FOR: KALIMANTAN GOLD CORPORATION LIMITED

TSX VENTURE, AIM SYMBOL: KLG

September 1, 2008

Kalimantan's Half-Year 2008 Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 1, 2008) - Attached are the Consolidated Balance Sheets,
Consolidated Statements of Operations and Deficit, and Consolidated Statements of Cash Flows (unaudited -
prepared by management) of Kalimantan Gold Corporation Limited (TSX VENTURE:KLG)(AIM:KLG) (the "Company") for
the half-year ended June 30, 2008. The Half-Year Report is available for viewing on www.sedar.com or
www.kalimantan.com.

RFC Corporate Finance Ltd. acts as KLG's Nominated Adviser for the purposes of its AIM listing, contact Stuart
Laing, ph: +618 9480 2506 or email: stuartl@rfc.com.au.

KALIMANTAN GOLD CORPORATION LIMITED
See Nature of Operations - Note 1
CONSOLIDATED INTERIM BALANCE SHEETS
(a development stage company)
(In United States Dollars)

As at                                   June 30, 2008    December 31, 2007
--------------------------------------------------------------------------
                                           (unaudited)

ASSETS
Current assets
 Cash and cash equivalents                $ 1,370,099          $   872,739
 Prepaid items and advances                   147,185              101,562
                                          -----------          -----------
                                            1,517,284              974,301
Security deposit - mineral
 property (note 4)                             24,517               24,517
Deferred mineral property
 acquisition (note 4)                         101,751               95,835
Equipment (note 5)                            148,834              137,793
                                          -----------          -----------
                                          $ 1,792,386          $ 1,232,446
                                          -----------          -----------
                                          -----------          -----------

LIABILITIES

Current liabilities
 Accounts payable and
  accrued liabilities                     $   164,167          $   188,504
                                          -----------          -----------

Provision for employee service
 entitlements                                  32,132               41,276
                                          -----------          -----------
                                              196,299              229,780
                                          -----------          -----------

SHAREHOLDERS' EQUITY
Share capital (note 6)                        720,044              606,716
Contributed surplus (note 6)               17,777,102           16,042,841
Deficit                                   (16,901,059)         (15,646,891)
                                          -----------          -----------
                                            1,596,087            1,002,666
                                          -----------          -----------
                                          $ 1,792,386          $ 1,232,446
                                          -----------          -----------
                                          -----------          -----------

Nature of operations (note 1)
Commitments (note 8)
Subsequent events (note 10)

The accompanying notes form an integral part of these interim consolidated
financial statements.


KALIMANTAN GOLD CORPORATION LIMITED
See Nature of Operations - Note 1
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS, COMPREHENSIVE LOSS AND
DEFICIT
(a development stage company)
(In United States Dollars)

                            three months ended            six months ended
--------------------------------------------------------------------------
                         June 30,      June 30,      June 30,      June 30,
                            2008          2007          2008          2007
--------------------------------------------------------------------------
                      (unaudited)   (unaudited)   (unaudited)   (unaudited)

EXPENSES
General and
 administrative
 Accounting and
  audit             $        915  $      5,466  $        915  $      5,466
 Amortization                295           295           589           589
 Consultants
  (note 7)               149,867        71,444       272,128       136,374
 Directors fees
  (note 7)                 6,000         6,000        12,000        12,000
 Investor relations       31,754         4,950        46,909        37,928
 Legal                     5,483         2,810        12,066        14,177
 Office and
  administrative
  services                 6,118         2,293        10,276         4,468
 Stock
  compensation
  expense                    874       350,968         7,292       350,968
 Telephone and
  facsimile                1,419         1,495         2,879         3,161
 Transfer agent,
  filing and
  exchange fees           38,446        18,304        72,410        28,066
 Travel and
  accommodation           23,145        11,797        29,668        43,923
                    ------------  ------------  ------------  ------------
                         264,316       475,822       467,132       637,120

Current
 exploration
 (note 4)                439,958       130,972       754,793       252,931

Foreign exchange
 gain                    (11,104)       (7,511)       38,554       (85,250)

