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CENTRAL RAND GOLD LIMITED - Annual Report Release

Release Date: 29/04/2013 09:00:00      Code(s): CRD       PDF(s):  
Annual Report Release

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: CRNDJSE share code: CRD
("Central Rand Gold" or the “Company” or the “Group”)

                   Annual Report Release


Central Rand Gold is pleased to announce its annual results
for the year ended 31 December 2012.
Highlights

- Stabilisation of mining operations and increase of ore
  production to targeted 12,000 tonnes per month (“tpm”) and a
  subsequent run rate of 14,000 tpm in the final quarter of
  2012.
- CMR East is now included in Central Rand Gold's overall
  Probable Reserve profile and has raised total Probable
  Reserves to 719,700 ounces and added US$70 million to the
  inferred value of the Company's mining operations.
- Focus on improving safety standards – measures have been put
  in place to address steep-stoping hazard awareness. No
  fatalities for the fifth consecutive year.
- Significant progress in negotiations to resolve Acid Mine
  Drainage (“AMD”) in the Central Basin. South African
  government-approved   agreement  signed   to  construct and
  implement a solution by late 2013. Central Rand Gold has
  donated two submersible pumps towards the Central Basin
  dewatering efforts and work began on the project by Trans
  Caledon Tunnel Authority (“TCTA”) in February 2013.
- Completion of pre-feasibility studies on CMR East and West
  and a scoping study on Crown West.
- Submission of a revised Social and Labour Plan and Mine
  Works Plan to the South African Department of Mineral
  Resources (“DMR”).
- Upgrade and re-commission of Bateman Mill has improved mill
  capacity from 12,000 tpm to 16,500 tpm, with reliability
  still to be confirmed.
- Upgrade and commission of sulphide focused closed crushing
  circuit to cater for underground run-of-mine production.
For full copies of the Company's Annual Report and Accounts,
including the Company Profile, Directors' Report, Corporate
Governance and Sustainable Development Report, Directors'
Responsibility Statement, Company Secretarial Confirmation,
Auditor's Report and full Financial Statements, please refer
to the Company's website: www.centralrandgold.com.
In addition, the notice of the 2013 annual general meeting to
be held on Friday, 7 June 2013 will be released using
electronic means, on 7 May 2013. Shareholders should,
therefore, download copies of the circular, notice and forms
of proxy at www.centralrandgold.com.
Shareholders are advised that the annual general meeting
(“AGM”) of the Company is to be held at the offices of Carey
Olsen, Carey House, Les Banques, St Peter Port, Guernsey, GY1
4BZ (not at the registered office) at 11:00 (UK time) on 7
June 2013. Shareholders wishing to participate in the AGM in
Guernsey via video link from London may do so at the offices
of K & L Gates, One New Change, London, EC4M 9AF. Shareholders
in South Africa wishing to participate in the AGM via video
link from Johannesburg may do so at the offices of Statucor
(Proprietary) Limited, 22 Wellington Road, Parktown, South
Africa.


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 Communications Limited            +44 (0) 20 7466 5000
Bobby Morse / Louise Mason

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

Chairman’s Report

I present to you the 2012 Integrated Annual Report of our
Company that continues to survive, but struggles to prosper.
The gap between survival and prosperity is rooted in “proof of
concept” issues as, like many other start-up operations, we
discover (and address) in-situ the weaknesses in our original
plans.

Current status
While I described 2011 as turbulent in my report of last year,
with the Company being buffeted by major events, 2012 has been
a more normal year for a mining company, with the fortunes of
the Company depending almost entirely on production issues.
These are covered comprehensively in the 2012 Integrated
Annual Report, so I will only summarise as follows:
- The gold price and the Rand/Dollar exchange rate have
  supported our endeavours.
- There has been no industrial unrest at our operations,
  though we monitor this situation carefully.
- There is certainty, with signed contracts and site work
  under way, in the area of a de-watering programme for the
  Central Wits Basin on which we operate.
- There have been no further challenges to our Mining Rights.
- The dispute with Puno Gold Investments (Proprietary) Limited
  (“Puno”),   our  Broad-Based   Black   Economic   Empowerment
  partner, has not developed and has not impacted the Company
  during the year.
- Revised   Social   Labour  Plans,   Mine  Works    Plans   and
  Environmental Management Plans, in line with our current
  size and future expectations, have been submitted to the
  Department of Mineral Resources.
- The Company's Reserve base continues to mature and expand,
  with current operations at CMR West being re-evaluated based
  on conventional underground mining and with the completion
  at CMR East of an encouraging pre-feasibility study, an
  essential part of the upgrading of that property from
  Resource to Reserve. Both these exercises have been the
  subject of an independent Competent Person review.
- The changeover from largely surface to largely underground
  mining,   based   on   a  conventional   hand-held    drilling
  methodology, has been successful operationally, but less so
  financially. The technical parameters in terms of tonnage,
  grade and Mine Call Factor (“MCF”) (Face to Surface) have
  all been very close to targets, but operating costs per
  tonne milled have been substantially over budget.
- As has been the case throughout our short history, our ill-
  conceived surface layout and metallurgical plants have
  delivered unacceptable (and unexpected) handling losses of
  gold and unacceptable availability of plant. These two
  factors, and particularly the unavailability of plant during
  the third quarter of the year;
  - delivered a metallurgical performance substantially below
    industry norms; and
  - almost single-handedly marked the difference between an
    expected cash-positive year and the actual loss and cash
    drain that occurred.
  Metallurgical under-performance has, at its roots, the
  process and engineering compromises made in 2007 and 2008 in
  pursuit of the (since abandoned) notion of locating the
  metallurgical plants underground.
- While the Company had been expecting to make a modest profit
  and be cash-positive over the year, the reality was an
  “all-in” operating cost that was US$350 per ounce higher
  than planned at US$1,978 per ounce, an operating loss, and a
  net cash draw down of US$863,000, leaving the Company (at
  US$4.5 million cash-in-hand) uncomfortably close to minimum
  required levels.

Is there a silver lining?
There is indeed a silver lining, even if it is more difficult
to see a golden one.

