Annual Report Release

Central Rand Gold is pleased to announce its annual results for the year ended 31 December 2012.

Highlights

·; Stabilisation of mining operations and increase of ore production to targeted 12,000 tonnes per month ("tpm") and a subsequent run rate of 14,000 tpm in the final quarter of 2012.

·; CMR East is now included in Central Rand Gold's overall Probable Reserve profile and has raised total Probable Reserves to 719,700 ounces and added US$70 million to the inferred value of the Company's mining operations.

·; Focus on improving safety standards - measures have been put in place to address steep-stoping hazard awareness. No fatalities for the fifth consecutive year.

·; Significant progress in negotiations to resolve Acid Mine Drainage ("AMD") in the Central Basin. South African government-approved agreement signed to construct and implement a solution by late 2013. Central Rand Gold has donated two submersible pumps towards the Central Basin dewatering efforts and work began on the project by Trans Caledon Tunnel Authority ("TCTA") in February 2013.

·; Completion of pre-feasibility studies on CMR East and West and a scoping study on Crown West.

·; Submission of a revised Social and Labour Plan and Mine Works Plan to the South African Department of Mineral Resources ("DMR").

·; Upgrade and re-commission of Bateman Mill has improved mill capacity from 12,000 tpm to 16,500 tpm, with reliability still to be confirmed.

·; Upgrade and commission of sulphide focused closed crushing circuit to cater for underground run-of-mine production.

For full copies of the Company's Annual Report and Accounts, including the Company Profile, Directors' Report, Corporate Governance and Sustainable Development Report, Directors' Responsibility Statement, Company Secretarial Confirmation, Auditor's Report and full Financial Statements, please refer to the Company's website: www.centralrandgold.com.

In addition, the notice of the 2013 annual general meeting to be held on Friday, 7 June 2013 will be released using electronic means, on 7 May 2013. Shareholders should, therefore, download copies of the circular, notice and forms of proxy at www.centralrandgold.com.

Shareholders are advised that the annual general meeting ("AGM") of the Company is to be held at the offices of Carey Olsen, Carey House, Les Banques, St Peter Port, Guernsey, GY1 4BZ (not at the Company's registered office) at 11:00 (UK time) on Friday, 7 June 2013. Shareholders wishing to participate in the AGM in Guernsey via video link from London may do so at the offices of K & L Gates, One New Change, London, EC4M 9AF. Shareholders in South Africa wishing to participate in the AGM via video link from Johannesburg may do so at the offices of Statucor (Proprietary) Limited, 22 Wellington Road, Parktown, South Africa.

For further information, please contact:

Central Rand Gold +27(0) 87 310 4400

Johan du Toit / Patrick Malaza

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 Communications Limited +44 (0) 20 7466 5000

Bobby Morse / Louise Mason

www.buchanan.uk.com

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

Proprietary Limited

Jenni Newman

Chairman's report

I present to you the 2012 Integrated Annual Report of our Company that continues to survive, but struggles to prosper. The gap between survival and prosperity is rooted in "proof of concept" issues as, like many other start-up operations, we discover (and address) in-situ the weaknesses in our original plans.

Current status

While I described 2011 as turbulent in my report of last year, with the Company being buffeted by major events, 2012 has been a more normal year for a mining company, with the fortunes of the Company depending almost entirely on production issues. These are covered comprehensively in the 2012 Integrated Annual Report, so I will only summarise as follows:

·; The gold price and the Rand/Dollar exchange rate have supported our endeavours.

·; There has been no industrial unrest at our operations, though we monitor this situation carefully.

·; There is certainty, with signed contracts and site work under way, in the area of a de-watering programme for the Central Wits Basin on which we operate.

·; There have been no further challenges to our Mining Rights.

·; The dispute with Puno Gold Investments (Proprietary) Limited ("Puno"), our Broad-Based Black Economic Empowerment partner, has not developed and has not impacted the Company during the year.

·; Revised Social Labour Plans, Mine Works Plans and Environmental Management Plans, in line with our current size and future expectations, have been submitted to the Department of Mineral Resources.

·; The Company's Reserve base continues to mature and expand, with current operations at CMR West being re-evaluated based on conventional underground mining and with the completion at CMR East of an encouraging pre-feasibility study, an essential part of the upgrading of that property from Resource to Reserve. Both these exercises have been the subject of an independent Competent Person review.

