Tolling Agreement Processing Commencement

Further to the "Tolling Agreement Executed and First Ore Delivery Received" announcement dated 22 July 2016, regarding Toll Treatment and Joint Venture Opportunities, the board of directors of Central Rand Gold is pleased to provide the following update to shareholders.

Joint Venture Tolling Agreement Update

Central Rand Gold is pleased to announce that it has commenced processing the gold bearing ore which has been stockpiled at the Company's metallurgical plant by the third party ore supplier ("Ore Supplier") throughout the month of July. The Company is presently processing the stockpiled gold bearing material through Mill 3 only as Mill 1 is still being installed post refurbishment. The Company expects that material will be processed through both Mill 1 and Mill 2 from early August onward.

The Company is pleased that the Ore Supplier continues to regularly deliver the material for stockpiling at the Company's metallurgical plant. The Company recently completed metallurgical testing of the material and is expecting recovery rates consistent with industry standards.

Additional Joint Venture Opportunities

The Company continues to advance due diligence and negotiations with additional third parties regarding a variety of joint venture alternatives. The Company expects to be in a position to update shareholders regarding the Joint Venture Opportunities in the near future.

For further information, please contact:

Central Rand Gold +27(0) 87 310 4400

Lola Trollip / Nathan Taylor

Panmure Gordon (UK) Limited - Nominated Adviser & Broker +44 (0) 20 7886 2977

Adam James / James Greenwood

Merchantec Capital - JSE Sponsor +27 (0) 11 325 6363

Monique Martinez / Marcel Goncalves

29 July 2016

The information communicated in this announcement is inside information for the purposes of Article 7 of Market Abuse Regulation 596/2014 ("MAR").