Facility Agreement

Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining

17 August 2010

Central African Gold Plc ('CAG' or 'the Company')

Facility Agreement

Central African Gold Plc, the AIM quoted gold mining and exploration company, is pleased to announce that, on 12 August 2010, it entered into a loan facility agreement with its major shareholder, New Dawn Mining Corp. ('NDM') ('the Facility Agreement'), to provide CAG with up to US$2.0 million to support its Zimbabwean mining operations.

The funds made available under the terms of the Facility Agreement will be made available to both Falcon Gold Zimbabwe Limited (84.7 per cent. owned by CAG) and to Olympus Gold Mines Limited (100 per cent. owned by CAG) to support both subsidiaries' ongoing operational and working capital requirements.

The Facility Agreement does not have a maturity date and is repayable on demand.

As NDM is a substantial shareholder in the Company, the Facility Agreement is classified as a related party transaction in accordance with the AIM Rules. Accordingly, the independent director, being Roy Pitchford, having consulted with Strand Hanson Limited ('Strand Hanson'), the Company's nominated adviser, considers the terms of the Facility Agreement to be fair and reasonable insofar as the Company's shareholders are concerned. In providing its advice, Strand Hanson has taken into account the independent director's commercial assessments.

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For further information please visit www.centralafricangold.comor contact:

Notes to Editors

CAG

Central African Gold Plc is a gold mining company with a portfolio of production, development and exploration assets primarily in Zimbabwe, where the Company operates through two subsidiaries, Falcon Gold Zimbabwe Limited (84.7 per cent. owned) and Olympus Gold Mines Limited (100 per cent. owned). Through these subsidiaries CAG has four main gold mines, the Dalny, Old Nic, Golden Quarry and Camperdown mines, which arelocated in the highly prospective Kadoma, Shurugwi and Bulawayo gold regions in Zimbabwe.

NDM

The Company's 88.68% shareholder is TSX listed New Dawn Mining Corp. a gold company with a broad portfolio of production and exploration assets also in Zimbabwe. NDM owns and operates the Turk and Angelus Mines in the upper southwest area of Zimbabwe which it believes have the potential to produce an estimated 35,000 to 50,000 ounces of gold per annum. It is NDM's objective to orchestrate the development of CAG's mining operations and exploration portfolio, as well as its own, to become a mid-tier gold producer focussed in Zimbabwe, with a consolidated annualised gold production to between 50,000 and 60,000 ounces within the next 18 to 24 months, increasing to 100,000 ounces by 2014, and then ultimately to 200,000 to 250,000 ounces.