CENTRAL RAND GOLD LIMITED - Operational Update

Operational Update

Central Rand Gold Limited
(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 2007/0192231/10)
ISIN: GG00B24HM601
LSE share code: CRND JSE share code: CRD
("Central Rand Gold" or the “Company”)


                                OPERATIONAL UPDATE


Central Rand Gold today provides an update on significant events
that occurred during the first four months of 2013, expanding on
detail provided in the Annual Report for 2012.


Mining Operations
Total mine production for the quarter was 54,613 tonnes, of which
40%    was   from   opencast    mining.   Underground   mining  continued   to
focus on developing and opening up new mining stopes through off-
reef   development. The   mining   operations   have   been successfully
developed through the Western dyke, which has provided Central
Rand Gold with a significant new mining front within our CMR West
mining area.


Mine Call Factor
The Mine Call Factor (“MCF”) has showed steady improvement through
the first quarter of 2013 with batch test work of underground
sulphide ore averaging 67% for the year to date with a high in
March of 71%. The medium-term target remains to achieve a MCF of
above 75%.


Production results
The challenges of erratic milling availability surrounding the
Bateman Mill continued throughout January and February, requiring
several gearbox replacements and major modifications to the mill
drive train. These modifications appeared to bear fruit in March
with production stabilising at 15,645 dry tonnes, arising from a
solid 85% plant availability. In April however, a further two
weeks were lost on the Bateman Mill due again to further gearbox
failures. The Bateman Mill was brought back online on 13 April
2013 with larger improved gearboxes and a strengthened drive train
and has operated well since.


                           Q4 (2012)       January       February        March         Q 1 (2013)


 Dry Tons Processed (t)       44081         8282          12556          15645           36483


    Belt Grade (g/t)          2.23          2.88              1.91        1.94            2.20
  Residue Grade (g/t)         0.15          0.22              0.22         0.2            0.21


   External Tolling (t)       1660          2048              7052        3646           12746
  External Tolling (g/t)       2.2          1.91              1.92        2.25            2.01


Since the January planned shutdown, the CIL Mill availability has
been consistently above the target of 80%.


Toll treatment of ore was stepped up during the first quarter of
2013  to  alleviate the impact of the lower than anticipated
internal production.


Potential Restructuring

The disappointing first quarter results brought about by on-going
poor plant availability on the part of the Bateman Mill, coupled
with  lower  grades, required a re-assessment of the Company’s
business structure and plan.



The current low grades were largely expected as mining progressed
through a known low grade area of the mine. The issues surrounding
the Bateman Mill are a source of concern and thus the Company has
embarked on remedial steps to assure continuous steady state
production.



The Company is currently in talks with an external toll processing
company with a view to exploring the possibility of toll treating
the majority of the Company’s mine production at commercial rates
more closely aligned to the existing internal cost of production.
The option to outsource gold production provides operating cost
protection; access to additional metallurgical production capacity
as well as ensuring a more stable production profile.



Due to the aforementioned factors, on 8 April 2013 the Company
commenced discussions with its employees and other affected
parties, with regards to potential redundancies, in   terms   of
Section 189 of the Labour Relations Act 66 of 1995. The process
will be completed by 8 June 2013, where after the new agreed upon
organisational structure will be implemented.



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
29 April 2013

Sponsor
Merchantec Capital

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