Interest income           (2,307)      (73,616)       (6,311)      (18,390)
                    ------------  ------------  ------------  ------------

Loss and
 comprehensive
 loss                   (690,863)     (525,667)   (1,254,168)     (786,411)

Deficit
 - beginning of
 period              (16,210,196)  (14,380,479)  (15,646,891)  (14,119,735)
                    ------------  ------------  ------------  ------------

Deficit
 - end of period    $(16,901,059) $(14,906,146) $(16,901,059) $(14,906,146)
                    ------------  ------------  ------------  ------------
                    ------------  ------------  ------------  ------------

Loss per share
 - basic and
 diluted            $      (0.01) $      (0.01) $      (0.02) $      (0.01)
                    ------------  ------------  ------------  ------------
                    ------------  ------------  ------------  ------------

Weighted average
 number of
 shares
 outstanding          66,010,062    58,350,784    64,946,509    58,294,430
                    ------------  ------------  ------------  ------------
                    ------------  ------------  ------------  ------------


The accompanying notes form an integral part of these interim consolidated
financial statements.


KALIMANTAN GOLD CORPORATION LIMITED
See Nature of Operations - Note 1
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(a development stage company)
(In United States Dollars)

                            three months ended            six months ended
--------------------------------------------------------------------------
                         June 30,      June 30,      June 30,      June 30,
                            2008          2007          2008          2007
--------------------------------------------------------------------------
                      (unaudited)   (unaudited)   (unaudited)   (unaudited)

Cash provided
 from (used for)

Operating
 activities
Loss for the period $   (690,863) $   (525,667) $ (1,254,168) $   (786,411)
Add charges to
 operations not
 involving a
 current payment
 of cash:
 Amortization             15,160         8,573        27,179        11,679
 Stock compensation
  expense                    874       350,968         7,292       350,968
 Unrealized foreign
  exchange loss
  (gain)                 (11,085)      (73,602)       38,574       (85,252)
Changes in
 non-working
 capital items:
 Prepaid items
  and advances            23,866        67,798       (45,623)      (27,756)

 Accounts payable
  and accrued
  liabilities             54,944       (88,231)      (24,337)     (235,891)
 Provision for
  employee service
  entitlements              (536)            -        (9,144)            -
                    ------------  ------------  ------------  ------------
                        (607,640)     (260,161)   (1,260,227)     (772,663)
                    ------------  ------------  ------------  ------------

Investing activities
Deferred acquisition
 of mineral property      (4,314)            -        (5,916)            -
Security deposits              -       (10,000)            -       (10,000)
Equipment                (19,820)      (16,836)      (38,220)      (66,549)
                    ------------  ------------  ------------  ------------
                         (24,134)      (26,836)      (44,136)      (76,549)
                    ------------  ------------  ------------  ------------

Financing activities
Share issues           1,062,577             -     1,840,297             -
                    ------------  ------------  ------------  ------------
                       1,062,577             -     1,840,297             -
                    ------------  ------------  ------------  ------------

                    ------------  ------------  ------------  ------------
Unrealized
 foreign exchange
 loss (gain) on
 cash and cash
 equivalents              11,085        73,602       (38,574)       85,252
                    ------------  ------------  ------------  ------------

Net change in cash
 and cash equivalents    441,888      (213,395)      497,360      (763,960)

Cash and cash
 equivalents,
 beginning of
 period                  928,211     1,184,379       872,739     1,734,944
                    ------------  ------------  ------------  ------------

Cash and cash
 equivalents,
 end of period      $  1,370,099  $    970,984  $  1,370,099  $    970,984
                    ------------  ------------  ------------  ------------
                    ------------  ------------  ------------  ------------

The accompanying notes form an integral part of these interim consolidated
financial statements.

FOR FURTHER INFORMATION PLEASE CONTACT:

Kalimantan Gold Corporation Limited
Rahman Connelly
Deputy Chairman and CEO
+61 7 552 32298 or +61 418 116 955
Email: rconnelly@ozemail.com.au

OR

Kalimantan Gold Corporation Limited
Nick Cottam
Corporate Relations Manager
+44 (0) 1394 384115
Email: nick@nickcottam.com

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



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