In terms then of the silver lining:
- We have a safe and de-watered mine for as far as the eye can
  see.
- The potential to translate performance at Consolidated Main
  Reef to other Central Rand Gold Mineral Rights and
  Prospecting Rights is very real.
- The mining method is proven and delivering material in the
  right quantities and at the right grade.
- Higher emphasis is being placed on Mining Costs and
  efficiencies. The effort underground must move from proving
  it can be done, to proving it can be done to budget, and
  from that base towards demonstrating an acceptable return to
  shareholders.
- Simplified   and  easier   to   work  with   (i.e.   cheaper)
  underground support methodologies are being implemented.
- Alterations to material handling layouts on surface have
  already substantially reduced surface gold losses in the
  three months of December through to the end of February. The
  Face-to-Mill Mine Call Factor has increased in this period
  from 65% to 75%. Without any further alterations, this is
  the difference between the losses of last year and modest
  profits.
- Further metallurgical layout modifications to reduce losses
  are in hand.
- Post the year-end one of our Bateman Mill drive gearboxes
  failed in late February 2013. Your Company has bitten this
  particular bullet and sourced two brand new gearboxes. For a
  three-week period, from the breakdown to re-installation,
  this plant ran at 60% load with surplus material being toll
  refined.
- The Company is in a state of unstable equilibrium. Cash
  reserves are stretched to the point where, while toll-
  refining represents a survival (just) Plan “B” in the event
  of further Bateman Mill problems, delivery from underground
  to plan in the first quarter of the year is a sine qua non.
  With that proviso, the “silver lining” should see a
  profitable year and a substantial increase in cash-in-hand
  by year-end.

Where is the gold lining?
The frustration facing shareholders of Central Rand Gold is
that it was launched as a potential major, and it is now
little more than a struggling junior. This junior has been
through many struggles as it has tested and found wanting the
various mining and extraction philosophies proposed at the
launch of the Company.
- The time-honoured tradition of mining companies “trading
  out” of their difficulties is a possible and viable scenario
  for Central Rand Gold, but it would take many years for the
  Company to fund its own growth and the prospect is probably
  not   very  satisfying   to  shareholders.   Absent  of  any
  alternative this is, of necessity, the base case.
- Management continues to test the debt market in South
  Africa, and while this seems less hopeless than it did a
  couple of years ago, Central Rand Gold would have to be in a
  more certain operational position than it is right now to
  secure any meaningful bank support.
- Further capital of some sort is necessary if the Company is
  to break free of the economies of scale inefficiencies that
  now burden it. The obvious questions are:
  - How big?
  - How much?
  - Credibility?
  - Shareholder appetite?
  Your Board believes that the starting point here is
  credibility, which will determine appetite, and that if the
  subject is to be broached with shareholders it must be off a
  stronger track record than is currently tabled. The
  expectation is that this matter could be examined from a
  credible base around the third quarter of the 2013 year.
- The labour relations drama of 2012 in the precious metals
  mining industry in South Africa has bypassed Central Rand
  Gold. Nevertheless, the turbulence and uncertainty have
  tarnished the industry and rendered corporate action around
  or by Central Rand Gold, in any form, less likely. The
  Company is alive to the potential of such action, and
  continues to explore alternatives, particularly were they to
  deliver the Company from its current funding constraints.

Where to trade?
Last year I tabled a suggestion that Central Rand Gold Limited
should move from the LSE Main Board to an Alternative
Investment Market (“AIM”) listing. Whatever the merits of such
a proposal in terms of costs and possibly being closer to our
retail shareholder base, this suggestion has not found favour
with such major shareholders as we have canvassed.
While the matter is not dead, this idea has been shelved for
the present.

Puno
Almost unbelievably the situation with our Black Economic
Empowerment partner remains unchanged from last year's report.
While last year I reported that a court date had been set to
hear our application to either find that our understanding of
the funding mechanisms in the Central Rand Gold South Africa
Shareholders' Agreement is correct, or to have the Court
appoint an arbitrator, various legal contrivances by Puno have
pushed this date out to May 2013.
That date approaches and we expect fundamental change in this
situation in the second half of this year.

Governance
For completeness I repeat my observation of last year that
with the slimmed down status of the organisation we are
stretched in terms of the detail of compliance with the
Combined   Code  (and   King  III   in  South   Africa).  This
particularly refers to internal controls and the separation of
powers.

The Board has reviewed the effectiveness     of   the   internal
controls and is satisfied therewith.

There is a separate section on Governance in the body of the
2012 Integrated Annual Report.

Appreciation
I extend my thanks to the rest of the Board and to the
executive team. That we are still here and showing reasonable
prospects is a testament to their tenacity and efforts.

Michael McMahon
Chairman




Chief Executive Officer’s Report

Introduction
Looking back on 2012, it is pleasing to be able to inform
shareholders that considerable progress was made in all of the
areas targeted for particular focus and attention in the
prospects section of my 2011 report.

A prime goal was to stabilise Central Rand Gold's mining
operation, based on its new mining methodology, and build ore
production up to a sustainable level of 12,000 tpm. This level
was reached by August 2012 and by November 2012 had been
increased to a run rate of 14,000 tpm, a number that
management   is  planning  to   maintain  during   2013.  With
sufficient underground ore available, it is unlikely that any
development in the decline will take place until the end of
2013 or early 2014.

Another important objective was to calculate and report a new
Reserve base, taking the new mining methodology into account.
Central Rand Gold actually went one better with two economic
studies being completed during the year – independent mining
consultants, Venmyn Rand (Proprietary) Limited (“Venmyn”),
produced a report in June 2012 that outlined Central Rand
Gold's latest Reserve statement indicating the viability of
the Company's mining operations; and in November 2012, Venmyn
also produced an in-depth Competent Person's Report and pre-
feasibility study on the Company's Consolidated Main Reef East
project.

As a result of the 12 June 2012 announcement, CMR West's
Probable Reserves were outlined at 406,900 ounces of gold
(3.55 million tonnes at 3.56 grams per tonne (“g/t”)).
Following the 12 November 2012 announcement, CMR East's
Probable Reserves were outlined at 312,800 ounces (3.79
million tonnes at 2.57 g/t). The inclusion of CMR East in
Central Rand Gold's overall Probable Reserves profile has
raised total Probable Reserves to 719,700 ounces and added
around US$70 million to the inferred value of the Company's
mining operations.

Both of the aforementioned economic studies are important
indicators of the undoubted potential of Central Rand Gold to
become a sustainable gold producer.
A further development milestone was achieved through the
completion and announcement on 28 February 2013 of an Economic
Scoping Study (“Scoping Study”) for the Crown West Mining
Right. The Scoping Study was undertaken to determine the
potential in this target area and to test whether further
exploration and developmental work was justified.