·; The changeover from largely surface to largely underground mining, based on a conventional hand-held drilling methodology, has been successful operationally, but less so financially. The technical parameters in terms of tonnage, grade and Mine Call Factor ("MCF") (Face to Surface) have all been very close to targets, but operating costs per tonne milled have been substantially over budget.

·; As has been the case throughout our short history, our ill-conceived surface layout and metallurgical plants have delivered unacceptable (and unexpected) handling losses of gold and unacceptable availability of plant. These two factors, and particularly the unavailability of plant during the third quarter of the year;

- delivered a metallurgical performance substantially below industry norms; and

- almost single-handedly marked the difference between an expected cash-positive year and the actual loss and cash drain that occurred.

Metallurgical under-performance has, at its roots, the process and engineering compromises made in 2007 and 2008 in pursuit of the (since abandoned) notion of locating the metallurgical plants underground.

·; While the Company had been expecting to make a modest profit and be cash-positive over the year, the reality was an "all-in" operating cost that was US$350 per ounce higher than planned at US$1,978 per ounce, an operating loss, and a net cash draw down of US$863,000, leaving the Company (at US$4.5 million cash-in-hand) uncomfortably close to minimum required levels.

Is there a silver lining?

There is indeed a silver lining, even if it is more difficult to see a golden one.

In terms then of the silver lining:

·; We have a safe and de-watered mine for as far as the eye can see.

·; The potential to translate performance at Consolidated Main Reef to other Central Rand Gold Mineral Rights and Prospecting Rights is very real.

·; The mining method is proven and delivering material in the right quantities and at the right grade.

·; Higher emphasis is being placed on Mining Costs and efficiencies. The effort underground must move from proving it can be done, to proving it can be done to budget, and from that base towards demonstrating an acceptable return to shareholders.

·; Simplified and easier to work with (i.e. cheaper) underground support methodologies are being implemented.

·; Alterations to material handling layouts on surface have already substantially reduced surface gold losses in the three months of December through to the end of February. The Face-to-Mill Mine Call Factor has increased in this period from 65% to 75%. Without any further alterations, this is the difference between the losses of last year and modest profits.

·; Further metallurgical layout modifications to reduce losses are in hand.

·; Post the year-end one of our Bateman Mill drive gearboxes failed in late February 2013. Your Company has bitten this particular bullet and sourced two brand new gearboxes. For a three-week period, from the breakdown to re-installation, this plant ran at 60% load with surplus material being toll refined.

·; The Company is in a state of unstable equilibrium. Cash reserves are stretched to the point where, while toll-refining represents a survival (just) Plan "B" in the event of further Bateman Mill problems, delivery from underground to plan in the first quarter of the year is a sine qua non. With that proviso, the "silver lining" should see a profitable year and a substantial increase in cash-in-hand by year-end.

Where is the gold lining?

The frustration facing shareholders of Central Rand Gold is that it was launched as a potential major, and it is now little more than a struggling junior. This junior has been through many struggles as it has tested and found wanting the various mining and extraction philosophies proposed at the launch of the Company.

·; The time-honoured tradition of mining companies "trading out" of their difficulties is a possible and viable scenario for Central Rand Gold, but it would take many years for the Company to fund its own growth and the prospect is probably not very satisfying to shareholders. Absent of any alternative this is, of necessity, the base case.

·; Management continues to test the debt market in South Africa, and while this seems less hopeless than it did a couple of years ago, Central Rand Gold would have to be in a more certain operational position than it is right now to secure any meaningful bank support.

·; Further capital of some sort is necessary if the Company is to break free of the economies of scale inefficiencies that now burden it. The obvious questions are:

- How big?

- How much?

- Credibility?

- Shareholder appetite?

Your Board believes that the starting point here is credibility, which will determine appetite, and that if the subject is to be broached with shareholders it must be off a stronger track record than is currently tabled. The expectation is that this matter could be examined from a credible base around the third quarter of the 2013 year.

·; The labour relations drama of 2012 in the precious metals mining industry in South Africa has bypassed Central Rand Gold. Nevertheless, the turbulence and uncertainty have tarnished the industry and rendered corporate action around or by Central Rand Gold, in any form, less likely. The Company is alive to the potential of such action, and continues to explore alternatives, particularly were they to deliver the Company from its current funding constraints.

Where to trade?

Last year I tabled a suggestion that Central Rand Gold Limited should move from the LSE Main Board to an Alternative Investment Market ("AIM") listing. Whatever the merits of such a proposal in terms of costs and possibly being closer to our retail shareholder base, this suggestion has not found favour with such major shareholders as we have canvassed.

While the matter is not dead, this idea has been shelved for the present.

