Interim Management Statement

For immediate release 19 May 2010

Central Rand Gold Limited

("CRG" 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

Interim Management Statement

Highlights

·; Metallurgical plant upgrade and optimisation completed

·;  Decline development952m from portal

·; Second decline two months ahead

·; Additional surface exploration target identified.

·; US$11.2 million cash balance at the end of March 2010

·; Progress towards further equity fund raising on track

Operational Update

Mining

Decline development within the high grade eastern payshoot is now 155m below surface and advanced an estimated 952m. The second decline development targeting the high grade western payshoot has started two months ahead of schedule and has already advanced 85m and is 153mbs. A total of 271m of reef development has been completed to date.

Both mining and processing personnel have now converted to a continuous 12-hour shift roster. This change in shift hours is expected to significantly improve efficiencies and reduce costs compared to the previous 8-hour shift cycle

Metallurgy

A number of initiatives were implemented on the Metallurgical plant to improve recovery and production. This was undertaken mainly during March 2010 when the plant was shut down while the necessary changes were made.

The steady feed into the Bateman concentrator was resolved by implementing a live stockpile with withdrawal tunnel underneath to enable a controlled vibrating feeder to consistently feed the optimal tonnage into the crushing circuit and eliminate the lumpy feed issues to date. This has improved throughput in the Bateman plant.

The CIL plant has been successfully converted into an increased capacity CIP plant by the addition of a 150 cubic metres pre-leach tank with a shear reactor to increase effective retention time and improve dissolved oxygen levels that are critical to the leach process. Improved direct feed arrangements into the CIP plant have also enabled a step increase in throughput through the circuit and already a steady state 13 500 tpm has been achieved at current mining rates.

We are currently processing the oxide material from open pits through the plant while the underground development opens up new stoping areas for sulphide ore scheduled for the latter part of 2010.

From a production perspective the Bateman concentrator is achieving an excellent recovery on the oxide material, however, throughput and availability is still being optimised.

The CIP has been performing very well to forecast and is achieving both expected recovery and throughput on the oxide material. Availability has since start up in March exceeded forecast.

During processing of underground sulphide material we achieved consistent tail grades of around 0.2g/t on both the flotation plant and leach circuit which are confirming the expected recoveries once steady state sulphide production is underway later this year.

The gold produced for year to date is 2 312 oz to 10 May 2010. This includes both bullion smelted on site and loaded carbon sent to Rand Refinery for processing.

Exploration

The Company has put in place several strategies to leverage off the current high gold price and provide additional ore material to ensure that the process plant continues to operate to capacity during the ramp up to underground stope production.

Current Expansion of Open Pit Operations

The company has recently secured permission to extend open pit operations, approximately one kilometre from the process plant. Three open pits are envisaged for this area providing approximately four months of production. The highly weathered nature of the Main Reef, Middling and Main Reef Leader material targeted by the company allows for extraction through free mechanical digging to depths of around 20m. The pits will be rehabilitated concurrently with mining.

An estimated "Exploration Target" of between 30 000t and 40 000t at a grade of between 2.8 g/t and 3.2 g/t has been identified to depths not exceeding 20m.

The new open pit operations in the New Unified Area are close to the existing Process Plant at CMR.

Optimisation Studies underway for New Pits

Systematic mechanical trenching and geological mapping and sampling has identified significant open pit "Exploration Target" potential in the "White Reef, approximately two kilometres from the processing plant. Current work has suggested that unlike the free digging Main Reef material in the immediate vicinity of the plant, limited drilling and blasting may be required. The White Reef is particularly well suited to open pit operations in that up to four gold bearing units are present in widths of up to 2.5m.

Trench results are tabulated below:

An estimated "Exploration Target" of between 190,000t and 210,000t at an approximate grade of around 2.1 g/t has been discovered to date.

Footnote:

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 is ongoing, and includes trial mining and processing of this shallow target to establish grade and ore body continuity, mineability, dilution and throughput characteristics.

Cash Position

As at the end of March 2010, the Company had approximately US$11.2 million on hand. Set out below is an abridged cash flow statement.

Capital Raising

As indicated in the Chairman's Report of Annual Report 2009 , it is envisaged that additional equity finance of at least US$35 million will be sought to fund the Company's mine development plan and provide the platform for sustainable gold production going forward.

Black Economic Empowerment

At the hearing of the interdict applications on 5 November 2009, the Court dismissed Puno's request for an urgent interdict to halt CRG's trial mining activities and made a costs order against Puno to pay the costs incurred by the CRG Group in opposing the application. Puno subsequently appealed and on 1 April 2010, the Court rejected Puno application for leave to appeal the decision handed down by the South Gauteng High Court. The arbitration procedures are continuing with Puno Gold Investments (Pty) Ltd. It is expected that the arbitration proceedings will be completed within 2010.

For further information, please contact:

Johan du Toit +27 (0) 11 551 4000

Patrick Malaza +27 (0) 11 551 4000

Enquiries:

Evolution Securities Limited +44 (0) 20 7071 4300

Simon Edwards / Chris Sim / Neil Elliot

Macquarie First South Advisers (Pty) Ltd +27 (0) 11 583 7000

Annerie Britz / Melanie de Nysschen

Buchanan Communications Limited +44 (0) 20 7466 5000

Bobby Morse / Katharine Sutton / James Strong

Jenni Newman Public Relations (Pty) Ltd +27 (0) 11 772 1033

Jenni Newman / Megann Outram