CENTRAL RAND GOLD LIMITED - Central Rand Gold and Beijing Ankong Investment enter into a Memorandum of Understanding

Central Rand Gold and Beijing Ankong Investment enter into a Memorandum of Understanding

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 2007/019223/10)
ISIN: GG00B92NXM24
LSE share code: CRND JSE share code: CRD
("Central Rand Gold" or the “Company”)



CENTRAL RAND GOLD AND BEIJING ANKONG INVESTMENT ENTER INTO A MEMORANDUM OF UNDERSTANDING FOR THE 
POTENTIAL SALE OFCENTRAL RAND GOLD (NETHERLANDS ANTILLES) N.V.



Further to the announcement dated 11 November 2014 wherein shareholders were advised that Central
Rand Gold had entered into a non-binding Memorandum of Understanding with Hiria Group Company
Limited (“Hiria”) (“Hiria MOU”), the Board of directors of Central Rand Gold Limited (“the Board”) advises that
the Company has entered into a separate non-binding Memorandum of Understanding (“Ankong MOU”) with
Beijing Ankong Investment (“Ankong”), a wholly-owned subsidiary of Phoenix Tree Investment Group
(“Phoenix Tree”).

The Ankong MOU, which is substantively consistent with the terms and conditions of the Hiria MOU, also
contemplates the potential disposal of 100% of the shares held by Central Rand Gold in its wholly-owned
subsidiary, Central Rand Gold (Netherlands Antilles) N.V. (the “Subsidiary”) to Ankong for a cash
consideration of USD148 million (the “Transaction”). The Subsidiary owns the assets of the Central Rand
Gold Group.

The Ankong MOU is subject to a number of conditions including:
- mutual completion of due diligence by both Central Rand Gold and Ankong;
- Central Rand Gold obtaining all necessary regulatory and exchange approvals for the potential sale of the
  Subsidiary;
- Ankong obtaining relevant regulatory approvals; and
- the entering into a formal share sale agreement for the sale of the Subsidiary.

Consistent with the terms of the Hiria MOU, Central Rand Gold and Ankong have agreed that the finalisation
of all required due diligence and the execution of a formal share sale agreement should be completed by
31 March 2015.

The Company is in the process of establishing a virtual data room that will be made equally available to Hiria
and Ankong in order that both interested parties are treated equitably and will have access to identical
information. The MOUs with Hiria and Ankong have both been entered into on a non exclusive basis.

The Board cautions that at this time there can be no certainty that the discussions with Hiria or with Ankong
will lead to a formal share sale agreement being entered into nor that the potential sale of the Subsidiary will
be completed.

A further announcement relating to the Transaction will be made in due course.

Further information on Phoenix Tree and Ankong

Ankong is a subsidiary of Phoenix Tree, a Hong Kong based financial investor which has a broad mandate to
invest in strategic opportunities across various industries and jurisdictions which will provide an opportunity
to unlock value though the introduction of Chinese funding and technical expertise. Phoenix Tree, through its
wholly-owned subsidiaries, has invested in numerous listed public companies including YangMei Chemical
Co Limited SHA:600691 (USD1.2 billion market capitalisation), Steyr Motors Co Limited SHE:000760
(USD1.2 billion market capitalisation), Wasu Media Holding Co Limited SHE:000156 (USD5.3 billion market
capitalisation), Guangdong Elecpro Electronic Appliance Holding Co Limited SHE:002260 (USD0.7 billion
market capitalisation) and MeiDu Energy Corporation SHA:600175 (USD2.3 billion market capitalisation).

Phoenix Tree has also invested in private financial institutions including an insurance company, stockbroker,
unit trust, asset management and financial leasing company. Phoenix Tree’s stated gross assets total
RMB50 billion (USD8 billion).

The management team of Phoenix Tree and Ankong include experienced industry executives and financiers
from various backgrounds and industries, including the mining industry. The Chairman of Phoenix Tree,
Changle Liu, is also the Founder, Executive Chairman and Chief Executive Officer of Phoenix Satellite
Television Holdings (HKG:2008) which has a market capitalisation of USD1.9 billion.


For further information, please contact:

Central Rand Gold                                                +27 (0) 87 310 4400
Johan du Toit / Nathan Taylor

Charles Stanley Securities Limited                               +44 (0) 20 7149 6478
Marc Milmo / Mark Taylor

Merchantec Capital                                               +27 (0) 11 325 6363
Monique Martinez / Marcel Goncalves

Jenni Newman Public Relations                                    +27 (0) 11 506 7351
Proprietary Limited Jenni Newman

Johannesburg
21 November 2014

Sponsor
Merchantec Capital

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