The production profile demonstrates that at peak production in
the scheduled 10-year life-of-mine, average gold production of
53,000 ounces is anticipated, returning a net present value
(“NPV”) of approximately US$63 million.

Whilst the Scoping Study is not a definitive economic
assessment and does not impart Reserve status to the project,
this production profile and valuation strongly suggests that
this area undergo a pre-feasibility study (with associated
diamond drilling) in order to increase the Resource confidence
from Inferred to Indicated and ultimately Mineral Reserves.

Another objective for 2012 was to explore opportunities with
other interested parties to extract value from Central Rand
Gold's extensive Mining Right area. To this end we signed an
agreement with Goldplat Recovery (Proprietary) Limited, in
terms of which, a small shaft in the Crown East area is to be
opened up in order to gain access to the reef. Revenue
royalties will be generated for Central Rand Gold during 2013
as a result of this mutually beneficial agreement.

Last, but certainly not least, it was a stated intention to
submit and receive approval for a revised Social and Labour
Plan and a Mine Work Programme. All the required documentation
was submitted on schedule by June 2012, but feedback from the
DMR is still awaited.

My report outlines the major corporate and operational
activities that took place during the year, setting the scene
for further progress to be made during 2013.

Welcome progress on acid mine drainage
The rising water table in the Central Basin as a result of AMD
has over the past few years been a major concern and indeed a
massive threat to the Company's prospects and continued
existence. So serious had the problem become that Central Rand
Gold had to take the decision to suspend underground mining
development in the second quarter of 2011, placing a
significant question mark over the Company's future prospects.

It was therefore a great step forward when an agreement was
signed at the end of December 2012 with TCTA, the organisation
appointed by the South African Minister of Water Affairs to
resolve the growing AMD issue in the Central, Eastern and
Western Basin areas. Through this agreement, Central Rand Gold
agreed to donate its two German-made submersible water pumps
to the initiative in return for the right to dewater the
Central Basin and maintain the Environmentally Critical Level
(“ECL”) at around 225 metres below the surface. It is
important to note that Central Rand Gold obtains access to its
resources to ECL at no further cost to itself.

While Central Rand Gold will pay for    the incremental cost of
dewatering below the ECL level, it      will have access to a
government funded infrastructure that   is being established to
ensure that the Central Basin can be    dewatered on an ongoing
basis.

TCTA has appointed construction specialist, Group Five
Limited, to establish the infrastructure and it is expected
that this project, which got underway in mid-January 2013,
will be completed by the last quarter of 2013, enabling
dewatering to commence.

For Central Rand Gold and other companies and communities
located in the Central Basin area of the Witwatersrand, it is
hugely positive that action is finally being taken. Industry
and the government are now working closely together to come up
with a workable solution for a problem that has the potential
to cause massive economic and social upheaval on the southern
fringes of the City of Johannesburg.

The Ritz pumps that Central Rand Gold has contributed to the
dewatering solution were acquired at a cost of €3.5 million
and are capable of pumping 1,500 kilolitres of water per hour
at 43 bar pump pressure differential with a pump efficiency
rate of 81%. These pumps will ideally complement the new high
density sludge plant that is being constructed by Group Five
Limited with a capacity to process around 84 million litres of
AMD on a daily basis.

With concrete steps now being taken by industry and government
to control AMD, a major risk factor is in the process of being
reduced and ultimately removed as far as the future of Central
Rand Gold's mining operations are concerned.

Exploration and geological update
Resources and Reserves
Independent mining consulting company, Venmyn, was appointed
in March 2012 to validate and sign-off on updated Resource and
Reserve estimations undertaken by Dr Carina Lemmer (an
Independent Competent Person for Resources) and Mr Lefu
Mohloki (an Independent Competent Person for Reserves). During
November 2012, Venmyn was again appointed to undertake a
similar exercise validating the newly established Reserves
underlying CMR East.
In January 2013, Dr Lemmer undertook a further re-estimation
of the Main Reef Resources underlain by Consolidated Main Reef
with a view to incorporating additional sampling captured
during the year subsequent to the previous update and also
discounting ore tonnage mined during 2012.

SAMREC Compliant Mineral Resources
                   February 2013              February 2012

                     Tonnes   Grade Content Tonnes     Grade Content
Area      Category     (Mt)   (g/t)   (Moz)   (Mt)     (g/t)   (Moz)

CMR       Measured     1.33    3.57    0.17     1.47    3.60    0.16
          Indica-
          ted        12.13     4.30    1.68    23.98    6.93    5.34
          Inferred     0.00    0.00    0.00     2.62    8.78    0.74
          Explo-
          ration
          Target     15.86     8.49    4.33     0.00    0.00    0.00
          Indica-
Crown     ted          2.58    5.67    0.47    20.29    9.18    5.99
          Inferred     2.77    7.19    0.64     9.41    8.79    2.66
          Explo-
          ration
          Target     24.34     9.61    7.52     0.00    0.00    0.00
          Indica-
City      ted          0.78    7.58    0.19    15.68    9.64    4.86
          Inferred     0.70    8.00    0.18     8.82    9.27    2.63
          Explo-
          ration
          Target     22.95     9.66    7.13     0.00    0.00    0.00
        Indica-
Village ted            0.53    5.87    0.10    11.50    9.80    3.62
          Inferred     0.17   14.64    0.08     2.77   13.22    1.18
          Explo-
          ration
          Target     13.57    10.57    4.61     0.00    0.00    0.00
Simmers                0.73    8.10    0.19     8.59   10.03    2.77
          Indica-
         ted

         Inferred     0.15    8.29    0.04    1.84   10.48     0.62
         Explo-
         ration
         Target       9.55   10.29    3.16    0.00    0.00     0.00
         Indica-
Other    ted          0.00    0.00    0.00    5.10    2.44     0.40
         Inferred     0.00    0.00    0.00   32.80    5.24     5.52
         Explo-
         ration
         Target      33.67    8.34    5.41    0.00    0.00     0.00
         Measured
Total    Resource     1.33    3.57    0.17    1.47    3.60     0.16
         Indica-
         ted
Total    Resource    16.75    4.88    2.63   85.14    8.40   22.98
         Inferred
Total    Resource     3.79    7.71    0.94   58.26    7.13   13.35
         Explo-
         ration
Total    Target     119.94    8.34   32.16    0.00    0.00     0.00
Grand
Total*              141.81    7.80   35.90 144.87     7.80   36.49

*Totals are based on additional decimal points resulting in
minor total discrepancies.

