Operations and Board Update

Central Rand Gold Limited

("Central Rand Gold" or "CRG" or the "Company")

(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 2007/019223/10)

ISIN: GG00B24HM601

Share code on LSE: CRND

Share code on JSE: CRD

Operations and Board Update

Central Rand Gold ("CRG" or the "Company" or the "Group"), the gold mining company with assets in Southern Johannesburg, is pleased to announce the following update:

·; Successful conclusion of trial mining;

·; Mining methodology proven and ready to be used across CRG's existing mining right area;

·; Release of updated Competent Persons Report ("CPR") to underpin CRG's first mine and next capital raising;

·; 79% increase in Joint Ore Reserves Committee ("JORC") probable reserve base to 482 000 ounces of gold;

·; Average operational cash (include water pumping costs) and capital costs of US$582/oz and US$173/oz respectively;

·; Reconfigured metallurgical plants commissioned;

·; Report on current activity and short term production strategy; and

·; Michael McMahon succeeds Alastair Walton as Chairman. Mr McMahon has 20 years' experience in senior board roles at Impala Platinum Holdings Limited, Gencor Limited and Gold Fields Limited.

TRIAL MINING:

Decline and reef development

A decline from a portal at Slot 8 is being developed to access the two channelised areas associated with higher grades ("pay-shoots") in the initial mining area at Consolidated Main Reef ("CMR"). Trial mining was conducted in the first areas of reef that could be accessed from this decline and consequently these areas were not chosen for grade. The objectives of trial mining were to validate the mining method and provide real physical and financial data for input into mine design, which have been achieved.

The Slot 8 decline is approximately 125 metres below surface with 810 metres of decline development completed to date. In addition 440 metres of on reef development and crosscuts have been developed.

In total 1,250 metres of development has been completed with a single double boom jumbo. Since the appointment of a mining contractor, Australian Contract Mining (Pty) Limited, rates of 240 metres per month have regularly been achieved. This is in line with world's best practice and significantly exceeds South African norms.

Stoping

Three stopes have been successfully blasted and extracted using mechanised long hole stoping and three cemented backfill support pillars (previous termed cemented aggregate fill pillars) have been poured. This simple but highly productive mechanised mining technique is common in Australia but new to the Witwatersrand.

Hangingwall conditions experienced to date have been good and no abnormal roof support structures have been required.

No damage occurred to cemented backfill support pillars or the hangingwall after stope blasting and subsequent extraction of blasted material.

One of the stopes was successfully split-fired to separate low grade parting from Main Reef and to extract these strata separately. The split-firing of low grade parting ore from Main Reef ore provides flexibility on a stope-by-stope basis to either split-fire or to take the entire package (Main Reef, parting and the sweepings and vampings lying on the parting) depending upon grade.

Trial mining has also demonstrated that:

- 90% of blasted stope material is recovered by the loader on the level below. The 10% of broken stope ore left behind after blasting is confirmed to be amenable to water jetting;

- Roof support using split-sets and mesh allows for safe and economic mining.

This method of stoping and production avoids labour intensive and potentially hazardous hand-held in-stope drilling. CRG has now confirmed that highly mechanised mining methods common in Australia but new to the Witwatersrand basin are appropriate and economical.

PROCESSING:

It has been recognised that gold output is maximised by the most effective utilisation of the 18,000 tonne per month Carbon-in-Pulp ("CIP") plant. To improve recovery and reduce costs the plant has been reconfigured to separate the feed into two streams, with the higher grade stream directed to an upgraded CIP plant and the lower grade material directed to the existing flotation plant. Optical sorting has also been trialled and will be added to the plant-flow sheet.

Result of optical sorting trials

On reef development the optical sorter rejects 50% of the material fed to it whilst recovering 85% of the reef, with a reduction in dilution resulting in an uplift from an estimated 1.5 g/t to 3.0 g/t.

For stoped ore the optical sorter will be used to separate a high grade stream to be sent directly to the CIP plant from the low grade flotation circuit stream.

