Lodgement of Court Papers and Gold Production

Lodgement of court papers

There continues to be no resolution to the dispute relating to alleged procedural breaches of the Central Rand Gold South Africa (Proprietary) Limited ("CRGSA") Shareholders' Agreement ("Shareholders Agreement") entered into between Central Rand Gold Netherlands Antilles ("CRGNV") and its current Black Economic Empowerment ("BEE") partner, Puno Gold Investments (Proprietary) Limited ("Puno").

The dispute relates to the shareholder funding provisions of the Shareholders Agreement and the related allocation of intercompany loans which fund the budget and work programme.

In order to suspend protracted litigation, the parties agreed in 2009 to refer the matter to arbitration pursuant to the dispute resolution mechanism under the Shareholders' Agreement. However due to the inaction of Puno in bringing matters before the Arbitration Foundation of South Africa, CRGNV and CRGSA on 25 November 2011, filed an application with the High Court of South Africa ("Application"), following which the papers were served on Puno by the Sheriff of the High Court

This application seeks to discharge the interdict obtained on 13 May 2009 prohibiting CRGSA and CRGNV from proceeding with an option to call for Puno's entire shareholding in CRGSA, and in the alternative requests that a court order be granted appointing an arbitrator to arbitrate on the dispute between the parties and furthermore stipulate the time period within which such arbitration needs to be conducted to completion.

In the event that this application is unopposed, the hearing of the matter will commence on 13 December 2011.

However, in the likely event that a notice of intention to oppose the application be received, the matter will be set down for hearing on the opposed roll, in such event a court date in early 2012 will be allocated for the hearing of the matter.

Gold production

The Company refers its shareholders to the Interim Management Statement released on 18 November 2011 wherein it was stated that gold production for the year up to October 2011 amounted to 12,116 ounces and that the Company expects to produce approximately 1,000 ounces per month for the remainder of the year.

Accordingly, the Company hereby confirms that its annual 2011 gold production is expected to be between 14,000 and 15,000 ounces.

For further information, please contact:

Central Rand Gold +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 +44 (0) 20 7466 5000

Bobby Morse / James Strong

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

Jenni Newman

28 November 2011

Johannesburg

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