The main change in Resources during the 2012 year was the
reclassification of approximately 32 million ounces of
Resources deeper than 450 metres to the lower category of
Exploration Target. This change is linked to the rising water
table and the present ability to dewater to that depth. These
Resources can be reverted to their previous higher confidence
category with appropriate arrangements to extend pumping
depth.

The decision to move away from fully mechanised stoping and
adopt a conventional hand-held stoping method required the re-
estimation of Reserves. This was undertaken during March 2012.

SAMREC Compliant Mineral Reserves
                      February 2013            February 2012
                    Tonnes   Grade   Content Tonnes   Grade   Content
Area     Category     (Mt)   (g/t)    (Koz)    (Mt)   (g/t)    (Koz)

CMR
West     Probable     3.55    3.56      407    3.73    4.00       482
CMR
East     Probable     3.79    2.57      313       -       -         -


Total*                7.34    3.05      720    3.73    4.00       482

*Totals are based on additional decimal points resulting in
minor total discrepancies.

Pre-feasibility studies undertaken on CMR East during November
2012 resulted in the declaration of a further 313,000 ounces
of Probable gold Reserves.

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 code. Mr Matier is the Geology
Manager of CRGSA and has over 19 years’ experience in
exploration,   mineral   resource   management  and   mineral
evaluation.

Surface exploration
Exploration focus, through systematic mechanical trenching and
geological mapping and sampling, moved to a new target area
known as the Avon project, approximately four kilometres from
the plant. This resulted in the discovery of between 125,000
and 155,000 tonnes of potential treatable ore.

The table below details the Surface Exploration Target
Inventory as at 31 December 2012. The Exploration Target also
includes an estimate of clean-up residue from the current
stockpile areas and spillage areas in the vicinity of the
decommissioned Bateman plant.

            Vertical
               depth
Area             (m) Category              Tonnes (Mt)   Grade (g/t)

                       Open Pit
Avon West              Exploration
3                   10 Target           3,000 to 6,000   7.0 to 9.0
                    Open Pit
Avon East           Exploration         50,000 to
1                38 Target                 60,000        3.0 to 3.5

                    Open Pit
Avon East           Exploration         12,000 to
2                12 Target                 19,000        2.0 to 2.8

                    Open Pit
Avon East           Exploration         60,000 to
3                38 Target                 70,000        2.5 to 3.5

                    Open Pit
Rom                 Exploration         28,000 to
Cleanup           1 Target                 35,000        1.9 to 2.2



                                       153,000 to
Total                                     190,000   2.6 to 3.3
Note: The potential quantity and grade described by the term
“Exploration Target” is conceptual in nature and there has
been insufficient exploration to define a Mineral Resource. It
is uncertain if further exploration will result in the
definition of a Resource. Further exploration work is ongoing
and includes trial mining and processing of this shallow
target to establish grade and orebody continuity, mineability,
dilution and throughput characteristics.

Operational update
Safety
While Central Rand Gold has had a proud safety record since
its inception, safety was more of a challenge in 2012 than in
the past. A total of 13 lost-time injuries (five in 2011) were
recorded, 12 of which came from underground operations (three
in 2011) and one from the metallurgical plant (two in 2011).
This rise in lost-time injuries was mainly due to the increase
in labour in the fourth quarter of 2012 in order to build up
production to 14,000 tonnes of ore per month.

The accident analysis has indicated that most of the accidents
resulted from rolling rocks and slip and fall accidents.
Measures have been put in place to address this through steep-
stoping hazard awareness training and vigilance in operating,
in line with safety standards. On-face supervision has also
been improved.

Focus on improving safety standards and awareness through
safety programmes has been maintained, including weekly Safety
Forums, daily start of shift safety talks and weekly safety
meetings across the operations to improve safety awareness
throughout the mine. The Company continues to treat safety as
a top priority.

The following table shows overall safety statistics for 2012
(a more comprehensive safety overview is contained in the
Sustainable Development section of the 2012 Integrated Annual
Report):

Type of injury                    2012            2011

Dressing cases                       6               7
Lost-time injuries                  13               5
Incidents                            3              58


Mining operations
The following table shows key mining statistics for 2012,
comparing actual statistics and those achieved in 2011.

                     2012                    2011            Difference

                 Metres              Metres                Metres
                    (m)                 (m)                   (m)
                            Grade                 Grade             Grade
                 Tonnes              Tonnes                Tonnes
Activity            (t)     (g/t)       (t)       (g/t)       (t)   (g/t)

Decline
Sinking (m)           -                  101              (101)

Waste
Development
(m)                 313                   861              (548)

Footwall
Development
(m)                   -                   566              (566)

Reef
Development
(m)                 200       3.6         11      1.6       189       2.0
Total (m)           513                 1,539            (1,026)

Stoping (t)   110,238         4.6      61,391     2.8    48,847       1.5
Reef
Development
and Reef
Intersection
(t)              1,433   4.6    23,979   2.8   (22,546)     1.5

Surface
Mining (t)      91,038   3.1   203,993   3.9 (112,955)    (0.3)
Total
Tonnes         202,709   3.9   289,363   3.6   (86,654)     0.4


Underground mining
Production was mainly in line with targets throughout the year
and underground production was successfully increased to
14,000 tpm in the fourth quarter of 2012. This has increased
our confidence on the sustainability of conventional stoping
and the plan is to increase production and maximise
efficiencies as we develop the mine.

Conventional stoping
2012 was a year that Central Rand Gold used to prove the
conventional stoping concept and this has proven feasible as
targets have consistently been achieved, despite safety being
an issue as a result of steep mining conditions. However,
measures have been put in place to minimise accidents on the
mine by introducing effective steep-stoping standards that
suit our physical mining environment.

Stoping is done by means of hand-held jackhammers using 1.8
metre drill steel to drill 32 millimetre shot holes. The shot
holes are charged with explosives and are blasted at the end
of the day shift. The night shift then cleans the stopes by
means of 55 kilowatt scraper winches and scrapers. The reef is
dropped to the draw-point to be loaded by means of a
combination of a 10 tonne and a 14 tonne Load Haul Dumper onto
the 25 tonne Articulated Dump Trucks. The reef is subsequently
hauled to the stockpiles at the processing plant.

