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Kentor Gold Encouraged By Kyrgyz Republic Government Decision

Kentor Gold (ASX: KGL) has updated the market today after the Kyrgyz Government forms Inter-Departmental Commission to work with international environmental experts.

"We are delighted that Government has chosen to work together with international environmental experts in a constructive effort to resolve the outstanding issues delaying development of Andash," said Simon Milroy, managing director of Kentor.

"As we advised the market on the 4th of July, we have full confidence in the Russian environmental auditing company (EMAS) that has been selected for the task. Three EMAS
consultants are in country at the moment.

"Work in cooperation with the Commission will begin immediately. We anticipate that this Commission in itself will not be the final step in the process, but it is an important step forward."

Kentor's operations in the country include the high grade, very low cost Andash Gold Copper Project - which is development ready and awaiting site access and.

Kentor is targeting 2013 to commence production at 70,000 gold ounces and 7,400 tonnes copper annually for an initial six years. The project has high potential for expansion.

Commission background

On the 22nd of August, the Kyrgyz Minister for Economic and Antitrust Policy signed an order "On Establishing an Inter-Departmental Commission under the Ministry of Economic and Antimonopoly Policy with Participation of Representatives of Ministries, Departments and an International Environmental Auditing Company to Resolve the Issue of Expediency of Development of the Andash Copper-Gold Deposit Located in Kopuro Bazar Village of Talas District of the Talas Region".

On instructions from the Head of the Government Office, the Minister ordered that, for the purpose of objective examination of the expediency of development of Andash, the Commission should involve independent international experts to conduct an environmental audit, and after a site visit submit the information in the form of a report.

Responsibility for executing the order has been vested in a Deputy Minister.

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