ASX Announcement

21 January 2013

KULA GOLD LODGES ENVIRONMENTAL IMPACT STATEMENT Directors David Frecker Independent Chairman and Non-Executive Director Lee Spencer Managing Director and CEO John Watkins

Executive Director and CFO

Louis Rozman

Non-Executive Director

Mark Stowell Independent Non- Executive Director

Kula Gold Limited (Kula Gold or the Company) is pleased to announce the lodgement, with the PNG Department of Environment and Conservation (DEC), of the Environmental Impact Statement (EIS) for the company's Woodlark Island Gold Project (the Project).

Lodgement of the EIS completes the submissions to the PNG Government in support of the Mining Lease Application and development process. This follows the lodgement late last year of the company's Mining Lease Application in conjunction with the Feasibility Study and Development Proposal.

Kula Gold has worked closely with the people of Woodlark Island since the commencement of the Project in 2007 and has implemented an extensive stakeholder engagement program in support of the EIS approval process.

Managing Director's quote:

Commenting, the Managing Director of Kula Gold, Lee Spencer, said: "The lodgement of our EIS is the final key milestone for Kula in the application process for our Mining Lease and we look forward to working co-operatively with the PNG Government and local communities during this process."

ASX Code: KGD

126.3 million ordinary shares

5.2 million unlisted options

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Background: Woodlark Island Gold Project, PNG

Kula Gold Limited is developing the 100% owned Woodlark Island Gold Project, located 500 kilometres east of Port Moresby in the Milne Bay Province, Papua New Guinea.

For further information, contact:

Lee Spencer John Watkins

Chief Executive Officer Chief Financial Officer Kula Gold Limited Kula Gold Limited lspencer@kulagold.com.au jwatkins@kulagold.com.auP. 02 9262 5651 P. 02 9262 5651

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Forward Looking Statements

All statements other than statements of historical fact included in this announcement including, without limitation, statements regarding future plans and objectives of Kula Gold Limited (Kula Gold) are forward-looking statements. When used in this announcement, forward-looking statements can be identified by words such as 'may', 'could',
'believes', 'estimates', 'targets', 'expects' or 'intends' and other similar words that involve risks and uncertainties.
These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the company, its directors and management of Kula Gold, that could cause Kula Gold's actual results to differ materially from the results expressed or anticipated in these statements.
The company cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. Kula Gold does not undertake to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by applicable law and stock exchange listing requirements.
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