Kingsgate's Thailand subsidiaries have been granted 51 of the 101 Special Prospecting Licence's ("SPL's") currently under application surrounding the Chatree Gold Mine. The remaining 50 SPL Application's ("SPLA's") are anticipated to be granted soon.

Kingsgate believes that Thailand's central gold province has potential for numerous large gold mines. Several prospects have 'drill ready' targets that will be tested over the next year. Kingsgate considers that some of these prospects will develop into similar projects as the Chatree mine which has geological resources in excess of four million ounces and potential for five to ten million ounces.

The 51 SPL's that were granted are located in Phitsanulok and Pichit Provinces and cover about 700 km2 out of a total of approximately 1,500km2 applied for. The remainder are located in Phetchabun Province.

The granting of these SPL's enables full exploration to be conducted in the areas, including drilling, and will commence immediately.

Since applying for these SPLA's almost three years ago, Kingsgate's Thailand subsidiaries have been conducting permissible reconnaissance exploration including airborne geophysics (magnetic, radiometric and resistivity surveys), regional stream sediment sampling, rock chip sampling and geological mapping.

This work has led to the discovery of over thirty significant gold prospects, several of which are ready for drilling.