KGC mobilizes to drill East Kalimantan gold prospect



    TSX Venture Exchange
    and AIM
    Symbol: "KLG"

    VANCOUVER, April 17 /CNW/ - Kalimantan Gold Corporation Limited (TSX V
and AIM: KLG) has been given the go ahead to drill its Jelai-Mewet gold
property in East Kalimantan, Indonesia. With the grant today of a forestry
permit, the company has all the permitting in place and is upgrading
facilities at the site to support the drilling operation. It believes that the
100%-owned, 5,000 hectare prospect has the potential to yield a major
epithermal gold-silver deposit.
    "The concession was previously explored by Indochina Goldfields (now
Ivanhoe Mines) who confirmed the presence of some very high-grade gold
mineralization. We are continuing where they left off by drilling a further
4,000 meters at the main Jelai-Mewet prospect area which will primarily test
the extent of mineralization and provide further structural information as a
precursor to the possible definition of an initial gold resource," commented
Kalimantan Gold CEO Rahman Connelly.
    In March 2006, Kalimantan mobilized its geological team to locate the
positions of the Indochina drill holes and assess the full extent of the Mewet
gold system. The crew was successfully able to locate all of the 26 diamond
drill holes and 52 trenches. The next step for the company is to validate the
results of the Indochina work, including the examination of previous drill
holes and remapping and sampling of selected older trenches.
    While the property contains 11 known gold veins only one, the Mewet vein
system, was explored by Indochina Goldfields, who achieved highly promising
results drilling just 10% of a five kilometer strike length. Previous drill
results included 1.7m @ 11.1 g/t gold, 4.5m @ 6.4 g/t gold and 6.1m @ 5.7 g/t
gold. The true widths of the mineralization by the prior operator were not
reported and are not known.
    KGC's proposed drill program will encompass diamond drilling around 32
holes to further test the Mewet mineral veins to at least 150m depth and over
a cumulative strike-length of at least two kilometers. The program will be
undertaken using a 300 meter rig and an 80 meter capacity scout rig.
    All data, as disclosed in this press release, have been verified by the
Company's Qualified Person for the Jelai-Mewet project, Brett Dennis Gunter.

    About Kalimantan Gold
    Kalimantan Gold Corporation Limited is a junior exploration company
listed on both the TSX Venture Exchange in Canada and on the AIM market of the
London Stock Exchange. The company is focused on copper and gold in Indonesia
and has exploration rights in two areas: the Jelai-Mewet epithermal gold
prospects in East Kalimantan and the copper-gold porphyry prospects in Central
Kalimantan.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or the accuracy of this release.





For further information:

For further information: please visit www.kalimantan.com or contact:
Rahman Connelly, Deputy Chairman and CEO, Kalimantan Gold, Telephone: +61 7
552 32298, +61 418 116 955, Email: rconnelly@ozemail.com.au; Gerald Cheyne,
Keith, Bayley, Rodgers & Co Limited, Telephone: +44 (0)20 78712274, Email:
gerald.cheyne@wcwb.co.uk; Nick Cottam Associates (UK public relations),
Telephone +44 (0) 7834 978139

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KALIMANTAN GOLD CORPORATION

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