Interim Results

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

2011 Interim Report

Central Rand Gold, the South African gold mining and exploration holding company, today announces its Interim Results for the six months ended 30 June 2011. The full set of results is available on the Company's website: www.centralrandgold.com

For further information, please contact:

CRG +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 / Katharine Sutton / James Strong

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

Jenni Newman

24 August 2010

Johannesburg

JSE Sponsor

Merchantec Capital

Chief Executive Officer's Review

Salient features of this report

• Suspension of underground mining development due to continuing Acid Mine Drainage ("AMD") uncertainty and discovery of "composite voids" in the initial shallow areas.

• Surface mining to continue until the end of September 2011.

• Gold production up 133% to 7,189 ounces.

• Trial conventional mining exercise underway.

• Draft water solution awaiting final Government approval.

• The implementation of a retrenchment programme to reduce staff numbers by 160 in line with reduced mining activity.

• Cash and near cash resources at 30 June 2011 of US$4.8 million.

Overview

The first half of 2011, being the period under review, turned out to be a watershed period for Central Rand Gold.

The continuing AMD in the Central Basin has become a major risk factor and an operational impediment for the Company, prompting the decision to indefinitely suspend underground mining operations with effect from 25 May 2011.

As a result of the uncertainty facing the Company, the size of the workforce has had to be substantially reduced, thus prompting the implementation of a retrenchment programme with effect from 15 July 2011. As a result of this programme, which adheres to relevant labour law policies and procedures, about 159 staff members, of the current total head count of 218, will leave the Company's employment between July and September 2011.

Although July 2011 was indeed a sad moment in the Company's history to have to say goodbye to valuable staff members, the retrenchments were necessary in light of the Company's need to preserve capital while assessing its options regarding the future.

During the third quarter of 2011, the Company will continue to review all operations and activities to accurately assess its future strategic options.

Water

On 29 March 2011, the Company reported that some progress and commitment had been made by the South

African Government towards addressing the AMD situation (including the allocation by the National Treasury of R225 million (US$32 million) to the Department of Water Affairs to finance a solution). Nevertheless, with the water table gradually rising towards the 250 metres below surface ("mbs") level, the Board of Directors of CRG ("the Board") deemed it prudent to discontinue underground mine development, at least until action has been taken to resolve the problem. If the water is stopped at 250 mbs, approximately 90% of the Company's resource base will be under water. The water level as at the end of July 2011 was measured at 425 mbs at South West Vertical, rising at approximately 0.3 metres per day.

On 29 March 2011, the Company also announced that the submersible pumps ordered by the Company at a cost of €3.5 million (R34.4 million or US$5.0 million) would be capable of pumping approximately 72 million litres of water per day, more than the expected water ingress of around 55 million litres per day. As part of a quality control plan, the two pumps were individually tested on 20 July and 22 July 2011, respectively, in a special testing bay at the manufacturer's factory in Schwabisch Gmund in Germany, to ensure conformance to specifications. Representatives from Central Rand Gold as well as the Trans-Caledon Tunnel Authority ("TCTA") (the appointed project managers by the Department of Water Affairs) and BKS (consultant to TCTA) were present. In the event that these pumps are not utilised for the intended purpose, they will be sold.

The Board believes CRG has done as much as it possibly can to contribute towards finding a workable solution to

the AMD problem, and continues to participate in industry lobbying which has included making presentations to a

parliamentary subcommittee in Cape Town. Additional feedback from the Department of Water Affairs is still being awaited.

TCTA has been tasked with project management of the AMD situation and the implementation of a solution that will benefit the mining industry and other stakeholders in the Central Basin area. At the time that this report was being written, TCTA had presented to the Company a draft proposal on the implementation of a workable and sustainable solution. However, this proposal still requires Governmental approval.

Geology

Resources and Reserves

During the period under review, the Company discovered that approximately 30% of its proposed stoping area,

between 120 and 180 mbs, consisted of composite double voids. Composite double voids represent areas where the Main Reef Leader, middling and the Main Reef have been historically extracted as a single unit.

