INDEPENDENT COMPETENT PERSON'S REPORT

The Company is pleased to announce the completion of a new South African Mining Code compliant Independent Competent Person's Report ("ICPR") undertaken by mineral industry experts, Venmyn Rand Proprietary Limited ("Venmyn"). Three key areas were targeted in this report:

1. To independently adjust the Company's Resource base in line with the rising water table;

2. To re-establish and confirm the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves ("SAMREC Code") compliant Probable Reserves based on conventional South African mining techniques; and

3. To ascribe an independent market related value to the Company based on all of its mineral assets.

·; Adjustment of Resources in line with the rising water table

The Company has embarked on a strategic reassessment of the potential impact of the rising water table on the substantial Resource base the Company currently controls. The Company and Venymn have decided that mineral resources deeper than 450 metres below surface ("mbs") should be considered temporarily inaccessible pending signature of agreements between the South African Department of Water Affairs and Forestry ("DWAF") and South African Government contracted service provider, Trans Caledon Tunnel Authority ("TCTA") allowing for pumping of water below this level. This has the effect of downgrading all Resources below 450 metres in depth to the SAMREC category of Exploration Target. It must be emphasised that the confidence in gold content and continuity remains unchanged and that the category may be restored upon signature of the aforementioned agreements and appropriate capital costing and economic assessments.

SAMREC Compliant Mineral Resources above 450mbs

Note, Rounding may result in minor computational discrepancies

·; Re-establishment and restatement of SAMREC Compliant Mineral Reserves

As set out in the Company's 2011 Annual Report, due to the change in mining technique from mechanised stoping to conventional hand held stoping, which was brought about as a result of excessive dilution and costs, a review of the Company`s Mineral Reserves was required. Prior to December 2011, the Reserve base was estimated at approximately 482,000oz of Probable Reserve. This estimate was based on the now abandoned mechanised long hole stoping method. Reserves were largely defined around two high grade payshoots and tested to depths of around 900mbs at the deepest point.

The new Reserve presented in the ICPR is estimated at approximately 406,900oz of Probable Reserve. Aside from the change in mining method to reflect the methods now employed by the Company, this estimate differs from the former in that it is only defined to a depth of 450mbs and that it incorporates mining of the lower grade area between the two payshoots.

Reserve comparison December 2011 and May 2012

This aforementioned change in estimated Probable Reserve is a significantly positive endorsement of the Company's new strategy and the decision to revert to a more traditional mining method in that, whilst the overall quantum of reserves is lower than that previously established, the declaration depth is considerably less. The February 2012 Resource upgrade which incorporated additional sampling information gleaned from surface trenching, has demonstrated that the area between the two payshoots is of a higher grade than previously believed and has thus become a more viable economic proposition. The Mineral Resource to Mineral Reserve conversion was conducted by Mr M L Mohloki of Mohloki Mining CC ("Mohloki") using actual mining performance and typical Witwatersrand gold mining ratios.

·; Independent Market Related Valuation of Mineral Assets

The approach taken by Venmyn in ascribing a value to the extensive asset base was twofold. The primary method considered all of the Company's SAMREC compliant resources on an area by area 'sum of parts' basis utilising a 'market related ounce value in the ground'.

Valuation of project areas per unit of Mineral Resource

Note: In view of the approach that mineral resources deeper than 450mbs should be considered temporarily inaccessible, for the purposes of this valuation exercise, everything below 450 m is classified as "Resource "Target"

This valuation method is particularly useful in that it allows the Company to realise value for individual areas by adopting customised development strategies. An average market related value of USD202 million is ascribed to the total Mineral asset base of the Company.

The declaration of Mineral Reserves through the undertaking of an appropriate Pre-Feasibility Study has allowed for a further valuation approach to be undertaken. A Discounted Cashflow ("DCF") Analysis and Net Present Value ("NPV") determination was also undertaken by Venmyn on the Consolidated Main Reef West Main Reef mining operation ("CMRW").

As an addendum to the ICPR, Venmyn has also undertaken a production scenario analysis in respect of CMR West to gauge the impact of changing production rates and staged capital deployment. These scenarios have been completed using an externally funded, partially externally funded and self funded basis representing the different approaches available to the Company. The approach the Company will ultimately pursue will depend on prevailing market and economic conditions at the time of capital requirement. The funding scenarios return NPVs of ZAR934 million (USD117 million), ZAR658 million (USD82 million) and ZAR344million (USD43 million) respectively, with an externally funded approach indicating an overall greater return. The externally funded model forms the base case represented in the ICPR.

The following information will be available on the Company's website www.centralrandgold.com

·; A synopsis ICPR report;

·; The Full ICPR report;

·; Short form ICPR report for CMRW; and

·; Addendum: Assessing of differing valuation scenarios for CMRW.

 Note: The information in this statement relating to Mineral Resources and geology has been reviewed and approved by Mr Keith Matier, BSc (Hons), GDE, Pr Sci Nat, who is a competent person in terms of the SAMREC and JORC codes. Mr Matier is the Geology Manager of Central Rand Gold South Africa Proprietary Limited and has over 18 years' experience in precious metal exploration, mineral resource management and evaluation.

For further information please contact:

12 June 2012

 Johannesburg

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