Interim Management Statement

·; Probable Reserves increased by 312,800 ounces ("oz") to 719,700 oz;

·; Independent Competent Person's Report ("CPR")completed for CMR East, increasing the value of the Company by $70 million;

·; Underground production achieves target of 12,000 tonnes per month ("tpm");

·; 200,000 tonnes of additional underground ore identified, which can be accessed through minimal on-reef development;

·; Underground mine call factor at 57% for third quarter sulphide transition, which is below the long term target of 85%. October 2012 mine call factor at 70% shows steady improvement. Strategies are in place to further reduce gold losses;

·; Low gold production of 2,600 oz for the quarter, due to low metallurgical recovery in July 2012 and mill stoppages in August 2012 primarily as a result of the transition from processing of oxide to sulphide ore;

·; Metallurgical plant has been modified to accept 100% hard underground sulphide material with capacity to achieve similar high tonnage throughputs to that seen with the soft oxide feed that characterised the first six months of 2012;

·; The Company expects full year gold production to be similar to the prior year figure of between 14,000 oz and 15,000 oz;

·; Approval given by the South African Department of Water Affairs to Trans Caledon Tunnel Authority ("TCTA") to commence construction of the High Density plant in the Central Basin to stop current rise in the water table. The agreement between Central Rand Gold and TCTA, which will allow Central Rand Gold to dewater the Central Basin below the Environmental Critical Level ("ECL") - which is approximately 225 metresbelow surface ("mbs"), at Central Rand Gold mining operations, will be signed before the end of November 2012; and

·; Awaiting court date to commence the resolution of BEE dispute.

2. Operational update

2.1. CMR East Reserve Conversion and Competent Person's Report

Following from the successful reserve conversion of Main Reef resources underlying the CMR West mining area, a further pre-feasibility study was undertaken during the third quarter of 2012 focussing on the adjacent CMR East area.

Whilst the Main Reef underlying the CMR East is somewhat lower in grade relative to the current CMR West operation, the results of the economic study are positive and allow for a higher tonnage and longer operating life of the combined CMR mine.

Venmyn Rand Proprietary Limited, the authors of the March 2012 Competent Persons Report (published on the Company's website in June 2012), were again requested to independently review and ratify the Reserve study and further to place an independent monetary value on the impact of the additional Reserves on the combined operation.

The Company is pleased to announce that the inclusion of the CMR East area has increased the Company's Probable Reserves by 312,800 oz to a combined total of 719,700 oz which, in the process, has added a further $70 million to the Preferred Value of the combined mining operation.

These published reserves are fully compliant with the South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves ("SAMREC Code").

The Reserve update is based on a combined mining operation designed to exploit the Main Reef underlying the CMR area to a depth of 450m below surface. The underground portal, ventilation and general infrastructure established for the CMR West operation will be sufficient to support the combined operation.

The additional tonnage generated through the simultaneous extraction of CMR East and West reserves will however require a more significant processing plant upgrade that previously planned.

A combined capital cost of approximately $33 million has been budgeted which will allow for the expansion of the processing plant and further infrastructure as well as allow for sufficient capital development to access underground reserves.

The additional reserves identified in the CMR East area have the following benefits:

·; The combined operation builds up to a maximum steady state production rate of between 70,000 oz to 80,000 oz per annum, an increase of 33% from the original CMR WEST study;

·; The overall life of mine is extended to 2024; and

·; The CMR Main Reef project area Net Present Value is increased from $117 million to $245 million.

The CPR also included an update from the March 2012 CPR of the asset value of the CMR Main Reef. This valuation is fully compliant with the South African Code for the Reporting of Mineral Asset Valuation (SAMVAL Code.)

As with the previous CPR, the valuation was undertaken using two separate methodologies, and the average of the two then accepted as the "preferred value". It is important to stress that this current valuation only considers the CMR project area's Main Reef resource to a depth of 450m. It does not include Main Reef Leader, White Reef or Kimberly Reef resources.

The full Competent Person's Report is available on the Company's web site www.centralrandgold.com.

2.2 Additional Open Pit Target Areas

The Company is pleased to announce the identification of an additional open pit target area situated within a three kilometre radius of the existing operation.

This area, known as the AVON project, sits within the Langlaagte/Crown West portion of the existing mining right. Thirty six trenches spaced approximately 50m apart were mechanically excavated to a depth of approximately 5m, exposing both the Main Reef Leader and Main Reef horizons. These trenches were then geologically mapped and systematically channel sampled and finally assayed for gold.

The results of assaying the trench samples have allowed for the identification of potentially economically mineable areas, the results of which are compiled and tabulated below.

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 and it is uncertain if further exploration will result in the definition of a Resource.

Further exploration work, which includes trial mining and processing of this shallow target to establish grade and orebody continuity, mineability, dilution and throughput characteristics, is ongoing.