Puno

Almost unbelievably the situation with our Black Economic Empowerment partner remains unchanged from last year's report. While last year I reported that a court date had been set to hear our application to either find that our understanding of the funding mechanisms in the Central Rand Gold South Africa Shareholders' Agreement is correct, or to have the Court appoint an arbitrator, various legal contrivances by Puno have pushed this date out to May 2013.

That date approaches and we expect fundamental change in this situation in the second half of this year.

Governance

For completeness I repeat my observation of last year that with the slimmed down status of the organisation we are stretched in terms of the detail of compliance with the Combined Code (and King III in South Africa). This particularly refers to internal controls and the separation of powers.

The Board has reviewed the effectiveness of the internal controls and is satisfied therewith.

There is a separate section on Governance in the body of the 2012 Integrated Annual Report.

Appreciation

I extend my thanks to the rest of the Board and to the executive team. That we are still here and showing reasonable prospects is a testament to their tenacity and efforts.

Michael McMahon

Chairman

Chief Executive Officer's report

Introduction

Looking back on 2012, it is pleasing to be able to inform shareholders that considerable progress was made in all of the areas targeted for particular focus and attention in the prospects section of my 2011 report.

A prime goal was to stabilise Central Rand Gold's mining operation, based on its new mining methodology, and build ore production up to a sustainable level of 12,000 tpm. This level was reached by August 2012 and by November 2012 had been increased to a run rate of 14,000 tpm, a number that management is planning to maintain during 2013. With sufficient underground ore available, it is unlikely that any development in the decline will take place until the end of 2013 or early 2014.

Another important objective was to calculate and report a new Reserve base, taking the new mining methodology into account. Central Rand Gold actually went one better with two economic studies being completed during the year - independent mining consultants, Venmyn Rand (Proprietary) Limited ("Venmyn"), produced a report in June 2012 that outlined Central Rand Gold's latest Reserve statement indicating the viability of the Company's mining operations; and in November 2012, Venmyn also produced an in-depth Competent Person's Report and pre-feasibility study on the Company's Consolidated Main Reef East project.

As a result of the 12 June 2012 announcement, CMR West's Probable Reserves were outlined at 406,900 ounces of gold (3.55 million tonnes at 3.56 grams per tonne ("g/t")). Following the 12 November 2012 announcement, CMR East's Probable Reserves were outlined at 312,800 ounces (3.79 million tonnes at 2.57 g/t). The inclusion of CMR East in Central Rand Gold's overall Probable Reserves profile has raised total Probable Reserves to 719,700 ounces and added around US$70 million to the inferred value of the Company's mining operations.

Both of the aforementioned economic studies are important indicators of the undoubted potential of Central Rand Gold to become a sustainable gold producer.

A further development milestone was achieved through the completion and announcement on 28 February 2013 of an Economic Scoping Study ("Scoping Study") for the Crown West Mining Right. The Scoping Study was undertaken to determine the potential in this target area and to test whether further exploration and developmental work was justified.

The production profile demonstrates that at peak production in the scheduled 10-year life-of-mine, average gold production of 53,000 ounces is anticipated, returning a net present value ("NPV") of approximately US$63 million.

Whilst the Scoping Study is not a definitive economic assessment and does not impart Reserve status to the project, this production profile and valuation strongly suggests that this area undergo a pre-feasibility study (with associated diamond drilling) in order to increase the Resource confidence from Inferred to Indicated and ultimately Mineral Reserves.

Another objective for 2012 was to explore opportunities with other interested parties to extract value from Central Rand Gold's extensive Mining Right area. To this end we signed an agreement with Goldplat Recovery (Proprietary) Limited, in terms of which, a small shaft in the Crown East area is to be opened up in order to gain access to the reef. Revenue royalties will be generated for Central Rand Gold during 2013 as a result of this mutually beneficial agreement.

Last, but certainly not least, it was a stated intention to submit and receive approval for a revised Social and Labour Plan and a Mine Work Programme. All the required documentation was submitted on schedule by June 2012, but feedback from the DMR is still awaited.

My report outlines the major corporate and operational activities that took place during the year, setting the scene for further progress to be made during 2013.

Welcome progress on acid mine drainage

The rising water table in the Central Basin as a result of AMD has over the past few years been a major concern and indeed a massive threat to the Company's prospects and continued existence. So serious had the problem become that Central Rand Gold had to take the decision to suspend underground mining development in the second quarter of 2011, placing a significant question mark over the Company's future prospects.

