will rise monday, page-3

Hardmano looks like another egg in the ever growing pool for the OX...
Kalimantan to Advance Copper Prospects Through a Joint Venture With Oxiana
TSX Venture Exchange
Symbol: "KLG"

VANCOUVER, Oct. 6 /CNW/ - Kalimantan Gold Corporation Limited (TSX
V: KLG) is pleased to announce the signing of a Heads of Agreement with
Australia's Oxiana Limited (ASX: OXR) to advance exploration of Kalimantan's
KSK Contract of Work (CoW) copper-gold porphyry prospects in Central
Kalimantan, Indonesia.
Commenting on the transaction, Rahman Connelly, Executive Chairman of
Kalimantan Gold said, "I am delighted that we have agreed a Heads of Agreement
with Oxiana to jointly advance exploration at our copper-gold prospects in
Kalimantan. Our Board strongly believes that our prospects have the potential
to host a world class deposit and ultimately a mining operation. We are
confident that partnering with Oxiana, and their proven resources and skills,
is the most expedient route to progressing the KSK prospects and realizing
value for all our shareholders and stakeholders alike."

Properties
Kalimantan holds exploration rights over a large 941km2 area in Central
Kalimantan which is governed by the KSK Contract of Work (CoW). Kalimantan
currently holds a 75% interest in the CoW, with the remaining 25% owned by a
locally-based company. Kalimantan has been exploring the area since 1996 and
has identified three advanced porphyry copper gold prospects and several other
highly prospective ones amongst a total 38 defined prospects in the CoW.
Kalimantan and Oxiana believe that these prospects have the potential to
become significant world class deposits. Kalimantan has conducted an
independent review to prioritize the most prospective targets for further
detailed exploration within the CoW.
The three key porphyry copper gold prospects are Baroi, Beruang and
Mansur. Exceptionally high-grade drill core results have been recovered at
Baroi - eg, Hole BF-5 with 85 metres @ 2.9% copper, 0.6% lead, 1.85% zinc,
70.1 grams/tonne silver, and 0.22 grams/tonne gold. The drilling program to
date has drilled 70 holes totalling 12,309 meters over an area of 6 by 4 km.
At Beruang, eight mineralized zones have been identified at the margins of a
12 km in diameter caldera. Exploration work included 19 medium depth diamond
drill holes which returned results up to 167 meters at 0.59% copper.

Agreement between Kalimantan and Oxiana
Initial Period: Oxiana will sole fund expenditure for a program of full
data compilation, review, reprocessing and assessment followed by drill
testing with an expenditure commitment of US$2.5 million. The program is
expected to include drilling 12 deep holes at the Baroi, Beruang and Mansur
prospects. Oxiana will endeavour to complete the program within 12 months, but
will have a maximum of 18 months to do so. If Oxiana decides to withdraw at
the end of the Initial Period, it will have earned no interest.
After the Initial Period, Oxiana can elect to continue to sole fund the
Joint Venture. If so, it will sole fund expenditure to earn up to a total
interest of 66.67% in the project, with the following milestones:

<<
- 40% equity at the completion of a Pre-Feasibility Study: 30-42 months.
- 66.67% equity at the completion of a Bankable Feasibility Study: 48-60
months from commencement.
>>

Oxiana may withdraw at any time during the Sole Funding Period, and
Kalimantan will have an option to acquire the interest held by Oxiana at the
time of withdrawal.
After completion of the BFS, both parties will contribute to future
expenditures in accordance with their percentage interests, and Oxiana will
use its best endeavours to arrange Kalimantan's share of project financing.

Agreement: Other Details
Pre-Feasibility Study: Oxiana will use reasonable endeavours to complete
the Pre-Feasibility Study within 30 months of the commencement date but will
have a maximum of 42 months to do so. Within 60 days of completing the
Pre-Feasibility Study, Oxiana can elect to continue to sole fund the Joint
Venture.
Bankable Feasibility Study: Oxiana will use reasonable endeavours to
complete the Bankable Feasibility Study within 48 months of the commencement
date but will have a maximum of 60 months to do so.
Sole Funding Period: Oxiana may withdraw at any time during the Sole
Funding Period by notice in writing to Kalimantan. Kalimantan will have an
option to acquire the interest held by Oxiana at the time of withdrawal for
50% of the total expenditure to the date of withdrawal less the amount
expended during the Initial Period. If Kalimantan does not exercise this
option to acquire within the stated time period, Oxiana will be free to sell
its interest to a third party.
Project Financing: If Kalimantan gives notice that it wishes to
participate in the project following completion of the Bankable Feasibility
Study and Kalimantan requests Oxiana's assistance, Oxiana will use its best
endeavours to arrange Kalimantan's share of project financing and, if
possible, on a non-recourse basis, provided that Oxiana will not provide any
security to support such financing.

About Kalimantan Gold Corporation: Kalimantan is an exploration company
focused on copper and gold in Indonesian Kalimantan. The Company holds
exploration rights over two distinct areas: the Jelai-Mewet epithermal gold
prospects in East Kalimantan, and the KSK Contract of Work copper-gold
porphyry prospects in Central Kalimantan. In pursuit of a stable operating
environment, the Company has a strong community and government relations
program. Kalimantan is quoted on the TSX Venture Exchange in Canada and
expects to list on AIM in London during October.

About Oxiana Limited: Oxiana is an international mining and exploration
company listed on the Australian Stock Exchange with a Market Capitalisation
of approximately A$4 billion. Oxiana owns and operates the Sepon gold and
copper mines in Laos, the Golden Grove base and precious metals operation in
Western Australia, and is developing the Prominent Hill copper-gold mine in
South Australia. Oxiana is also actively exploring in Australia, Asia and the
Pacific.

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