Company Information for Kentor Gold

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Company Statement

Formed in 1998 as a specialist gold explorer, Kentor's initial focus was world class deposits in the Kyrgyz segment of the Tien Shan mountains, neighbouring Kazakhstan and China in Central Asia.

Since then Kentor has expanded and diversified its interests to include geothermal energy exploration in Kyrgyzstan and uranium exploration Australia.

Kentor's strategy is to build shareholder value by developing a diverse, world-class asset base using leading edge technology, with an emphasis on rapidly screening prospects and identifying those that may host significant ore bodies.

An important advantage Kentor has in Kyrgyzstan is its in-country management team - fluent in Russian and permanently based in the capital Bishkek. The management team has developed a strong relationship with the Kyrgyz Geophysical Expedition and government and has access to the complete Soviet geological database for Kyrgyzstan.

Services Provided

Geothermal Energy

Geothermal energy is a form of renewable energy derived from heat deep in the earth's crust. This heat is brought to the near-surface by thermal conduction and by intrusion into the earth's crust of molten magma originating from great depth.

Kentor Gold Limited has been granted prospecting licences for five areas in the Kyrgyz Republic. The licence areas are considered to be prospective for geothermal energy of the Hot Fractured Rock type analogous to the Cooper Basin.

The exploration target in each area is hot fractured granite with temperatures in excess of 250^oC.

Following successful exploration, the Company plans to generate emission-free electricity for export to China. The rapidly developing Xinjiang-Uyghur Autonomous Region of China lies adjacent to the Kyrgyz Republic.

Kentor's licences are the first for geothermal energy in the Kyrgyz Republic.

Clients & Geographic Spread

North and South Issykkul PLA

Lake Issykkul is a large (22,080 km2) body of water at an altitude of 1,600 metres in the Tien Shan Mountains which remains unfrozen throughout the severest winter. The depth of the lake is 668 metres.

Soviet and Russian research indicates that the energy to warm the lake enters through a broad system of transorogenic faults striking north-west across the middle of the lake, and that the energy enters from the sides rather than the bottom.

On the northern shore, basement granites lie under one or two kilometres of sedimentary material. Data collected in petroleum exploration wells and groundwater wells showed geothermal gradients ranging from zero near surface to a maximum of 88oC/km at deeper levels.

The area of the lake shore where the highest temperatures are coincident with significant sedimentary cover has been incorporated into the application for North Issykkul, 159 square kilometres around the resort town of Cholpon Ata.

On the southern shore, the sedimentary cover is thicker. Seismic surveys indicate a depth of cover of up to 5 kilometres. This section of the southern shore, centred on Barskaun, has been incorporated into the licence for South Issykkul, 248 square kilometres.

There has been no deep drilling in this area of the southern shore, but drilling for groundwater has produced some remarkable results. A 1974 Soviet report recorded geothermal gradients well in excess of 100 degrees per kilometre over significant areas.

Kyzylompul

The Kyzylompul area is characterised by syenite and granosyenite intrusions forming the Kyzylompul and Sandyk massifs. These massifs contain anomalous concentrations of radioactive material including uranium, thorium, and potassium. The high level of radioactivity should provide a strong source of energy to heat the granite.

Natural radioactivity levels recorded by Soviet investigators are up to 120 µR/hour (micro-Roentgen per hour). Normal natural background levels of radiation range from 0.17 to 11 µR/hour. The radioactive granites outcrop in some areas, where heat is dissipated. However, large areas are under significant depths of sedimentary cover.

The exploration target is radioactive granite where it lies under an insulating cover of about three kilometres and the temperature has thus built up to around 250oC.

The Kyzylompul licence covers 1,657 square kilometres.

Aksai

The Aksai Basin is underlain by young granites of the same age as the Kyzylompul massif, and there is sedimentary cover from 0 to 5km. High heat flows have been recorded by Soviet researchers, and Soviet reports record geothermal waters rising on a number of faults in the basin.

A substantial amount of geophysical work has been completed over the Aksai Basin, including gravity, IP and aeromagnetic surveys. Kentor now has access to the records of this work. An area of 3,455 square kilometres incorporating where heat anomalies have been recorded forms the licence area

Inylchek Area

While exploring for tin, Soviet geologists developed an adit which passed through a fault into hot granite 700 metres from the portal. Rock temperatures of over 70oC persisted until the adit was abandoned 1,000 metres further on. The implied geothermal gradient is 150oC /km. It is thought that these elevated temperatures are associated with the intersection of a north-south striking fault and the Inylchek fault.

Board of Directors and Key Management

Board of Directors:
John Barr AM MAICD	Non-Executive Chairman
Andrew Daley BSc (Hons.)(Mining)	Non-Executive Director
Simon Milroy	Managing Director
Hugh McKinnon BEng (Mining)	Executive Director (appointed 28 May 1998)
Key Management:
Julian Bartlett B.App.Sci (Hons.) and MSc (Econ.Geol.)	Exploration Manager
Bruce Paterson LLB	Company Secretary
Greg Burgess BA (Accounting)	Chief Financial Officer

Company Address Level 315 Queen Street Melbourne, Victoria, Australia, Australian Capital Territory, Australia 3000 Telephone: +61 3 9621 1533 Facsimile: +61 3 9621 1544 Email: info[at]kentorgold.com.au Website: http://www.kentorgold.com

Annual General Meeting 25 May 2006 - Melbourne

Year End 31 December

Major Shareholders

As at 26 February 2006:
Colonial First State	17%
Graham Tuckwell	6.64%
Hugh McKinnon	5.96%
Poolette Holdings Pty Ltd	5.48%
Top 20 shareholders	65%

Most Recent Statement

05/09/07 - Panax Joins Kentor in Geothermal Energy Partnership
11/04/07 - Applications Lodged for Geothermal Exploration Licences