A statistical analysis study on the occurrence and distribution of composite double voids is underway, and it appears that the prediction of both the location and the frequency of these areas of previous mining activity is possible. The existence of the composite double voids do not appear to be a pervasive situation and is thought only to occur where the middling is relatively thin and mineralised, and the gold grade of total composite package is sufficiently high. The impact of the composite double voids on the resource and reserves is expected to be localised and relatively minor.

Once the aforementioned study has been completed, a full analysis thereof will be incorporated into the Company's

Resource model and a comprehensive update of the Main Reef Resource base is envisaged. A future review and rework of the Main Reef Reserves to incorporate potential conventional mining currently being tested, is also anticipated to take this statistical model into account.

Resources are quoted inclusive of Reserves.

Note: Reserves have not yet been depleted as a result of mining operations, as almost all mining to date has taken place above 70 mbs, that being limited to surface mining which was not part of the quoted Reserve. The limited

underground mining that has taken place to date is not significant enough to warrant the restatement of figures. Unplanned composite double voids will be incorporated into future Resource and Reserve estimates once their full extent is understood.

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. 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.

Underground mining

As a result of the AMD and the occurrence of composite double voids - and with a view to conserving cash reserves - the Company suspended underground mining development operations with effect from 25 May 2011, at 205 mbs. The Company continued with underground long-hole stoping operations until the end of June 2011.

1 Development grades are based on block estimates.

Dilution and grade control

Dilution from delaminated hanging wall waste, resulting from the use of long-hole stoping, has continued to be a

problem with up to two metres of barren quartzite diluting the targeted Main Reef ore. This has had the overall effect of reducing the head-grade, and in some instances to below 1.9 g/t, which has a significant negative impact on project economics. To address the problem, a surface waste sorting programme has been implemented involving both hand sorting and the use of the Commodas Optical Sorter, in an attempt to remove dilutive material from the underground ore stockpiles.

The impact of this dilution has necessitated the suspension of long-hole stoping as the primary mining method and it is believed that conventional mining trials, currently being tested, will allow for better on-face grade control, selectivity and a dramatic reduction in hanging-wall dilution.

Surface mining

Importantly, in comparison to 2010, more surface tonnes have been mined at a slightly higher grade than expected.

There has also been a slight increase in the stripping ratio as a result of deepening pits. At the end of June 2011, three pits were active - New Unified Pit, Spencer Pit and Central Pit - all of which are expected to be exhausted by the end of September 2011 at a planned output rate of 15,000 reef tonnes per month.

Metallurgy

During the period under review, the Bateman concentrator processed 37,479 tonnes of Main Reef ore at an average feed grade of 2.05 g/t. The feed material was largely made up of friable surface oxides mixed with a smaller proportion of hard siliceous underground sulphide ore. Bateman floatation recovery for the period improved substantially from approximately 63%, to approximately 77%, generating 6,590 tonnes of concentrate running at 8.9 g/t. Bateman plant availability dropped from 70% to 60%, largely due to a significantly higher proportion of harder sulphide feed.

The Carbon-in-Pulp ("CIP") plant performance also improved markedly during the period under review with 61,109 tonnes of surface oxide ore, running at an average grade of 2.74 g/t, being fed directly to the CIP plant. This was supplemented by the addition of the 6,590 tonnes of Bateman concentrate. Gold recovery improved from 86% to approximately 90% and the CIP availability increased from 86% to 90% during the period under review.

In March and April 2011, approximately 12,000 tonnes of oxide ore, at an average grade of 2.6 g/t, was dispatched to Mintails, the neighbouring gold processing company, with a view to testing the economics of toll treatment of surplus ore in excess of current processing capacity. The exercise was profitable and demonstrated the economic merit of pursuing this arrangement when surplus ore production occurs.

In June 2011, a further toll treatment exercise was initiated to investigate the merits of treating high grade residue tailings generated during the initial commissioning phase of the Gekko concentrating plant. By 30 June 2011, approximately 19,159 tonnes, at an average grade of 1.39 g/t, had been dispatched to Mintails for processing.

