Exercise of Warrants and Issue of Shares

COMPANY ANNOUNCEMENT

3 April 2013

KOLAR GOLD LIMITED

("KGL" or the "Company")

Company Registration Number: 53026

EXERCISE OF WARRANTS AND ISSUE OF SHARES

Kolar Gold Limited ("Kolar Gold" or the "Company"), the Indian focused gold exploration and mine development company, announces that following a meeting of the Board of Directors held today, the following exercise of warrant and issue of shares has been approved.

As stated in the Company's Admission Document dated 10 June 2011, Kolar Gold granted its local partner SUN Mining two tranches of performance warrants for assisting with operations in India and performing an agreed set of services.

SUN Mining has exercised its second tranche of warrants with submission of the Exercise Notice dated 25 March 2013 and has today been issued 2,916,559 Ordinary shares of 7 pence each fully paid.

Application will shortly be made to the London Stock Exchange for 2,916,559 Ordinary shares to be admitted to trading on AIM. Admission is expected to occur on [9] April 2013. Following Admission, the Company will have 106,293,537 ordinary shares in issue. There are no shares held in treasury and so the total number of voting rights in the Company following Admission will be 106,293,537.

Enquiries:

Kolar Gold Limited

Nick Spencer +617 3846 0211

N+1 Singer (Nomad and Joint Broker)

James Maxwell / Jenny Wyllie +44 20 7496 3000

Ocean Equities Limited (Joint Broker)

Will Slack +44 207786 4370

Tavistock Communications

Ed Portman +44 207 920 3150