Convertible Security with Bergen

The Board of Directors of Central Rand Gold ("the Board") is pleased to announce that the Company has agreed to issue a zero coupon convertible security with the nominal value of US$240,000 (at the purchase price of US$200,000) subject to the terms and conditions set out in the convertible securities issuance deed ("the Deed"), the details of which were disclosed to the market on 7 June 2016 and 25 October 2016. The Board believes that, in addition to the loan agreement announced on 10 January 2017, this will provide the Company with additional working capital. 

In connection with the issuance of this convertible security, the terms and conditions of the Deed have been amended to provide for the nominal value and purchase price of the convertible security as set out above, and to provide that the conversion price in relation to the convertible security will be at the investor's election, being either:

(a) 80% of the average of five daily volume-weighted average prices of the shares on AIM (rounded down to the nearest one tenth of a pence) during a specified period preceding the relevant conversion, with the pounds sterling exchange rate of each US dollar conversion amount determined by reference to the foreign exchange rates during a specified period preceding the relevant conversion; or

(b) £0.0372.

For further information, please contact:

Central Rand Gold +27 (0) 87 310 4400

Lola Trollip

ZAI Corporate Finance Ltd - Nominated Adviser & Broker +44 (0) 20 7060 2220

John Treacy / Jamie Spotswood

Merchantec Capital - JSE Sponsor +27 (0) 11 325 6363

Monique Martinez / Marcel Goncalves

Johannesburg

12 January 2017

Sponsor

Merchantec Capital

The information communicated in this announcement is inside information for the purposes of Article 7 of Market Abuse Regulation 596/2014 ("MAR").