It was therefore a great step forward when an agreement was signed at the end of December 2012 with TCTA, the organisation appointed by the South African Minister of Water Affairs to resolve the growing AMD issue in the Central, Eastern and Western Basin areas. Through this agreement, Central Rand Gold agreed to donate its two German-made submersible water pumps to the initiative in return for the right to dewater the Central Basin and maintain the Environmentally Critical Level ("ECL") at around 225 metres below the surface. It is important to note that Central Rand Gold obtains access to its resources to ECL at no further cost to itself.

While Central Rand Gold will pay for the incremental cost of dewatering below the ECL level, it will have access to a government funded infrastructure that is being established to ensure that the Central Basin can be dewatered on an ongoing basis.

TCTA has appointed construction specialist, Group Five Limited, to establish the infrastructure and it is expected that this project, which got underway in mid-January 2013, will be completed by the last quarter of 2013, enabling dewatering to commence.

For Central Rand Gold and other companies and communities located in the Central Basin area of the Witwatersrand, it is hugely positive that action is finally being taken. Industry and the government are now working closely together to come up with a workable solution for a problem that has the potential to cause massive economic and social upheaval on the southern fringes of the City of Johannesburg.

The Ritz pumps that Central Rand Gold has contributed to the dewatering solution were acquired at a cost of €3.5 million and are capable of pumping 1,500 kilolitres of water per hour at 43 bar pump pressure differential with a pump efficiency rate of 81%. These pumps will ideally complement the new high density sludge plant that is being constructed by Group Five Limited with a capacity to process around 84 million litres of AMD on a daily basis.

With concrete steps now being taken by industry and government to control AMD, a major risk factor is in the process of being reduced and ultimately removed as far as the future of Central Rand Gold's mining operations are concerned.

Exploration and geological update

Resources and Reserves

Independent mining consulting company, Venmyn, was appointed in March 2012 to validate and sign-off on updated Resource and Reserve estimations undertaken by Dr Carina Lemmer (an Independent Competent Person for Resources) and Mr Lefu Mohloki (an Independent Competent Person for Reserves). During November 2012, Venmyn was again appointed to undertake a similar exercise validating the newly established Reserves underlying CMR East.

In January 2013, Dr Lemmer undertook a further re-estimation of the Main Reef Resources underlain by Consolidated Main Reef with a view to incorporating additional sampling captured during the year subsequent to the previous update and also discounting ore tonnage mined during 2012.

SAMREC Compliant Mineral Resources

\* Totals are based on additional decimal points resulting in minor total discrepancies.

The main change in Resources during the 2012 year was the reclassification of approximately 32 million ounces of Resources deeper than 450 metres to the lower category of Exploration Target. This change is linked to the rising water table and the present ability to dewater to that depth. These Resources can be reverted to their previous higher confidence category with appropriate arrangements to extend pumping depth.

The decision to move away from fully mechanised stoping and adopt a conventional hand-held stoping method required the re-estimation of Reserves. This was undertaken during March 2012.

SAMREC Compliant Mineral Resources

\* Totals are based on additional decimal points resulting in minor total discrepancies.

Pre-feasibility studies undertaken on CMR East during November 2012 resulted in the declaration of a further 313,000 ounces of Probable gold Reserves.

NOTE: The information in this statement relating to Mineral Resources and geology has been reviewed and approved by Mr Keith Matier, BSc (Hons), GDE, PrSci Nat, who is a Competent Person in terms of the SAMREC code. Mr Matier is the Geology Manager of CRGSA and has over 19 years' experience in exploration, mineral resource management and mineral evaluation.

Surface exploration

Exploration focus, through systematic mechanical trenching and geological mapping and sampling, moved to a new target area known as the Avon project, approximately four kilometres from the plant. This resulted in the discovery of between 125,000 and 155,000 tonnes of potential treatable ore.

The table below details the Surface Exploration Target Inventory as at 31 December 2012. The Exploration Target also includes an estimate of clean-up residue from the current stockpile areas and spillage areas in the vicinity of the decommissioned Bateman plant.

Note: The potential quantity and grade described by the term "Exploration Target" is conceptual in nature and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the definition of a Resource. Further exploration work is ongoing and includes trial mining and processing of this shallow target to establish grade and orebody continuity, mineability, dilution and throughput characteristics.