Stope support
Our stope support system is a combination of 180 mm x 20 mm
mine-poles installed 2.0 metres apart on dip and strike and a
line of 1.8 m x 20 mm resin-bolts between each line, also
installed 2.0 metres apart on dip and strike. This has proven
to be effective at the current depth of less than 210 vertical
metres from surface to effectively hold the hanging-wall.
However, towards the middle of the year, 75 cm x 75 cm end-
grain packs were introduced to support friable hanging-wall
areas, when encountered.

Production
Production from underground amounted to 118,058 tonnes for the
year,   which  was   slightly  above   the  Company's   planned
production target of 115,617 tonnes. The production target for
2012 was increased to 14,000 tpm in the last quarter, which
was slightly above the original target of 12,000 tonnes.

Approximately 350,000 tonnes of ore available from stopes
without the necessity of any capital development has been
identified. This will provide some 19-20 months of production
at the current target levels.

Surface mining
2012 Production from slot mining pits:

Pit                          Tonnes       Grade

New Unified                  32,421        3.28

Spencer                      35,077        2.91

Central                      14,245        2.87

Avon                          9,295        3.65
Total                        91,038        3.11


Surface mining performed well during 2012 with an average in-
situ (undiluted) grade of 3.11 g/t and an average stripping
ratio of 1:8 from January to December 2012, which was below
the targeted ratio of 1:10.

There was no surface mining in September and October 2012 as
the Slot 8 pits came to the end of their productive lives. A
prospecting exercise was carried out at the Avon project which
is based in the Langlaagte area. The western side of the pit
at the Avon project yielded good grades over a limited area.
Mining commenced in November 2012 and ended in mid-January
2013 at the point which the good grades were depleted. Then
the eastern part of Avon was immediately started. This pit
will be in production for the rest of 2013 at the current
mining rate.

As at 31 December 2012, there were between 70,000 tonnes and
100,000 tonnes of reef remaining between Avon West and East
pits.
Metallurgical update
The 2012 year saw several fundamental changes and challenges
around the processing plant. In March 2012, modifications were
made to the old Bateman concentrator plant to allow for the
mill to be used independently of the concentrator circuit,
increasing the milling capacity from around 12,000 tpm to
between 16,000 and 20,000 tpm, in line with the anticipated
ramp-up of underground production.

The first six months of 2012 were dedicated to processing soft
oxide ore mined from surface slots, but as these open pits
became deeper, grades dropped off, requiring the change-over
from predominately oxide processing to the treatment of
harder,   but  higher   grade   sulphide   ore  sourced from
underground.

The old Vertical Shaft Impactor (“VSI”) crusher section of the
Bateman concentrator was isolated and modified to allow for
secondary crushing of sulphide ore. This project was completed
during May 2012.

The change-over from oxides to sulphides was, however, not
without challenges. The subtle mineralogical differences
between oxide and sulphide ore created several metallurgical
challenges. July 2012 was essentially a month of pilot trials,
used to tweak the metallurgical process, identify additional
modifications to the system and to optimise the metallurgical
performance of sulphide ore treatment.

As was highlighted in the June 2012 Interim Report, the
greater part of the month of August 2012 saw both ball mills
experiencing major unplanned shutdowns, due in part to the
oxide to sulphide transition process.

Toll treatment of sulphide ore during August 2012 was
accelerated to make up for the production downtime, whilst the
plant   underwent  further   sulphide  process  modifications.
Following this, the process plant was brought back online at
the end of August 2012, fully equipped and ready to process up
to 100% sulphide feed when required. With the identification
of high grade oxide ore from the Avon project, the
sulphide/oxide mix was set at 65:15.

                            January to     July to   January to
                                  June    December     December
                                  2012        2012         2012

Tonnes processed
internally (t)                  93,526      77,584     171,110
Built up head-grade (g/t)         2.15        2.15       2.06

Residue grade (g/t)               0.10        0.15       0.13

Fine gold produced (oz)         6, 076       4,167     10,243



Tonnes processed
externally (t)                  28,119      20,145     48,264

Delivered grade (g/t)             2.31        2.14       2.24

Fine gold produced (oz)          2,170       1,296      3,466


Notwithstanding a good start to the fourth quarter of 2012,
(following a third quarter marked by planned and unplanned
plant shutdowns), the last few days of December 2012 saw the
Bateman Mill experiencing gearbox problems culminating in a
two week shutdown and rectification. Gearboxes have now been
modified to take up the extra load required and the mill has
performed well since.

A planned five day shutdown of the CIP Mill, in order to
replace a worn pinion gear, was extended for a further seven
days upon discovery of a bent pinion coupling shaft requiring
additional fabrication. The mill was returned to full
production on 28 January 2013 and it is hoped that production
targets for both mills will now be consistently achieved.

Major   modifications  to   the  VSI   crushing   circuit were
undertaken during December 2012 and January 2013 with the aim
of replacing the existing open crushing configuration which
required external mobile jaw crushers with a self-contained
closed circuit crushing train. This is intended to optimise
tramming,   eliminate   external  crushing    costs   and most
importantly to minimise fine gold losses during the primary
crushing stage. This gold loss area has been identified as the
main contributor to the sub-par MCF recently experienced.
Batch testing of underground sulphide ore is currently
underway and is generating encouraging results. An initial
combined batch of approximately 3,560 tonnes was processed in
January 2013 and early February 2013 and returned a MCF of 60%
from face to Belt head-grade. A second batch consisting of
approximately 3,000 tonnes processed in February 2013 returned
a much improved MCF of 71%. Batch processing of sulphide ore
will continue until the MCF has achieved a predictable steady
state equilibrium of between 75% and 85%.

Gold production
In 2012, it was disappointing to report that the Company's
gold output fell by 1,147 ounces (or 7.7%) to 13,709 ounces
from 14,856 ounces of gold produced during 2011.

Financial update
Results
Full year net loss reduced by 72% to US$4.5 million (0.28
cents per share) against the prior year's loss of US$16.1
million (1.01 cents per share). This encouraging improvement
is attributed to a number of initiatives including:
- Full year realisation of renegotiated contract mining rates,
  material   and  service   rates  and   head   count resizing
  implemented in mid-2011.
- Focus on extracting ore from already developed areas to
  prove the safety and economics of conventional mining
  methods with resultant lower development costs.
- Continued initiatives to reduce the cost of doing business
  through competitive sourcing.
- Logistics efficiencies from the relocation of the head
  office to the heartbeat of mining activities.
- Metallurgical process improvements to reduce material and
  plant hire costs.
- Stronger realised gold price.
- Profit on redundant asset sales net of impairment of assets
  previously held-for-sale.

