PRODUCTION AND COMMERCIAL UPDATE

Central Rand Gold is pleased to provide the following production and commercial update:

PRODUCTION

During 2011, Central Rand Gold produced 14 856 ounces of gold, representing an increase in gold production of 60% from 2010, which was in line with the expected production figures provided in November 2011.

FINANCIAL UPDATE

Cash and cash equivalents as at 31 December 2011 amounted to $5.3 million, which was $0.5 million higher than the Company's cash position at 30 June 2011.

MINE PRODUCTION

Mine production was negatively impacted by the withdrawal of the Company's New Order Mining Right on 22 September 2011. On 24 October 2011, the Minister of Mineral Resources of the Republic of South Africa temporarily suspended the cancellation of the Mining Right, thus enabling the Company to continue with its operations, work re-commenced on 1 November 2011, whilst the Cancellation was finally set aside by agreement between the Company and the Department of Mineral Resources on 22 December 2012.

Mine production, using the conventional stoping methodology, for the last two months of 2011 was as follows:

Central Rand Gold is planning to increase underground production to 12 000 tons per month by the third quarter of 2012 whilst surface mining is expected to continue for the next three to five months. Several new target areas, which could extend the life of the surface operations, have been identified.

METALLURGY

The gold plant continues to perform well with plant availability averaging 92% and metallurgical recoveries of 95% having been reported during the last six months of 2011.

At present, plant capacity is being maintained at 12 000 tons per month. However, engineering studies are currently underway to improve the crushing circuit and increase plant capacity.

The Company plans to maintain its current toll treatment strategy whereby, in conjunction with a neighbouring processing plant operated by Mintails Limited ("Mintails"), Central Rand Gold has undertaken to treat any excess mine production at Mintails' Mogale gold facility.

RESOURCES AND RESERVES

Recent Resource evaluation studies on the Main Reef undertaken by Dr Carina Lemmer (an Independent Competent Person) have incorporated additional sampling information obtained through the current surface and underground mining and this exercise has allowed for the reclassification and upgrade of approximately 160 000 ounces contained within the Consolidated Main Reef area into the SAMREC compliant Measured Resource category.

\* Totals have been rounded off to two decimal points.

This represents an increase in Measured and Indicated Resources of approximately 3%. Whilst the quantum of increase is relatively minor, the confidence increase between Measured Resource and Indicated is substantial. This confidence increase is largely due to additional verification sampling undertaken during the course of current operations

\* Totals have been rounded off to two decimal points.

It is worth noting that the Resource now excludes material shallower than 30 metres (which has been reclassified as Exploration Target Material and is currently being exploited through open pit mining). This updated Mineral Resource also takes into account the Resource depletion arising from the Company's underground mining activities over the past 24 months.

The Company's Resources in other areas remain unchanged. This upgrade only impacts the Main Reef in the CMR area.

The decision to cease making use of the mechanised longhole stoping mining technique has required that the Company's Mineral Reserve be revisited. Scoping studies and trial mining using conventional hand held mining techniques have been completed and appear robust and economic. The Company is currently in the process of updating the Mineral Reserves in line with this new mining methodology and an updated Reserve statement is expected to be completed during the first half of 2012.

ACID MINE DRAINAGE

The current water level in the Central Basin is 428 metres below surface. It is pleasing to note that the current rate of rise of approximately 0.3 metres per day ("mpd") is below the anticipated rate of rise of 0.5 mpd.

The Company remains engaged in discussions with Trans Caledon Tunnel Authority ("TCTA") (the appointed implementing agent by the Minister of Water Affairs) and its legal team with regards to the use of the submersible pumps purchased by the Company.

NOTE: The information in this statement relating to Mineral Resources and geology has been reviewed and approved by Mr Keith Matier, BSc (Hons), GDE, PrSci Nat, who is a competent person in terms of the SAMREC and JORC codes. Mr Matier is Geology Manager of Central Rand Gold South Africa (Proprietary) Limited and has over 17 year's experience in exploration, mineral resource management and mineral evaluation.

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

 15 February 2012

Johannesburg

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Merchantec Capital