Operational update

Safety

While Central Rand Gold has had a proud safety record since its inception, safety was more of a challenge in 2012 than in the past. A total of 13 lost-time injuries (five in 2011) were recorded, 12 of which came from underground operations (three in 2011) and one from the metallurgical plant (two in 2011). This rise in lost-time injuries was mainly due to the increase in labour in the fourth quarter of 2012 in order to build up production to 14,000 tonnes of ore per month.

The accident analysis has indicated that most of the accidents resulted from rolling rocks and slip and fall accidents. Measures have been put in place to address this through steep-stoping hazard awareness training and vigilance in operating, in line with safety standards. On-face supervision has also been improved.

Focus on improving safety standards and awareness through safety programmes has been maintained, including weekly Safety Forums, daily start of shift safety talks and weekly safety meetings across the operations to improve safety awareness throughout the mine. The Company continues to treat safety as a top priority.

The following table shows overall safety statistics for 2012 (a more comprehensive safety overview is contained in the Sustainable Development section of the 2012 Integrated Annual Report):

Mining operations

The following table shows key mining statistics for 2012, comparing actual statistics and those achieved in 2011.

Underground mining

Production was mainly in line with targets throughout the year and underground production was successfully increased to 14,000 tpm in the fourth quarter of 2012. This has increased our confidence on the sustainability of conventional stoping and the plan is to increase production and maximise efficiencies as we develop the mine.

Conventional stoping

2012 was a year that Central Rand Gold used to prove the conventional stoping concept and this has proven feasible as targets have consistently been achieved, despite safety being an issue as a result of steep mining conditions. However, measures have been put in place to minimise accidents on the mine by introducing effective steep-stoping standards that suit our physical mining environment.

Stoping is done by means of hand-held jackhammers using 1.8 metre drill steel to drill 32 millimetre shot holes. The shot holes are charged with explosives and are blasted at the end of the day shift. The night shift then cleans the stopes by means of 55 kilowatt scraper winches and scrapers. The reef is dropped to the draw-point to be loaded by means of a combination of a 10 tonne and a 14 tonne Load Haul Dumper onto the 25 tonne Articulated Dump Trucks. The reef is subsequently hauled to the stockpiles at the processing plant.

Stope support

Our stope support system is a combination of 180 mm x 20 mm mine-poles installed 2.0 metres apart on dip and strike and a line of 1.8 m x 20 mm resin-bolts between each line, also installed 2.0 metres apart on dip and strike. This has proven to be effective at the current depth of less than 210 vertical metres from surface to effectively hold the hanging-wall. However, towards the middle of the year, 75 cm x 75 cm end-grain packs were introduced to support friable hanging-wall areas, when encountered.

Production

Production from underground amounted to 118,058 tonnes for the year, which was slightly above the Company's planned production target of 115,617 tonnes. The production target for 2012 was increased to 14,000 tpm in the last quarter, which was slightly above the original target of 12,000 tonnes.

Approximately 350,000 tonnes of ore available from stopes without the necessity of any capital development has been identified. This will provide some 19-20 months of production at the current target levels.

Surface mining

2012 Production from slot mining pits:

Surface mining performed well during 2012 with an average in-situ (undiluted) grade of 3.11 g/t and an average stripping ratio of 1:8 from January to December 2012, which was below the targeted ratio of 1:10.

There was no surface mining in September and October 2012 as the Slot 8 pits came to the end of their productive lives. A prospecting exercise was carried out at the Avon project which is based in the Langlaagte area. The western side of the pit at the Avon project yielded good grades over a limited area. Mining commenced in November 2012 and ended in mid-January 2013 at the point which the good grades were depleted. Then the eastern part of Avon was immediately started. This pit will be in production for the rest of 2013 at the current mining rate.

As at 31 December 2012, there were between 70,000 tonnes and 100,000 tonnes of reef remaining between Avon West and East pits.

Metallurgical update

The 2012 year saw several fundamental changes and challenges around the processing plant. In March 2012, modifications were made to the old Bateman concentrator plant to allow for the mill to be used independently of the concentrator circuit, increasing the milling capacity from around 12,000 tpm to between 16,000 and 20,000 tpm, in line with the anticipated ramp-up of underground production.

The first six months of 2012 were dedicated to processing soft oxide ore mined from surface slots, but as these open pits became deeper, grades dropped off, requiring the change-over from predominately oxide processing to the treatment of harder, but higher grade sulphide ore sourced from underground.

The old Vertical Shaft Impactor ("VSI") crusher section of the Bateman concentrator was isolated and modified to allow for secondary crushing of sulphide ore. This project was completed during May 2012.

