DMR Update

Immediate release 5th September 2011

Central Rand Gold Limited

("Central Rand Gold" or the "Company" or the "Group")

(Incorporated as a company with limited liability under the laws of Guernsey,

Company Number 45108)

(Incorporated as an external company with limited liability under the laws of

South Africa, registration number 2007/0192231/10)

ISIN: GG00B24HM601

Share code on LSE: CRND

Share code on JSE: CRD

CENTRAL RAND GOLD AWAITS DEPARTMENT OF MINERAL RESOURCES' RESPONSE TO ITS TIMEOUS PRESENTATION AND DOCUMENTATION

In response to recent media speculation, Central Rand Gold Limited can confirm that it has responded in full to the South African Department of Mineral Resources (DMR) in terms of a compliance notice it received from the DMR on August 5, 2011.

In terms of this notice, the DMR said it was considering re-evaluating the Company's Mining Right as a result of certain elements of "non-compliance" with Social Labour Plan (SLP) requirements of its New Order Mining Right. This plan was based on its original 2008 operational plans submission which had envisaged a considerably larger resource base and operation.

On August 24 2011, a presentation was made by the Company to the DMR, outlining how the Company is rectifying these issues of "non-compliance".

The Company advised in its Interim Report for the six months to June 30 - issued on RNS and SENS on August 26, 2011 - that it was engaged in discussions with the DMR. The Interim Report stated: "A request has been made to the DMR to review the Company's current and future Social Labour Requirement commitments so that they reflect the operational reality of a reduced short-term resource base more closely. The reduction in the short term resource base is as result of a number of factors, including AMD, which have impacted the Company and other mining companies in the Witwatersrand basin.

CRG, in its first two years of operations, spent over R18m on various Social and Labour Plan projects as well as recently spending R35m on acquiring the water pumps that would be required to stop the rising water table in the Central Basin, despite having no legal liability to do so. CRG believes that based on the resource base available to it, which has substantially been flooded, it has substantially complied with both the spirit and the intent of the original Social and Labour Plan and furthermore the Minerals and Petroleum Resource Development Act. Furthermore, CRG has made commendable progress in its employment equity and procurement programmes to involve local communities and black-owned entities.

It is important to note that the Company has until September 9 2011 to submit further documentation to the DMR, if it feels that this is necessary. Central Rand Gold is waiting for an official response from the DMR and continues to evaluate its submission and will inform shareholders accordingly.

The Company remains confident of resolving these important issues with the relevant South African authorities and developing the considerable economic resources it has discovered during its short tenure in the Central Rand for the benefit of all stakeholders, including shareholders, local communities and the people of South Africa.

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For further information, please contact:

Central Rand Gold +27 (0) 11 674 2304

Johan du Toit / Patrick Malaza

Evolution Securities Limited +44 (0) 20 7071 4300

Chris Sim / Neil Elliot

Merchantec Capital +27 (0) 11 325 6363

Roger Pitt / Monique Martinez

Buchanan Communications Limited +44 (0) 20 7466 5000

Bobby Morse / James Strong

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

Jenni Newman

September 5, 2011

Johannesburg

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