Acid Mine Drainage

· High Density Sludge ("HDS") Plant operational since 23 May 2014

· No 'fatal flaws' identified throughout commissioning phase

· HDS Plant discharging water within the approved specification

· HDS Plant able to operate at nameplate de-watering capacity of 72 million litres per day

· Visible reduction of water at CRG mine site, with a reduction of 1.5 metres observed last week

HDS Plant Commissioning Phase

As previously announced on 28 May 2014, the Trans Caledon Tunnel Authority ("TCTA") has commenced pumping and treatment operations of its HDS Plant. Since then, the HDS Plant has undergone a thorough commissioning phase under the guidance of TCTA.

During the commissioning phase no 'fatal flaws' in the design of the HDS Plant were identified. However, the HDS Plant did experience typical 'teething issues', which resulted in TCTA operating the HDS Plant at a reduced rate with only one of the two submersible pumps running at any given time.

Since 23 June 2014, with the 'teething issues' largely resolved, TCTA has been operating the HDS Plant at an increased rate, with both of the submersible pumps now operational, de-watering capacity of 72 million litres per day has been achieved.

Importantly, the commissioning phase has confirmed that the HDS Plant is performing in line with design expectations and, most importantly, is discharging water in line with the approved specification.

Central Basin Water Level

Up to mid May 2014, the Company witnessed a rise in the water level, to approximately 165 meters below surface, within its mining area in the Central Basin. However, the Company has subsequently observed that the water level within its mining area has remained relatively stable. Furthermore, in the last week, the Company has witnessed a reduction in water level as the performance of the HDS Plant has improved throughout the commissioning phase.

The Company is encouraged by the fact that, notwithstanding only one of the two submersible pumps operating, the water level was initially stabilised and then reduced. The reduction provides the first substantive evidence of the ability of the submersible pumps and the HDS Plant to dewater the entire Central Basin which hosts the Company's significant resource base and exploration target.

Johan du Toit, Chief Executive Officer of the Company commented: "This is the first time since 2008, when the previous pump station was flooded, that the rising water table in the Central Basin has been halted. The drop in the water table is a positive indication that the Company's large remaining resource within the Central Basin can still be realistically de-watered and accessed. With the HDS Plant now able to operate at full capacity, it is further hoped that we will see an acceleration in the drop of the water table so that the mining operations can re-access some of the mining areas which were abandoned due to the rising water table."

For further information, please contact:

Central Rand Gold +27 (0) 87 310 4400

Johan du Toit / Nathan Taylor

Charles Stanley Securities Limited +44 (0) 20 7149 6478

Marc Milmo / Mark Taylor

Merchantec Capital +27 (0) 11 325 6363

Monique Martinez / Marcel Goncalves

Buchanan +44 (0) 20 7466 5000

Bobby Morse / Louise Mason

Jenni Newman Public Relations +27 (0) 11 506 7351

Proprietary Limited

Jenni Newman

Johannesburg

26 June 2014

Sponsor

Merchantec Capital