Gold production for the first half of 2011 was 7,189 ounces, an increase of 133% from the comparable period in 2010.

Keith Matier, Head of Geology, took over responsibility for the Company's metallurgical processing operations from Riccardo Tonini, who resigned from the Company at the end of May 2011.

Trial conventional mining

An important new development for CRG is the trialing of conventional mining until the end of September 2011. The mining contractor, Sekgwa Mining Services (Proprietary) Limited, has been engaged to undertake conventional trial mining in the Company's current mining area to verify whether or not conventional hand-held, in-stope drilling can be undertaken safely, economically and without major dilution. Improvement of grade selectivity will also be a factor in this trial mining exercise.

The expectation is that the minimisation of blasting vibrations under the conventional mining method will reduce blasting-induced falls of ground and therefore minimise dilution. The other expectation is that shorter rounds of drilling will make mining more flexible to introduce resue mining where the middling is of significant enough width to be blasted separately.

Broad-based black economic empowerment

Central Rand Gold remains in dispute with its broad-based black economic empowerment partner, Puno Gold Investments (Proprietary) Ltd. The matter is currently pending the commencement of arbitration and it is hoped that a resolution will be reached in the near future.

DMR review

Based on its resource base, Central Rand Gold made certain Social and Labour Plan ("SLP") commitments in its original New Order Mining Right application. Between 2009 and the end of 2010, the Company invested R18 million (US$2.6 million) in community related projects and initiatives to the benefit of community members.

It is anticipated that if the water table is stopped at 250 mbs, approximately 90% of the resource base included in its mining right will be under water. This resource can therefore only be accessed, once a de-watering programme has commenced. A request has been made to the DMR to review the Company's current and future SLP commitments, so that it reflects the operational reality of a reduced short-term resource base more closely.

Financial review

Operating loss for the period under review decreased by 17% to US$14.4 million (30 June 2010: US$17.4 million). This decrease is mainly attributed to:

• Revenue from the sale of 7,189 ounces of gold (June 2010: 3,085 ounces) processed from shallow surface materials.

• Proceeds from the sale of the Gekko 50 tonne per hour processing plant of US$5 million.

• Provision for retrenchment of 160 support and operational staff (June 2010: 46 head count).

Net attributable loss for the period under review decreased by 14.6% to US$14.8 million (30 June 2010: US$17.3 million) after taking into account the lower interest received, transactional foreign exchange losses on the back of a stronger Rand/US$ exchange rate and lower cash balances.

At the end of June 2011, the net cash position of the Company was reported at approximately US$4.8 million (30 June 2010: US$4 million) and at the end of July 2011 the balance amounted to US$4.0 million.

Major cash flows during the period under review are set out in the abridged cash flow below:

Conclusion

Without doubt, the second half of 2011 will be a critical period in determining the future of Central Rand Gold. Future prospects are dependent on how the Company resolves the following three major uncertainties:

1. Stopping the rising water table.

2. Getting a better understanding and confirmation of the ability to predict the occurrence of composite double voids.

3. Confirmation of the viability of conventional mining.

Given resolution and progress on the above-listed uncertainties, the Company expects to be able to reassess its prospects by the end of October 2011. As reported in the 2010 Annual Report, part of this reassessment will be the question of further funding and the possibility of other corporate actions taking place. In the meantime, the Company's remaining staff will do their utmost to maximise productivity from nearby surface deposits and opened underground stopes, testing the conventional mining option and keeping operations as efficient, safe and cost effective as possible.

Johan du Toit

Chief Executive Officer

The information in this statement relating to Mineral Resources and geology has been reviewed and approved by

Mr Keith Matier, BSc (Hons), G D E, Pr Sci Nat, who is a Competent Person in terms of the SAMREC and JORC codes. Mr Matier is Geology Manager of CRGSA and has over 17 years' experience in exploration, mineral resource management and mineral evaluation.