The change-over from oxides to sulphides was, however, not without challenges. The subtle mineralogical differences between oxide and sulphide ore created several metallurgical challenges. July 2012 was essentially a month of pilot trials, used to tweak the metallurgical process, identify additional modifications to the system and to optimise the metallurgical performance of sulphide ore treatment.

As was highlighted in the June 2012 Interim Report, the greater part of the month of August 2012 saw both ball mills experiencing major unplanned shutdowns, due in part to the oxide to sulphide transition process.

Toll treatment of sulphide ore during August 2012 was accelerated to make up for the production downtime, whilst the plant underwent further sulphide process modifications. Following this, the process plant was brought back online at the end of August 2012, fully equipped and ready to process up to 100% sulphide feed when required. With the identification of high grade oxide ore from the Avon project, the sulphide/oxide mix was set at 65:15.

Notwithstanding a good start to the fourth quarter of 2012, (following a third quarter marked by planned and unplanned plant shutdowns), the last few days of December 2012 saw the Bateman Mill experiencing gearbox problems culminating in a two week shutdown and rectification. Gearboxes have now been modified to take up the extra load required and the mill has performed well since.

A planned five day shutdown of the CIP Mill, in order to replace a worn pinion gear, was extended for a further seven days upon discovery of a bent pinion coupling shaft requiring additional fabrication. The mill was returned to full production on 28 January 2013 and it is hoped that production targets for both mills will now be consistently achieved.

Major modifications to the VSI crushing circuit were undertaken during December 2012 and January 2013 with the aim of replacing the existing open crushing configuration which required external mobile jaw crushers with a self-contained closed circuit crushing train. This is intended to optimise tramming, eliminate external crushing costs and most importantly to minimise fine gold losses during the primary crushing stage. This gold loss area has been identified as the main contributor to the sub-par MCF recently experienced. Batch testing of underground sulphide ore is currently underway and is generating encouraging results. An initial combined batch of approximately 3,560 tonnes was processed in January 2013 and early February 2013 and returned a MCF of 60% from face to Belt head-grade. A second batch consisting of approximately 3,000 tonnes processed in February 2013 returned a much improved MCF of 71%. Batch processing of sulphide ore will continue until the MCF has achieved a predictable steady state equilibrium of between 75% and 85%.

Gold production

In 2012, it was disappointing to report that the Company's gold output fell by 1,147 ounces (or 7.7%) to 13,709 ounces from 14,856 ounces of gold produced during 2011.

Financial update

Results

Full year net loss reduced by 72% to US$4.5 million (0.28 cents per share) against the prior year's loss of US$16.1 million (1.01 cents per share). This encouraging improvement is attributed to a number of initiatives including:

·; Full year realisation of renegotiated contract mining rates, material and service rates and head count resizing implemented in mid-2011.

·; Focus on extracting ore from already developed areas to prove the safety and economics of conventional mining methods with resultant lower development costs.

·; Continued initiatives to reduce the cost of doing business through competitive sourcing.

·; Logistics efficiencies from the relocation of the head office to the heartbeat of mining activities.

·; Metallurgical process improvements to reduce material and plant hire costs.

·; Stronger realised gold price.

·; Profit on redundant asset sales net of impairment of assets previously held-for-sale.

However, the aforementioned benefits were partly reduced by the lower plant availability as we implemented efficiencies and plant reconfiguration to improve capability to handle hard rock, reduce gold loss and increase plant capacity from 12,000 tpm to 18,000 tpm. As a result, full year gold production at 13,709 ounces was 7.7% lower than 2011's 14,856 ounces. Direct cash operating costs averaged US$1,381 per ounce against the prior year figure of US$1,761. All-in cash costs averaged US$1,960 per ounce against the prior year's US$2,476 per ounce.

Cash and cash equivalents

Cash and cash equivalents balance is reported at US$4.5 million as at 31 December 2012 (2011: US$5.4 million).

Prospects

During 2013, Central Rand Gold will continue to focus on improving its MCF to achieve a more sustainable and industry norm of between 75% and 85%. A further priority will be to review the suitability of current metallurgical plants that are being used to process ore on site.

As a result of the TCTA agreement, and the appointment of a contractor to construct and implement a dewatering facility in the Central Basin, it is hoped that major inroads will be made into establishing a long-lasting solution to the AMD problem that has cast doubt over Central Rand Gold's operations for the past few years.

Based on the current underground ore production profile of 14,000 tpm being maintained, Central Rand Gold expects full year gold production in 2013 to be in the range of 14,500 ounces to 15,000 ounces.

