Kolar Gold Limited - Issue of Shares to Director

09 December 2011

9 December 2011

Kolar Gold Limited

("Kolar Gold" or the "Company")

Issue of Shares to Director

Kolar Gold Limited announces that it has issued 44,777 ordinary shares of 7p each in the Company ("Ordinary Shares") to Mr. Steve Coe in satisfaction of half the salary owed to Mr. Coe in respect of his role as a non-executive Director of the Company for the period from 8 February 2011, when Mr. Coe joined the Board of Kolar Gold and 30 October 2011. The number of shares issued was determined by reference to either the placing price (for months before July 2011) or the volume weighted average price of the Company"s shares at the end of each month.

The 44,777 Ordinary Shares shall rank pari passu with the Company"s existing issued ordinary shares of no par value ("Ordinary Shares") and dealings are expected to commence on 14 December 2011.

Mr. Coe now holds 44,777 Ordinary Shares in the Company, representing approximately 0.04 per cent. of the issued share capital of the Company.

Following Admission, the Company"s enlarged issued share capital will comprise 100,151,796 Ordinary Shares with one voting right per share. There are no shares held in treasury. The total number of voting rights in the Company is therefore 100,151,796.

This figure of 100,151,796 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA"s Disclosure and Transparency Rules.

For further information please contact:

Kolar Gold Limited


Nick Spencer

+617 3846 0211

Cenkos Securities plc


Nomad and Joint Broker


Beth McKiernan/Ken Fleming

020 7397 8900/0131 220 6939

Ocean Equities Limited


Joint Broker


Will Slack

020 7786 4370

Tavistock Communications


Ed Portman/Lydia Eades

020 7920 3150


About Kolar Gold Limited

Kolar Gold Limited is an Indian gold exploration and development company, listed on the AIM market (KGLD), that has an experienced international board and strong local partners. KGL has rights to explore and develop one prospecting licence and 13 further licence applications in the Kolar Gold Belt, an 80 kilometre long Archaean Greenstone Belt, in Southern India. The Kolar Gold Belt is one of the most prospective underdeveloped Archaean Greenstone Belts in the world and is regarded by Mr Andrew J Vigar of Mining Associates Limited, the Competent Person, as comparable to the Archaean Greenstone Belts of South Africa, Canada and Western Australia which have similar geology, structure and style of mineralisation. This project area includes 32 known mineralised prospects and covers 568 square kilometres in the southern states of Andhra Pradesh, Karnataka and Tamil Nadu. KGL commenced exploration on the first Prospecting Licence in South Kolar in February 2011. KGL is also jointly pursuing, with the mine employee unions, the acquisition and revival of the neighbouring historic Kolar Gold Fields which has produced 25 million ounces of gold at 15.9 grams per tonne over 120 years until closure in 2001.