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CRD - Central Rand Gold Limited - BEE Developments

Release Date: 16/02/2009 12:00:01      Code(s): CRD
CRD - Central Rand Gold Limited - BEE Developments                              
Central Rand Gold Limited (`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 2007/0192231/10)                              
ISIN: GG00B24HM601                                                              
Share code on LSE: CRND                                                         
Share code on JSE: CRD                                                          
BEE Developments                                                                
From the time of CRG`s flotation in November 2007, CRG has fulfilled the        
requirements for full Broad-Based Black Economic Empowerment ("BBBEE") under the
South African Mineral and Petroleum Resources Development Act, 2002 ("MPRDA")   
and the South African Mining Charter, ahead of the 5 year timetable envisaged   
for full compliance, with Puno Gold Investment (Pty) Ltd ("Puno") acting as the 
BEE partner.                                                                    
Under the arrangements in force, Central Rand Gold SA ("CRGSA"), the main       
operating subsidiary of the Company, can call upon its shareholders for funding 
of ongoing exploration and development activities in proportion to the          
shareholdings held in CRGSA.                                                    
Throughout 2008 and as noted in CRG`s results for the year ended 31 December    
2007, CRGSA has been in discussions with Puno, as a 26 per cent shareholder in  
CRGSA, over funding arrangements and also the make-up of the parties interested 
in Puno as a body representing a broad base of historically disadvantaged South 
Africans.                                                                       
As detailed in CRG`s flotation prospectus, Puno was considered an appropriate   
partner for CRGSA as it was believed to be well placed to facilitate dialogue   
with local communities regarding socio-economic upliftment programmes and       
environmental sustainability. During the course of CRGSA`s unprecedented        
community and social consultation programme of 2008, CRGSA held various         
community meetings where as many as 20,000 people attended.                     
To date, Puno has neither fulfilled its funding obligations stipulated in the   
shareholder`s agreement nor demonstrated its commitment to the communities it   
was expected to represent, as it has not attended any of the community and      
social consultation meetings.                                                   
Subsequently, Central Rand Gold Netherlands Antilles ("CRGNV"), the Central Rand
Gold Group company directly holding shares in CRGSA, has on 16 February 2009    
exercised the call option granted to it in terms of the CRGSA Shareholders      
Agreement and given the requisite 90 days` notice, as provided for under the    
shareholder`s agreement to acquire Puno`s entire interest in CRGSA. This        
shareholding will be held in trust pending the outcome of discussions relating  
to new BBBEE arrangements with other interested parties who have clearly stated 
commitment to ensuring a broader based community involvement in the Central Rand
project.                                                                        
The future changes in the BBBEE arrangements will not have any effect upon CRG  
achieving its initial target annualised production of 100,000ozpa by the end of 
2009, or the planned ramp up of production beyond 100,000ozpa in 2010.          
Commenting on the changes in the BBBEE arrangements Alastair Walton, Chairman of
CRG stated:                                                                     
"The CRG project is of fundamental importance to the Johannesburg and Gauteng   
region. It will create a whole new generation of mining and associated          
businesses in the area.  It has always been CRG`s strategy to maximise the      
considerable opportunities for the local communities which this project will    
bring.  As such, we are committed to ensuring that our BBBEE is precisely what  
it is meant to be - broad based and for the benefit of the communities and all  
the stakeholders involved in this exciting project."                            
Issued on behalf of: Central Rand Gold Limited                                  
Date: 16 February 2009                                                          
Contact:                                                                        
Johan du Toit                      +27 (0) 11 551 4000                          
Wayne Epstein                      +27 (0) 11 551 4000                          
Enquiries:                                                                      
Evolution Securities Limited       +44 (0) 20 7071 4300                         
Simon Edwards / Chris Sim / Neil Elliot                                         
Macquarie First South Advisers (Pty) Ltd +27 (0) 11 583 2307                    
Thato Morojele / Annerie Britz                                                  
Buchanan Communications Limited    +44 (0) 20 7466 5000                         
Bobby Morse / Ben Willey                                                        
Jenni Newman Public Relations (Pty) Ltd  +27 (0) 11 772 1033                    
Jenni Newman / Megann Outram                                                    
Date: 16/02/2009 12:00:01 Supplied by www.sharenet.co.za                     
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