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P T G M T I n d o n e s i a Jl. TB Simatupang Kav. 1S, 2nd Floor Cilandak Timur, Jakarta, 12560 Phone : +62 21 782 4677 / 8, Fax: +62 21 782 4679

COAL PROSPECT DATA SHEET Prepared for Kalimantan Gold Corporation Limited Prospect Name : PT Tengin Sejahtera

Country : Indonesia Province : East Kalimantan Latitude (WGS84) : S 00° 51' 00" Commodity (s) : Coal Longitude (WGS84) : E 116° 40' 59" Style : Sedimentary Company : PT Tengin Sejahtera Age : Tertiary Licence : KP Exploration Setting : Kutai Basin

Prospect Overview : The concession area covers 4,808 hectares and is located 25 kilometres along

strike from the producing PT Multi Harapan Utama PKP2B concession area, which produces approximately 2.5Mt/annum of 6,400 kcal/kg coal. The resources in Multi Harapan stand at approximately 120Mt. The Tengin Sejahtera concession can be reached via provincial sealed roads from Balikpapan, then by logging roads from the main highway into the concession area. Balikpapan can be reached by commercial airlines from Jakarta on several flights each day.

Prospect Geology : The geology of the concession area comprises Pulaubalang Formation sediments

and it is situated along strike from known areas of coal deposits and present production. Most of the sediments dip variably, depending on the position within the structures, of between 10-60°. The Pulaubalang Formation coal is considered good quality with a calorific value of between 6,000-6,500 kcal/kg. The concession area contains similar rock formations to that being explored and exploited in a number of other areas around the concession. The Pulaubalang Formation consists of alternating quartz sandstone, sandstone, claystone and greywacke with limestone and coal intercalations; coal lenses are up to 4 metres in thickness. Thin layers of andesite-basalt tuff also occur. The limestone contains large foraminifera. White dacite tuff can also occur as thin intercalations in the quartz sandstone. The thickness of this formation is interpreted to be up to 2,500 metres and is folded with dips between 25°-60° and a general northeast-southwest strike. This formation conformably overlies the Pamaluan Formation and is conformably overlain by the Balikpapan Formation. Microfossils indicate deposition during the Early to Middle Miocene in a shallow marine, sub-littoral, possibly pro-deltaic environment.

History : Little exploration has been carried out on the property and the due diligence

period should allow a significant mapping component. The formations outcropping within the concession area are all known to be coal-bearing, with a range of coal qualities, seam thicknesses and dips. The presence of the concession along strike from the Multi Harapan concession adds to the prospectivity of the area as the target formations within the concession area are the same as those currently being exploited in Multi Harapan.

Type Tot.

Moisture Inherent Moisture Ash Volatile

Matter Fixed

Carbon Total

Sulphur Calorific

Value Calorific

Value

As received

Air dried basis

Air dried basis

Air dried basis

Air dried basis

Air dried basis

Gross as received

Air dried basis

% % % % % % kcal/kg kcal/kg

Awaited

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P T G M T I n d o n e s i a Jl. TB Simatupang Kav. 1S, 2nd Floor Cilandak Timur, Jakarta, 12560 Phone : +62 21 782 4677 / 8, Fax: +62 21 782 4679

Direct Testing Yes/No Number / Metres

Diamond Drilling : ? Not known Open Hole Drilling : ? Not known Outcrop Samples : Y Analyses unknown Trenching : N Other : N

Mineral Inventory Total Resources : Nil Reserves : Nil Depleted : Nil

Additional Data Comments Geological Mapping : Preliminary mapping Structural Data : Structural data has been collected during initial mapping Petrological Data : Nil Remote Sensing : Not analysed to date but available public domain data Geophysics : Nil Interpretations : Provisional interpretations

Infrastructure and Development : The area around the Tengin Sejahtera concession is well established as a mining centre and a number of options could be considered for development, including hauling southwards to the Balikpapan Bay area, which is the best option from that location. River side sales could also be considered to start an early cash flow but if the concession contains significant resources of coal then a trans-shipment operation would return the greatest value. The Balikpapan Bay area is ideal for transhipment operations. A haul road and barge loader would be required or shared facilities may be considered. The target size for the lease area is +10Mt of high calorie coal and a production rate of 1.5Mt/annum. If these targets could be achieved, the cash flow at the present prices for high calorie coal would be attractive for an incoming investor. The primary exploration would be detailed mapping and drilling, including deeper stratigraphic drilling to determine the coal-bearing stratigraphy within the concession area.

Qualified Person All data, as disclosed in this data sheet, has been verified by Brett Dennis Gunter, the Company’s Qualified Person for the coal prospects and a principal of PT GMT. Mr Gunter, who acts as a technical consultant to the Company, is a geologist with over 18 years experience in exploration and mining and has more than 12 years experience in Indonesia in various commodities, including coal. He is a member of the AusIMM. The exploration “targets” referred to in this data sheet is a conceptual target only and does not constitute a Mineral Resource estimate that complies with the standards prescribed by the JORC Code or National Instrument 43-101. Further drilling and other exploration work would be required to formulate a Mineral Resource estimate compliant with such standards.

References :

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P T G M T I n d o n e s i a Jl. TB Simatupang Kav. 1S, 2nd Floor Cilandak Timur, Jakarta, 12560 Phone : +62 21 782 4677 / 8, Fax: +62 21 782 4679