2.3 Mining

2.3.1 Underground Mining

Quarterly underground production results

Using conventional hand held stoping methodology, 34,205 tonnes of ore was mined in the third quarter, which was largely in line with the Company's production targets. Based on variable hanging wall conditions, the Company decided to increase its underground support methodology by including 75cm by 75cm timber packs as the standard stope support requirement in order to increase area coverage of the hanging-wall, thereby minimising the possibility of ground failure and improving the safety of employees on the face.

Current production performance has given the Company confidence to increase its underground production target to 14,000 tpm during the fourth quarter of 2012.

The Company estimates that it still has approximately 347,000 tonnes of in-situ ore available that can be accessed requiring only minimal on-reef development.

2.3.2 Surface Mining

Open pit production situated at Slot 8, being the New Unified Pit and Spencer Pit, were stopped in August 2012 as these pits were getting deeper and the ore-bearing body becoming harder. This resulted in the pits becoming un-economical and surface operations in the area were subsequently ceased.

Rehabilitation of the open pits continues, with almost $200,000 spent during the quarter, as part of restoration of the area to its previous state and also the reduction of Central Rand Gold's surface rehabilitation liability.

Quarterly surface mining production results

2.3.3 Gold mining efficiency and Mine Call Factor

The commencement of treatment and processing of large quantities of underground ore in the third quarter has allowed the Company, for the first time, to assess the Mine Call Factor ("MCF") attributed to the underground mining operation.

The MCF measures the incurred unplanned dilution and gold losses experienced from the mining face to the gold plant. In short, it can be described as a measure of gold expected (less metallurgical efficiency) against gold actually delivered.

The MCF for the third quarter was measured at approximately 57%, resulting in a lower than planned (2.50g/t) milled head grade of 2.15g/t. The Company's has a long term target MCF of 85%. Three main factors have been identified as contributors to this gold loss:

- Fine gold lost during blasting operations as gold particles liberated from the insitu conglomerate matrix and through the normal course of mine cleaning;

- Dilution from historical hanging-wall beams reporting to the reef stockpile;

- Losses of fine gold further liberated from conglomerate matrix within the surface crushing process prior to the material entering the gold plant.

It is important to note that with the exception of dilution from the hanging-wall, the gold is not necessarily completely lost but rather its final recovery is deferred to later stage clean-up and vamping cycles.

The aforementioned factors are not unique to the Central Rand Gold operation and are common in all South African gold operations. They arise from the specific nature and deportment of gold within the Witwatersrand reefs.

Gold losses in each of these areas have been addressed as follows:

- Regular monthly draw point and sump clean-ups are now undertaken;

- Strict dilution control has been established with aggressive waste sorting both underground and on surface taking place;

- The crushing process has been adjusted to remove several of the handling stages with longer term plans to fully automate the crushing process. Stockpile Run of Mine pad clean-ups are planned on a quarterly basis to recover liberated fine gold.

It is anticipated that these measures will improve the underground MCF beyond its long term sustainable target of 85%. This is further evidenced by the MCF increasing to 70% for the October month.

2.4 Metallurgy

2.4.1 Metallurgical Situation Report

The third quarter of 2012 represented a critical juncture for the Company. Since inception, the Company has mined and processed predominantly soft low grade oxide ore obtained from various free digging open pit operations.

The longer term goal of the Company, however, has always been to mine and process the harder, higher grade sulphide ore sourced from its underground operations. Until recently, the Company has not been in a position to process this underground ore in any appreciable quantity due to hard rock crushing limitations and has relied mainly on costly external tolling arrangements to monetise this production.

Towards the end of the second quarter of 2012, the oxide reef that provided such an important source of economic ore became exhausted because the pits reached depths where harder sulphide ore prevented free digging operations.

The existing crusher train was successfully upgraded in May 2012 to allow for fine crushing of hard sulphide ore as primary mill feedstock, with the first 100% sulphide feed being introduced to the milling and leach circuits in July 2012.

As previously reported, internal production in July 2012 was negatively impacted by modifications required to transition the metallurgical plant to process predominately the harder sulphide ore. Further production loss was incurred in August 2012 due to unplanned maintenance being required for both production mills, which resulted in the Metallurgical plant being shut down for a four week period. Both mills were back to full production at the end of the first week of September 2012.

Toll treatment of sulphide ore during August 2012 was accelerated to make up for the production downtime. The process plant was brought back online at the end of August 2012, fully equipped and ready to process up to 100% sulphide feed at similar high tonnage throughputs to that seen with the soft oxide feed that characterised the first six months of 2012 to between 17,000 and 20,000 tpm. Management believe that the plant is now correctly configured to efficiently process all types of material mined by the Company and September 2012 saw a dramatic increase in grade, gold recovery and tonnage throughput.

Internally processed tonnage reduced by 4% from 56,086 tonnes processed in the second quarter to 31,141 tonnes in the third quarter. As a result, internal gold production during the third quarter dropped by 53% from 3,045 oz to 1,437 oz.