However, the aforementioned benefits were partly reduced by
the lower plant availability as we implemented efficiencies
and plant reconfiguration to improve capability to handle hard
rock, reduce gold loss and increase plant capacity from
12,000 tpm to 18,000 tpm. As a result, full year gold
production at 13,709 ounces was 7.7% lower than 2011's 14,856
ounces. Direct cash operating costs averaged US$1,381 per
ounce against the prior year figure of US$1,761. All-in cash
costs averaged US$1,960 per ounce against the prior year's
US$2,476 per ounce.

Cash and cash equivalents
Cash   and   cash   equivalents   balance   is    reported   at
US$4.5 million as at 31 December 2012 (2011: US$5.4 million).

Prospects
During 2013, Central Rand Gold will continue to focus on
improving its MCF to achieve a more sustainable and industry
norm of between 75% and 85%. A further priority will be to
review the suitability of current metallurgical plants that
are being used to process ore on site.

As a result of the TCTA agreement, and the appointment of a
contractor to construct and implement a dewatering facility in
the Central Basin, it is hoped that major inroads will be made
into establishing a long-lasting solution to the AMD problem
that has cast doubt over Central Rand Gold's operations for
the past few years.

Based on the current underground ore production profile of
14,000 tpm being maintained, Central Rand Gold expects full
year gold production in 2013 to be in the range of
14,500 ounces to 15,000 ounces.

However, management is fully aware of the need to move beyond
the production range that had been set during 2011 and 2012
and plans are in place to finalise realistic and sustainable
medium- and long-term growth strategies by June 2013.

At 31 March 2013 the Group had cash and cash equivalents of
US$2.6 million. Since the year end, gold prices have decreased
and while the Directors continue to adopt the going concern
basis in the preparation of the financial statements, further
consideration of this is set out in note 1.1.

Thanks
A big vote of thanks goes to everyone who made a contribution
to the Company during 2012 and to those who continue to be
involved in some way in its day-to-day activities. A special
thank you to the Directors, management, staff, suppliers,
shareholders and community members, all of whom are important
stakeholders and play a vital role in the Company's fortunes.

Johan du Toit
Chief Executive Officer
Statement of financial position as at 31 December 2012

                                                 Group
                                              2012         2011
                                           US$'000     US$ '000
ASSETS
Non-current assets
Property, plant and equipment                4,485        3,460
Intangible assets                            3,874            -
Security deposits and guarantees               262          273
Environmental guarantee investment           4,003        4,058
Loans receivable                             9,560        8,956
                                            22,184       16,747

Current assets
Security deposits and guarantees                79          581
Prepayments and other receivables              952        5,227
Inventories                                  1,241        2,306
Cash and cash equivalents                    4,512        5,376
Non-current assets held-for-sale                 -        2,584
                                             6,784       16,074

Total assets                                28,968       32,821

EQUITY
Attributable to equity holders of the
parent
Share capital                               25,604      25,604
Share premium                              213,377     213,377
Share-based compensation reserve            28,176      28,018
Treasury shares                                (6)         (6)
Foreign currency translation reserve      (28,658)    (28,322)
Accumulated losses                       (231,499)   (226,992)
                                             6,994      11,679
Non-controlling interest                         -           -
Total equity                                 6,994      11,679

LIABILITIES
Non-current liabilities
Environmental rehabilitation and other       6,223        6,038
Loan payable
provisions                                   9,560        8,956
Operating lease liability                        -            -
                                            15,783       14,994

Current liabilities
Trade and other payables                     6,081       4,382
Environmental rehabilitation and other           -           -
Taxation payable
provisions                                     110       1,755
Operating lease liability                        -          11
                                             6,191       6,148
Total liabilities                              21,974   21,142

Total equity and liabilities                   28,968   32,821

Statement of financial performance for the year ended 31
December 2012

                                                 Group
                                              2012        2011
                                           US$'000     US$'000


Other income and gains                      23,208      25,055
Employee benefits expense                  (4,387)     (7,851)
Directors' emoluments                        (959)     (1,078)
Depreciation and amortisation                (589)     (3,416)
Inventory write-down                       (1,010)       (332)
Impairment of assets                       (1,218)       (470)
Operating lease expense                    (1,006)       (533)
Surface mining costs                      (13,723)    (19,266)
Operational expenses                       (4,211)     (2,332)
Other expenses                             (2,582)     (4,187)
Operating loss                             (6,477)    (14,410)
Finance income                               1,331       1,443
                                                      (14,410)
Finance costs                              (1,019)     (1,072)
Foreign exchange transaction losses           (38)     (2,056)
Loss before income tax                     (6,203)    (16,095)
Income tax expense                           1,696           -
                                                      (16,095)
Loss for the year                          (4,507)    (16,095)
                                                      (16,095)
Loss is attributable to:
Non-controlling interest                         -           -
Equity holders of the parent               (4,507)    (16,095)
                                           (4,507)    (16,095)
                                                      (16,095)
Loss per share for loss attributable to the equity holders
during the year (expressed in US cents per share)
Basic loss per share                        (0.28)         (1.01)
Headline loss per share                     (0.29)         (1.01)
Diluted loss per share                      (0.28)         (1.01)
Statement of comprehensive income for the year ended 31
December 2012

                                                 Group
                                              2012        2011
                                           US$'000     US$'000

Loss for the year                          (4,507)    (16,095)
                                                      (16,095)
Other comprehensive loss:
Exchange differences on translating
foreign operations                           (336)        (1,367)
Other comprehensive loss for the period,
net of tax                                   (336)     (1,367)
Total comprehensive loss for the period    (4,843)    (17,462)

Total comprehensive loss is attributable
to:
Non-controlling interest                         -           -
Equity holders of the parent               (4,843)    (17,462)
                                           (4,843)    (17,462)
                                                     (17,(1746
                                                      (17,462)
                                                        2)462)

Statement of changes in equity for the year ended 31 December
2012

                         Attributable to equity holders of the
                                         Group