However, management is fully aware of the need to move beyond the production range that had been set during 2011 and 2012 and plans are in place to finalise realistic and sustainable medium- and long-term growth strategies by June 2013.

At 31 March 2013 the Group had cash and cash equivalents of US$2.6 million. Since the year end, gold prices have decreased and while the Directors continue to adopt the going concern basis in the preparation of the financial statements, further consideration of this is set out in note 1.1.

Thanks

A big vote of thanks goes to everyone who made a contribution to the Company during 2012 and to those who continue to be involved in some way in its day-to-day activities. A special thank you to the Directors, management, staff, suppliers, shareholders and community members, all of whom are important stakeholders and play a vital role in the Company's fortunes.

Johan du Toit

Chief Executive Officer

Basis of preparation and general information

1. General information

These are the non-statutory financial statements, extracted from the Group annual financial statements for the year ended 31 December 2012.

Central Rand Gold is a Guernsey incorporated company and it is also registered in South Africa as an external company. One of its subsidiaries, Central Rand Gold (Netherland Antilles) N.V. ("CRGNV"), was incorporated in the Netherlands Antilles. Central Rand Gold's operating subsidiary is Central Rand Gold South Africa ("CRGSA"). Central Rand Gold has a primary listing on the London Stock Exchange ("LSE") and a secondary listing on JSE Limited ("JSE").

Central Rand Gold complies with the company laws of its place of incorporation being Guernsey and the company laws of the place of its external registration being South Africa. One of its subsidiaries, CRGNV, is incorporated in the Netherlands Antilles, therefore the Group is also impacted by the company laws of the Netherlands Antilles.

The Group's annual financial statements for the year ended 31 December 2012 were approved for issue on 26 April 2013. The auditor has issued his opinion on the Group's financial statements for the year ended 31 December 2012 which is unmodified but does contain an emphasis of matter paragraph in respect of the matters referred to under note 2 'Going concern' and is available for inspection at the Company's registered address.

Emphasis of matter - Going concern

In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosures set out in note 1.1 to the financial statements concerning the Group's ability to continue as a going concern which depends, in particular, upon a number of key factors such as sustainable gold price and minimum mine call factor. These factors, together with the other matters explained in note 1.1, indicate the existence of material uncertainties that may cast significant doubt on the Group's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the Group was unable to continue as a going concern.

2. Basis of preparation

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards and Interpretations (collectively "IFRS") issued by the International Accounting Standards Board ("IASB") as adopted by the European Union ("EU").

The consolidated financial statements are presented in United States Dollars ("US$" or "US Dollar") and rounded to the nearest thousand. The functional currency of the parent company, Central Rand Gold Limited, is British Pound Sterling ("£") and the functional currency of its principal subsidiary, Central Rand Gold South Africa (Proprietary) Limited ("CRGSA") is South African Rand ("ZAR" or "Rand").

Going concern

The Directors have prepared the financial statements on the going concern basis having considered the current operations, the current funding position and the projected funding requirements for the business for at least 12 months from the date of approval of the financial statements as detailed below.

At 31 December 2012, the Group had cash of US$4.5 million. At 31 March 2013, the Group had cash of US$2.6 million, the decrease resulting from lost gold production due to poor plant availability, related higher than planned repair costs and lower realised mine call factor. The Directors have initiated action plans to improve mine call factors and gold production through an improved mine blasting approach in thin reef areas, toll treatment agreement and improved sorting.

The Directors have prepared cash flow projections until 2020 that reflect the current mine plan adopted by the Directors. The mine plan is based on mining taking place above the environmental critical level and is therefore unaffected by the rising water table. These projections show that the Group has sufficient funding for at least the next 12 months from the date of approval of these financial statements and hence the Directors have prepared the financial statements on a going concern basis.

The cash flow projections are most sensitive to changes in the gold price and mine call factor assumptions (the mine call factor is the ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product after processing with the amount estimated in the ore based on sampling). An average mine call factor of 70% and a gold price of US$1,400 are included in the projections for the 12 month period from the date of approval of these financial statements. Any changes to these assumptions, individually or in aggregate, may alter the going concern conclusion and a reasonably plausible change in the assumptions may result in the Group not having sufficient funding available for the business for the 12 month period from the date of approval of these financial statements. For example, if the gold price assumption is reduced to US$1,380 for the 12 month period and the mine call factor declines to 60% then this may result in the Group not having sufficient funding for the 12 month period from the date of approval of these financial statements. As set out above management is currently considering alternatives to reduce this risk arising from the mine call factor.

