OPERATIONAL UPDATE

Central Rand Gold today provides an update detailing significant events that occurred during the first four months of 2013, expanding on detail provided in the Operational Update of 29 April 2013.

Mining Operations

Overall, mining operations have progressed well with total mining production of 83,597 tonnes against a target of 83,604 tonnes. The overall mined grade was, at 3.25g/t, slightly lower than in 2012 where 3.92g/t was achieved. The drop in grade is not seen as permanent and the grade will continue to fluctuate depending on the specific mining area. This is not unusual in mining operations and the Company remains confident that the overall Resource grade of 3.57g/t is achievable over the life of the mine. Further development during the first quarter of the year has opened up additional mining fronts, providing the Company with greater mining optionality and flexibility.

Mine Call Factor

The Mine Call Factor ("MCF") continued to show steady improvement throughout the first four months of 2013 with operations in the month of April retaining a solid 74% of gold from working face to gold pour. Current indications are that May will mirror this trend and even exceed the April figure. This improved MCF has been brought about by continuous improvements in the stockpile management and ore handling philosophy as well as in adjustments to the blasting and sorting routines required when handling the thin channel high grade ore which has became a feature of production since late February 2013.

Production results

As previously reported the challenges experienced due to the availability of the Bateman Mill continued through January and February and again in April (albeit to a much lesser extent). Gearbox modifications were again undertaken in April and in early May in an attempt to improve reliability of this mill. The mill is now running well on a single gearbox and currently offering availability in excess of 80%. Whilst this is encouraging, availability and general performance will be closely monitored and assessed. The Company is also investigating the procurement of a second 9 x 12' ball mill to serve as a backup and potential replacement for the Bateman Mill.

The Carbon in Leach ("CIL") 9 x 12' mill continued to perform well during the four month period with an average availability approaching and ultimately exceeding 90%. Low availability during January was due to a planned swap around of a pinion gear which overran the scheduled timeframe due to unforeseen complications.

Gold production increased to 1,205 ounces in April as a result of a relatively stronger performance by the process plant and a significant step up in tolling tempo.

Grades showed a steady increase as the improved waste sorting techniques were adopted to cope with thin but high grade reef production. This trend has continued through May with indications of belt grades in the mid 2g/t range.

Potential Restructuring

The strategic review with respect to potential retrenchments in terms of Section 189 of the Labour Relations Act 66 of 1995 has been suspended.

This has been brought about following a reassessment of the capital cost required to meaningfully increase both the availability and capacity of the gold process plant beyond the current capacity.

The introduction of a high capacity crushing circuit is to be effected in July, coupled with the option of adding an additional 9 x 12' mill to complement the current milling arrangement. This will significantly reduce the unit operating cost of the mine to well below commercial tolling rates, whilst offering far superior plant availability.

Update on Legal Proceedings with Puno Gold Investments Proprietary Limited ("Puno")

On 27 November 2012, the Deputy Judge President issued a directive letter to the both Puno and Central Rand Gold setting out certain requirements for the further prosecution of the matter, including but not limited to the date upon which Puno was required to serve and file its heads of argument, namely on 15 April 2013.

On or about 10 April 2013, four days before the 15 April 2013 deadline set by the Deputy Judge President, Puno chose to terminate the mandate of its then attorneys of record. This was followed on 12 April 2013 by a request to the office of the Deputy Judge President seeking an indulgence for the late filing of Puno's heads of argument, on Friday, 19 April 2013.

On 19 April 2013 and again on 25 April 2013, Puno filed further affidavits introducing new defences, factual content and additional new information. Despite wanting to avoid a delay and initially expressing their endeavour to reply before the hearing, the Company did not have sufficient time to deal with the series of new issues contained in the new affidavits. The amount of new information introduced by Puno's own admission, very late in the day, required such additional detailed research and investigation on the part of Central Rand Gold that the Company was left with no option but to apply for the postponement of the scheduled 9 May 2013 hearing.

This is seen by the Company as a blatant excuse to introduce all manner of new material into proceedings substantially after the close of pleadings.

As at Friday, 31 May 2013, the Company has received confirmation that the Judge President is attending on the special allocation of a further hearing date of the application in order to expedite the matter.

Execution of the Simmer and Jack Prospecting Right

The Simmer and Jack Prospecting Right ("Right") was executed on 5 June 2013 following a lengthy administrative delay. This Right covers a SAMREC compliant shallow Main Reef Leader Resource of 0.19 million ounces of Indicated Resource and 0.04 million ounces of Inferred Resource as well as a SAMREC compliant Main Reef Leader Exploration Target of 3.16 million ounces.

In addition to this detailed and established Resource base, there exists considerable untested and un-mined potential in the Kimberley and White Reef horizons in this area which offer excellent targets for further development.

The execution of this Right marks the start of a fresh five year exclusive prospecting term, and grants the Company sole right to apply for a mining licence during this term on the back of positive prospecting results.

Acid Mine Drainage

Construction on the High Density Sludge Treatment Plant is reportedly on track with commissioning timed for the beginning of November 2013 and is expected to be fully operational in early 2014.

Financial Update

Cash and cash equivalents balance at the end of April 2013 was US$2.1 million, down from US$4.5 million in December 2012. This drop in cash is largely attributable to loss of production through poor plant performance in January, February and April. The recent drop in gold price has also put additional strain on cash reserves, but this is somewhat offset by the weakening Rand/Dollar exchange rate and improving MCF.

For further information, please contact:

Central Rand Gold +27 (0) 11 674 2304

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

www.buchanan.uk.com

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

Proprietary Limited

Jenni Newman

Johannesburg

7 June 2013

Sponsor

Merchantec Capital