HIGHLIGHTS OF UPDATED CPR

The updated CPR has been carried out by Snowden Mining Industry Consultants (a full copy of which is available on www.centralrandgold.com). Highlights include:

·; CMR (Slot 8) ore reserve increased by 79% to 3,73 million tonnes at 4.0 g/t which equates to 482,000 ounces of gold;

·; An updated mine plan which will produce 476,190 ounces of gold over a mine life of 12 years;

·; Average operational cash (include water pumping costs) and capital costs of US$582/oz and US$173/oz respectively;and

·; Extensions of mineralised reef zones (partings), sweepings and vampings and remnant reef pillars have been identified as other potential and readily available sources of gold have not been included in the above.

Future strategy and fundraising

The Board believes that CRG's mining and metallurgical methodologies can be implemented across its entire tenement area, requiring, relatively minimal adjustment to and re-testing of its mining methods to suit local conditions, and in particular reef widths, before full-scale mine development can commence. 

The Company's next target area for development is the western tract of the historic Crown Mines area, contiguous with the eastern tract of CMR and Langlaagte. The move to commence feasibility work at Crown Mines is expected to result in further increases in CRG's JORC reserve base.

In summary, management's "vision" of developing and building a major economic gold operation is intact. The upside potential of developing both the current and future mining areas remains considerable.

The immediate target for the Group is to ramp-up production to create a sustainable and cash positive mining operation. In order to fulfil this stage of its strategy, CRG will be required to raise new equity finance. The Company and its advisers are in the process of finalising a prospectus which is expected to be published in the second half of May 2010.

CURRENT ACTIVITIES AND SHORT TERM PRODUCTION PLANS

With the completion of trial mining, underground activities are now concentrated on decline and reef development in line with the mine plan contemplated in the CPR in anticipation of a successful capital raising.

With the completion of the plant reconfiguration and until underground ore becomes available, in steady-state production during the third quarter of 2010, the plant will process:

a) An estimated ore stockpile of approximately 23,000 tonnes at 3.9 g/t sourced from underground development and trial mining; and

b) Accessible surface material, comprising tailings and oxide ore material to be mined from Slots 8 and 9 on CMR:

- Systematic auger sampling in the tailings disposal area has identified exploration target material* between 30,000 tonnes and 50,000 tonnes of tailings material at an estimated grade of between 2.2 g/t and 3.5 g/t.

- Previous and ongoing exploration for oxide ore in the Slot 8 and 9 areas identified an exploration target of between 15,000 tonnes and 30,000 tonnes at an anticipated in situ grade of between 2.4 g/t and 4.4 g/t. These figures are based on weighted average composite sampling and gold assay of material obtained from systematic trenching, reverse circulation drilling and diamond drilling.

 *The potential quantity and grade of exploration target material 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 is ongoing, and includes trial mining and processing of this shallow target to establish grade and orebody continuity, mineability, dilution and throughput characteristics.

BOARD CHANGES

With the completion of trial mining and the release of the updated CPR the future development of CRG has been underpinned. This is an appropriate moment to bring forward the previously stated board changes detailed in the announcement dated 22 January 2010, with Michael McMahon assuming the chairmanship to lead the Company into the next phase. Accordingly, Alastair Walton and Robert Kirkby resign from the board with immediate effect.

Commenting on the operations update and the Board changes, Johan du Toit, Chief Executive, said:

"The trial mining has demonstrated that CRG has not only an economic mine, but also a template to breathe new life into a vast area which has remained dormant for decades. The Board of CRG thanks Alistair Walton and Robert Kirkby for their significant contribution to the Company over the years - they have both been instrumental in getting CRG to the point of starting commercial gold production".

For further information, please contact:

Central Rand Gold +27 (0) 11 551 4000

Johan du Toit / Patrick Malaza

Evolution Securities Limited +44 (0) 20 7071 4300

Simon Edwards / Chris Sim / Neil Elliot

Macquarie First South Advisers (Pty) Limited +27 (0) 11 583 2000

Thembeka Mgoduso / Annerie Britz / Melanie de Nysschen / Manisha Ramlakhan

Buchanan Communications +44 (0) 20 7466 5000

Bobby Morse / Katharine Sutton

Jenni Newman Public Relations (Pty) Limited +27 (0) 11 506 7300

Jenni Newman / Megann Outram