In addition, the risk inherent in any early-stage mining operation will continue to apply to the Group, in particular, the consistent availability of the metallurgical plant and machinery.

Conclusion

The continued uncertainty around the mine call factor and future gold price are material uncertainties that may cast significant doubt on the Group's ability to continue as a going concern and it may therefore be unable to realise its assets and discharge its liabilities in the normal course of business.

Nevertheless, after taking account of the Group's funding position and its cash flow projections and having considered the risks and uncertainties associated with these projections, the Directors have a realistic expectation that the Group has adequate resources to continue in operational existence for at least 12 months from the date of approval of these financial statements. For these reasons, they continue to prepare the financial statements on a going concern basis. These financial statements do not include any adjustment that would result from the going concern basis of preparation being inappropriate.

3. Accounting policies

The accounting policies have been consistently applied to all years presented.

(a) New and amended standards adopted by the Group

The Group has adopted the following new and amended IFRSs as from 1 January 2012:

In 2012 the Group adopted the amendments to IFRS 7 'Disclosures - Transfers of Financial Assets' and IAS 12 Deferred Tax: Recovery of Underlying Assets. These have no significant impact for the Group's profit for the period, net assets or cash flows.

(b) New standards, amendments and interpretations to not yet adopted

A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 January 2012, and have not been applied in preparing these consolidated financial statements. Those which may be relevant to the Group are set out below. The Group does not plan to adopt these standards early.

The amendments to IAS 19 'Employee Benefits' are effective for accounting periods beginning on or after 1 January 2013 and were endorsed by the EU in June 2012. The adoption of the IAS 19 amendments is not expected to have a significant impact on the Group's net assets.

The interpretation of "IFRIC 20 Stripping costs in the production phase of a surface mine" requires production stripping costs in a surface mine to be capitalised if, and only if certain criteria are met. The stripping activity asset is recognised and accounted for as a component of the mining assets to which it relates. The adoption of IFRIC 20 is not expected to have a significant impact upon the Group's net results or net assets.

IFRS 9 'Financial Instruments' was reissued in October 2010. It is applicable to financial assets and financial liabilities. For financial assets it requires classification and measurement in either the amortised cost or the fair value category. For a company's own debt held at fair value, the standard requires the movement in the fair value as a result of changes in the company's own credit risk to be included in other comprehensive income. It is effective for accounting periods beginning on or after 1 January 2015. The standard has not yet been endorsed by the EU. The adoption of IFRS 9 is not expected to have a significant impact upon the Group's net results or net assets.

IFRS 10 'Consolidated Financial Statements', IFRS 11 'Joint Arrangements', IFRS 12 'Disclosure of Interests in Other Entities' and IFRS 13 'Fair Value Measurement' were issued in May 2011, along with consequential amendments to IAS 27 'Separate Financial Statements' and IAS 28 'Investments in Associates and Joint Ventures'. The new and revised standards were endorsed by the EU in December 2012, with an effective date of 1 January 2014 (except for IFRS 13 which has an effective date 1 January 2013) but with early adoption permitted. The Group does not intend to adopt the new and revised standards from 1 January 2013. The adoption is not expected to have a significant impact upon the Group's net results, net assets or disclosures.

The amendments to IAS 1 'Presentation of Items in Other Comprehensive Income' and amendments to IAS 32 and IFRS 7 on offsetting financial assets and liabilities are effective for accounting periods beginning on or after 1 July 2012, and 1 January 2014 (IAS 32) and 1 January 2013 (IFRS 7) respectively. They are not expected to have a significant impact upon the Group's net results, net assets or disclosures. These amendments were endorsed by the EU in 2012.

4. Directorate

During the financial period under review, the composition of the Board of Directors remained unchanged as follows:

5. Segment reporting

An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. The entity's chief operating decision maker reviews information in one operating segment, being the acquisition of mineral rights and data gathering in the Central Rand Goldfield of South Africa, therefore management has determined that there is only one reportable segment. Accordingly, no analysis of segment revenue, results or net assets has been presented. No corporate or other assets are excluded from this segment.

6. Share-based payments

During the year, no further share options were granted to employees.

7. Dividends

No dividends were declared or paid during the year under review.

8. Reconciliation between basic loss and headline loss attributable to equity holders of the Group

9. Events occurring after reporting date

No material changes, other than those highlighted in this report, have occurred in the affairs of the Group between the end of the financial year and the date of this report.

Issued on behalf of: Central Rand Gold Limited

Date: 26 April 2013