FOR: KALIMANTAN GOLD CORPORATION LIMITED

TSX VENTURE, AIM SYMBOL: KLG

November 16, 2007

Kalimantan Gold Signs Heads of Agreement on Indonesian Coal Prospects

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 16, 2007) - Kalimantan Gold Corporation Limited (TSX
VENTURE:KLG)(AIM:KLG) is positioning itself to play a part in Indonesia's burgeoning coal market following the
signing of a Heads of Agreement with the Indonesian-based Jhoswa Group, designed to earn the company an
interest in a number of coal prospects situated in the Kutai provinces which are considered the epicentre of
coal mining in East Kalimantan. Over the last 10 years, Indonesia has become a world hot spot for coal with
production quadrupling to 200 m/t per annum and East Kalimantan province accounting for 90% of the country's
output.

As part of the Agreement, KGC is working closely with the specialist mining consultancy, PT GMT Indonesia,
which has been contracted to assess the prospect areas for exploration potential prior to their inclusion in a
formal joint venture agreement between KGC and the Jhoswa Group. KGC can elect to enter into the joint venture
once the assessment phase has been completed.

"The agreement is an important step for the company at a time when coal production in Indonesia is continuing
to rise, primarily because of increasing demand from China and India," commented CEO Rahman Connelly.
"Globally, coal is set to replace oil as the main source of energy and in countries such as China and India
around 80% of future power generation is projected to be coal based."

East Kalimantan is synonymous with the Indonesian coal industry with four of Kalimantan's six biggest coal
producers located there. Kalimantan coal resources have been estimated at 35Bt, most of which are suitable for
the thermal coal markets of Asia, including India and China. East Kalimantan has significant undeveloped coal
potential and there is a continuing opportunity for new players to enter the market.

Under the joint venture, KGC will establish a 100% owned subsidiary to carry out mining services (PT PMA)
within six months. PT PMA will sign a mining services agreement for each prospect and will be required to fund
100% of the costs of work programs for the prospects with the objective of establishing a commercially viable
coal resource in each case.

KGC would then be entitled to 80% of all proceeds of coal sales less agreed expenses and any other specified
items, with 5% of the projects being allocated as a royalty to PT GMT for its role as project manager and
technical advisor on the project.

About Kalimantan Gold

Kalimantan Gold Corporation Limited is a junior exploration company listed on both the TSX Venture Exchange in
Canada and on AIM in London. 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 KSK COW copper-gold porphyry
prospects in Central Kalimantan.

About GMT Indonesia

PT GMT Indonesia is a Jakarta based geological consulting group specialising in metallic and bulk commodity
exploration, consulting and project management. The principal aim of GMT is to assist investors to enter and
operate within the Indonesian mineral industry through the provision of sound advice and high standards of
exploration management and implementation suited to Indonesian conditions. GMT manages projects for, and
consults to, a large number of international investors in Indonesia in coal, gold, base metals, iron ore and
industrial minerals.


FOR FURTHER INFORMATION PLEASE CONTACT:

Kalimantan Gold Corporation Limited
Rahman Connelly
Deputy Chairman and CEO
+61 7 552 32298
+61 418 116 955 (FAX)

OR

Kalimantan Gold Corporation Limited
Nick Cottam
Corporate Relations Manager
+44 (0) 1394 384115
Website: www.kalimantan.com

OR

Keith, Bayley, Rodgers & Co Limited
Gerald Cheyne
+44 (0)20 78712274
Email: gerald.cheyne@wcwb.co.uk

OR

RFC Corporate Finance Ltd
(the Company's AIM Nominated Adviser)
Stuart Laing
+61 8 9480 2500

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



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