                         Ordinary          Share-based
                            share   Share compensation   Treasury
                          capital premium      reserve     shares
                         US$'000 US$'000       US$'000   US$'000
Balance at 31 December
2010                      25,604 213,377        27,925        (6)
Total comprehensive
income for the year
Loss for the year              -        -            -           -
Other comprehensive
income
Foreign currency               -        -            -           -
adjustments
Transactions with
owners, recorded
directly in equity
Employee Share Option
Scheme:
Share-based payments:
Employees' and
Directors' shares and
options                        -        -           93           -
Balance at 31 December
2011                      25,604 213,377        28,018        (6)
Total comprehensive
income for the year
Loss for the year              -        -            -           -
Other comprehensive
income
Foreign currency               -        -            -           -
adjustments
Transactions with
owners, recorded
directly in equity
Employee Share Option
Scheme:
Share-based payments:
Employees' and
Directors' shares and
options                       -       -            158         -
Balance at 31 December   25,604 213,377         28,176       (6)
2012

                     Attributable to equity
                      holders of the Group




                    Foreign                        Non-
                   currency                     Contro-
                   transla-   Accumu-             lling
                       tion     lated             inte-    Total
                    reserve    losses     Total    rest   equity

                    US$'000   US$'000   US$'000 US$'000   US$'000
Balance at 31
December 2010      (26,955) (210,897)  29,048        -    29,048
Total
comprehensive
income for the
Loss for the year
year                      - (16,095) (16,095)        - (16,095)
Other
comprehensive
income currency
Foreign
adjustments         (1,367)         - (1,367)        -    (1,367)
Transactions with
owners, recorded
directly in equity
Employee Share
Option Scheme:
Share-based
payments:
Employees' and
Directors' shares         -         -      93        -         93
and options
Balance at 31
December 2011      (28,322) (226,992)  11,679        -    11,679
Total
comprehensive
Loss for the year
income for the            -   (4,507) (4,507)        -    (4,507)
year
Other
comprehensive
Foreign currency
income                (336)         -   (336)        -      (336)
adjustments
Transactions with
owners, recorded
directly in equity
Employee Share
Option Scheme:
Share-based
payments:
Employees' and
Directors' shares                         158               158
                          -         -               -
and options
Balance at 31
December 2012        (28,658)  (231,499) 6,994      -      6,994

Statement of Cash Flow for the year ended 31 December 2012

                                                 Group
                                              2012        2011
                                           US$'000     US$'000
CASH FLOWS FROM OPERATING ACTIVITIES


Loss before tax                            (6,203)    (16,095)

Adjusted for :

Depreciation and amortisation                  589       3,416

Bad debts written off                            -            -

Employment benefit expenditure (share-
based payments)                                158           93

Profit on disposal and scrapping of
property, plant and equipment                 (54)       (991)

Impairment of inventory                        595           332

Impairment of assets                         1,218           470

Net loss on foreign exchange                    38       2,056

(Decrease)/increase in operating lease
liability                                     (11)            7

Sundry income                                (380)       (510)

Finance income                             (1,331)     (1,443)

Finance costs                                1,019       1,072

Changes in working capital

Decrease in prepayments and other
receivables                                    401       4,887

Decrease/(increase) in inventory               470     (2,431)

Increase/(decrease) in trade and other
payables                                     1,699     (4,502)

Increase in provisions                         185           812

Cash flows from/(used in) operations       (1,607)    (12,827)
Finance income                                324        395

Finance costs                                (13)       (24)

Sundry income                                 380        581

Net cash from/(used in) operating
activities                                  (916)   (11,875)



CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of property, plant and
equipment                                   (227)   (2,387)

Proceeds from disposal of property, plant
and equipment                                 287     4,756

Decrease in security deposits                   -     1,070

Net cash (used in)/from investing
activities                                     60     3,439



CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of borrowings                         -        (6)

Net cash used in financing activities           -        (6)



Net decrease in cash and cash equivalents   (856)   (8,442)

Cash and cash equivalents at 1 January      5,376    14,624

Effects of exchange rate fluctuations on
cash balances                                 (8)     (806)

Cash and cash equivalents at 31 December    4,512     5,376
Basis of preparation and general information

1.   General information
These are the non-statutory financial statements, extracted
from the Group annual financial statements for the year ended
31 December 2012.

Central Rand Gold Limited (“Central Rand Gold”) is a Guernsey
incorporated company and it is also registered in South Africa
as an external company. One of its subsidiaries, Central Rand
Gold (Netherland Antilles) N.V. (“CRGNV”), was incorporated in
the Netherlands Antilles. Central Rand Gold's operating
subsidiary is Central Rand Gold South Africa (“CRGSA”). Central
Rand Gold has a primary listing on the London Stock Exchange
(“LSE”) and a secondary listing on JSE Limited (“JSE”).

Central Rand Gold complies with the company laws of its place
of incorporation being Guernsey and the company laws of the
place of its external registration being South Africa. One of
its subsidiaries, CRGNV, is incorporated in the Netherlands
Antilles, therefore the Group is also impacted by the company
laws of the Netherlands Antilles.

The Group's annual financial statements for the year ended 31
December 2012 were approved for issue on 26 April 2013. The
auditor has issued his opinion on the Group's financial
statements for the year ended 31 December 2012 which is
unmodified but does contain an emphasis of matter paragraph in
respect of the matters referred to under note 2 "Going
concern" and is available for inspection at the Company's
registered address.

Emphasis of matter – Going concern
In forming our opinion on the financial statements, which is
not modified, we have considered the adequacy of the
disclosures set out in note 1.1 to the financial statements
concerning the Group's ability to continue as a going concern
which depends, in particular, upon a number of key factors
such as sustainable gold price and minimum mine call factor.
These factors, together with the other matters explained in
note 1.1, indicate the existence of material uncertainties
that may cast significant doubt on the Group's ability to
continue as a going concern. The financial statements do not
include the adjustments that would result if the Group was
unable to continue as a going concern.

2.   Basis of preparation

The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards
and Interpretations (collectively “IFRS”) issued by the
International Accounting Standards Board (“IASB”) as adopted
by the European Union (“EU”).


The consolidated financial statements are presented in
United States Dollars (“US$” or “US Dollar”) and rounded to
the nearest thousand. The functional currency of the parent
company, Central Rand Gold Limited, is British Pound
Sterling (“£”) and the functional currency of its principal
subsidiary, Central Rand Gold South Africa (Proprietary)
Limited (“CRGSA”) is South African Rand (“ZAR” or “Rand”).