2.5 Financial Update

Cash and cash equivalents at 30 September 2012 are reported at US$4.5 million compared to US$6.4 million at end June 2012.

Higher than anticipated cash burn during the three-month period ended September 2012 is mainly attributed to lost production during the process plant repair and upgrade during July/August 2012, increased underground support costs, lower surface grades and higher toll treatment costs.

These adverse factors were mitigated by stronger realised average Rand gold prices and reduced head office overheads.

As a result of low gold production in the third quarter, cash operating cost per oz increased to US$2,585/oz in comparison to US$1,185 in the first half of June 2012. Year to date September 2012 cash operating costs averaged at US$1,514/oz. The Company's year to date all-in cash operating cost per oz has increased to US$1,889/oz. This is an increase from the first half of the year's performance of US$1,563/oz.

As a result of improvement initiatives being implemented on underground grade protection, increased plant capacity, newly opened surface resources and increased capability to process hard rock sulphides, the Company expects full year gold production to be similar to the prior year's figure of 14,856 oz.

2.6 Acid Mine Drainage

All terms within the memorandum of agreement have been accepted by Central Rand Gold and TCTA, and will be signed before end November 2012. This agreement will see Central Rand Gold contributing the Ritz pumps, acquired in 2010, in the form of a donation, towards the AMD project. This contribution will allow Central Rand Gold to de-water the Central Basin below ECL, at the incremental operational cost.

On 16 October 2012, the South African Department of Water Affairs announced that TCTA had been given the authority to award the contract for the construction of the new High Density Sludge Plant for the Central Basin. Construction is expected to take around 10 months to complete. The rate of rise in the Central Basin has remained constant at around 0.3 metres per day. It is currently anticipated that ECL will be breached in September 2013.

2.7 South African mining industry labour disputes

The Company has noted the recent unrest and labour disputes within the South African mining industry as a whole and has been fortunate not to experience similar unrest in its operations. Nonetheless, the Company will maintain a close watch on further developments in the industry and intends to implement all reasonable mitigating measures that may be put in place to reduce the likelihood of similar disturbances being experienced at its operations.

2.8 Arbitration Proceedings

The Company and Puno Gold Investments Proprietary Limited ("Puno") have jointly approached the Deputy Judge President of the South Gauteng Division of the High Court of South Africa in order for a Court date to be confirmed to commence the resolution of the dispute between the Company and Puno. Details of this date have yet to be confirmed and shareholders will be kept informed of developments.

2.9 Goldplat exploration activities

Due diligence is continuing based on an agreement with Goldplat Recovery Proprietary Limited ("Goldplat") of two of the shallow shafts at the Crown East and CMR Bird Reef mines. Goldplat has confirmed that it will no longer pursue the CMR Bird Reef as this area is at shallow levels and not economically viable. All attention has now moved to the Crown East area, where Goldplat continues to establish an on surface access that will provide access to the main reef and main reef leader Reserves. Progress is slower than originally anticipated due to poor ground conditions at shallow depths.

2.10 Prospecting and Mining Rights

Central Rand Gold was recently informed that the application for extension of its AngloGold prospecting right was not received on time and has therefore lapsed. The AngloGold prospecting right is not a material component of the Company's prospecting area, as the resource only starts at around 700 mbs and the area does not, at this stage, have any reportable resources in the Company's resource table. The South African Department of Mineral Resources has, however, informed the Company that it would be entitled to make application for a new prospecting right over this area. This will give the Company an additional five years to prospect over this area.

The Company has received legal opinion on this matter as it believes it has sufficient evidence that a submission was made within the required timeframe. The Company has reserved its legal rights, but has decided to take the advantage of the additional timeframe afforded by a new prospecting right.

Further feedback has been received from the DMR that the City Deep area has been included in the Mining Right granted to Ferreira Estate and Investment Company Limited, a subsidiary of the South African operating subsidiary, CRGSA. The Company is pleased to finally receive this confirmation and will shortly commence with operations in this area.

2.11 Final Quarter 2012 outlook

The third quarter performance was negatively impacted by the plant break down and a disappointing MCF resulting in a lower than planned head grade of 2.15g/t. This largely contributed towards the high cost per oz and negative cash movement for the quarter, which the Company recognises is unsustainable.

The objective for the Company during the fourth quarter is to protect and restore the Company's cash position. The focus will be on ensuring improved metallurgical plant availability, a higher MCF to enable the Company to achieve an average milled head grade of 2.5g/t and achieving its mine production targets.

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 +44 (0) 20 7466 5000

Bobby Morse / Louise Mason

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

Proprietary Limited

Jenni Newman

Note: The information in this statement relating to Mineral Resources and geology has been reviewed and approved by Mr 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 19 years' experience in precious metal exploration, mineral resource management and evaluation.

12 November 2012

Johannesburg

JSE Sponsor

Merchantec Capital