10,000,000 common shares at a price of $0.10 per share. The private placement is subject to compliance with applicable securities laws and to receipt of regulatory approval.

The Company intends to use the proceeds from the private placement to fund its ongoing gold and coal exploration programs in Indonesia, as well as 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, copper and coal prospects in Indonesia and has exploration rights in three areas: the Jelai epithermal gold prospect in East Kalimantan, five coal prospects in Kalimantan and porphyry copper and gold prospects in Central Kalimantan.

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

2008-05-16 17:28:55 0364368 MARKETWIRE