OPERATIONAL UPDATE

The Company today provides an update on the year end production ahead of the announcement of its 31 December 2012 year end results to be released in April 2013.

Production results

During 2012, Central Rand Gold produced 13,709 ounces of gold which was within 98% of the production guidance issued in the third quarter Interim Management Statement. Underground production continues to perform in line with management expectations and the Company is currently extracting its target of 14,000 tonnes run rate per month.

Gold production in the 2012 year was impacted by the previously reported processing difficulties and below anticipated mine call factor ("mcf") recovery in the third quarter of the year which flowed into the fourth quarter of 2012.

As previously reported, the Company had a significant focus on reducing its gold losses throughout the production process. It was identified that the majority of Central Rand Gold's gold losses (up to 40%) occurred as a result of the ore handling during its primary and secondary crushing processes.

Major modifications to the VSI crushing circuit were undertaken in January 2013 with the aim of replacing the existing open crushing configuration which required external mobile jaw crushers with a self contained closed circuit crushing train. The modifications are intended to optimise tramming, eliminate external crushing costs and most importantly to minimise fine gold losses during the primary crushing stage. Batch testing of underground sulphide ore is currently underway.

A further contributor to the lower than anticipated production in the fourth quarter of 2012 was a marked decrease in the availability of the smaller Bateman Mill dropping from 83% availability in November 2012 to 54% availability in December 2012 with an overall availability of approximately 70% for the fourth quarter. The root cause of this reduction in availability was several gearbox failures culminating in a two week shutdown and rectification during January 2013. The gearboxes have now been modified to take up the extra load required and the mill has performed well since.

A planned 5 day shutdown of the Carbon In Pulp Mill in early January 2013, to replace a worn pinion gear, was unfortunately extended for a further seven days upon discovery of a bent pinion coupling shaft which required additional fabrication. The mill was returned to full production on 28 January 2013 and it is expected that production targets for both mills will now be consistently achieved.

Central Rand Gold commenced toll treating some of its surplus underground ore to the Mintails Limited Mogale gold facility at the end of January 2013, to limit production and cash losses incurred during the month.

Financial Update

Continuous cash preservation and optimisation efforts retained closing Cash and cash equivalents at 31 December 2012 at US$4.5 million which is the same as that at 30 September 2012 (31 December 2011 - US$5.3 million).

Acid Mine Drainage

As previously announced, an agreement was reached with the Trans Caledon Tunnel Authority ("TCTA") on 26 November 2012 for the donation of the pumps owned by Central Rand Gold. As planned, construction of the High Density Sludge Treatment Plant commenced on 14 January 2013 and the TCTA is hopeful that the plant will be completed and operational during the course of this year.

As at 31 December 2012, the water was situated at 310 metres below surface and the rate of rise remained between 0.2 and 0.3 metres per day.

Focus areas for 2013

Central Rand Gold will continue to focus on improving its mcf to achieve a more sustainable and industry norm of between 75% and 85%. A further focus will be to review the suitability of its current metallurgical plants. Based on the current underground production profile of 14,000 tons per month being maintained Central Rand Gold expects full year production of 14,500 ounces to 15,000 ounces. Central Rand Gold does however understand the need to move beyond the current production range and it plans to finalise its medium and long term growth strategy by June 2013.

Further details for the year ended 31 December 2012 will be set out in the results announcement due to be released in April 2012.

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

Johannesburg

6 February 2013

Sponsor

Merchantec Capital