Going concern

The Directors have prepared the financial statements on the
going   concern   basis   having   considered  the   current
operations, the current funding position and the projected
funding requirements for the business for at least 12 months
from the date of approval of the financial statements as
detailed below.

At 31 December 2012, the Group had cash of US$4.5 million.
At 31 March 2013, the Group had cash of US$2.6 million, the
decrease resulting from lost gold production due to poor
plant availability, related higher than planned repair costs
and lower realised mine call factor. The Directors have
initiated action plans to improve mine call factors and gold
production through an improved mine blasting approach in
thin reef areas, toll treatment agreement and improved
sorting.


The Directors have prepared cash flow projections until 2020
that reflect the current mine plan adopted by the Directors.
The mine plan is based on mining taking place above the
environmental critical level and is therefore unaffected by
the rising water table. These projections show that the
Group has sufficient funding for at least the next 12 months
from the date of approval of these financial statements and
hence the Directors have prepared the financial statements
on a going concern basis.


The cash flow projections are most sensitive to changes in
the gold price and mine call factor assumptions (the mine
call factor is the ratio, expressed as a percentage, of the
total quantity of recovered and unrecovered mineral product
after processing with the amount estimated in the ore based
on sampling). An average mine call factor of 70% and a gold
price of US$1,400 are included in the projections for the 12
month period from the date of approval of these financial
statements. Any changes to these assumptions, individually
or in aggregate, may alter the going concern conclusion and
a reasonably plausible change in the assumptions may result
in the Group not having sufficient funding available for the
business for the 12 month period from the date of approval
of these financial statements. For example, if the gold
price assumption is reduced to US$1,380 for the 12 month
period and the mine call factor declines to 60% then this
may result in the Group not having sufficient funding for
the 12 month period from the date of approval of these
financial statements. As set out above management is
currently considering alternatives to reduce this risk
arising from the mine call factor.


In addition, the risk inherent in any early-stage mining
operation will continue to apply to the Group, in
particular, the consistent availability of the metallurgical
plant and machinery.


Conclusion

The continued uncertainty around the mine call factor and
future gold price are material uncertainties that may cast
significant doubt on the Group's ability to continue as a
going concern and it may therefore be unable to realise its
assets and discharge its liabilities in the normal course of
business.


Nevertheless, after taking account of the Group's funding
position and its cash flow projections and having considered
the   risks   and   uncertainties  associated   with   these
projections, the Directors have a realistic expectation that
the Group has adequate resources to continue in operational
existence for at least 12 months from the date of approval
of these financial statements. For these reasons, they
continue to prepare the financial statements on a going
concern basis. These financial statements do not include any
adjustment that would result from the going concern basis of
preparation being inappropriate.


3.   Accounting policies
The accounting policies have been consistently applied to
all years presented.

(a) New and amended standards adopted by the Group

The Group has adopted the following new and amended IFRSs as
from 1 January 2012:

In 2012 the Group adopted the amendments to           IFRS 7
„Disclosures – Transfers of Financial Assets' and      IAS 12
Deferred Tax: Recovery of Underlying Assets. These    have no
significant impact for the Group's profit for the     period,
net assets or cash flows.

(b) New standards, amendments and interpretations to not yet
adopted

A number of new standards, amendments to standards and
interpretations are effective for annual periods beginning
after 1 January 2012, and have not been applied in preparing
these consolidated financial statements. Those which may be
relevant to the Group are set out below. The Group does not
plan to adopt these standards early.

The amendments to IAS 19 "Employee Benefits" are effective
for accounting periods beginning on or after 1 January 2013
and were endorsed by the EU in June 2012. The adoption of
the IAS 19 amendments is not expected to have a significant
impact on the Group's net assets.

The interpretation of “IFRIC 20 Stripping costs in the
production phase of a surface mine” requires production
stripping costs in a surface mine to be capitalised if, and
only if certain criteria are met. The stripping activity
asset is recognised and accounted for as a component of the
mining assets to which it relates. The adoption of IFRIC 20
is not expected to have a significant impact upon the
Group's net results or net assets.

IFRS 9 'Financial Instruments' was reissued in October 2010.
It   is  applicable   to  financial   assets  and  financial
liabilities. For financial assets it requires classification
and measurement in either the amortised cost or the fair
value category. For a company's own debt held at fair value,
the standard requires the movement in the fair value as a
result of changes in the company's own credit risk to be
included in other comprehensive income. It is effective for
accounting periods beginning on or after 1 January 2015. The
standard has not yet been endorsed by the EU. The adoption
of IFRS 9 is not expected to have a significant impact upon
the Group's net results or net assets.

IFRS 10 'Consolidated Financial Statements', IFRS 11 'Joint
Arrangements', IFRS 12 'Disclosure of Interests in Other
Entities' and IFRS 13 'Fair Value Measurement' were issued
in May 2011, along with consequential amendments to IAS 27
'Separate Financial Statements' and IAS 28 'Investments in
Associates and Joint Ventures'. The new and revised
standards were endorsed by the EU in December 2012, with an
effective date of 1 January 2014 (except for IFRS 13 which
has an effective date 1 January 2013) but with early
adoption permitted. The Group does not intend to adopt the
new and revised standards from 1 January 2013. The adoption
is not expected to have a significant impact upon the
Group's net results, net assets or disclosures.

The amendments to IAS 1 'Presentation of Items in Other
Comprehensive Income' and amendments to IAS 32 and IFRS 7 on
offsetting financial assets and liabilities are effective
for accounting periods beginning on or after 1 July 2012,
and 1 January 2014 (IAS 32) and 1 January 2013 (IFRS 7)
respectively. They are not expected to have a significant
impact upon the Group's net results, net assets or
disclosures. These amendments were endorsed by the EU in
2012.

4.   Directorate

During the financial period under review, the composition of
the Board of Directors remained unchanged as follows:

Name                           Position
Mr John Michael McMahon        Non-executive Chairman
Mr Johan du Toit               Chief Executive Officer
Mr Patrick Malaza              Financial Director
Mr Miklos Salamon              Non-executive Director

5.   Segment reporting

An operating segment is a component of an entity that
engages in business activities from which it may earn
revenues and incur expenses, whose operating results are
regularly reviewed by the entity's chief operating decision
maker to make decisions about resources to be allocated to
the segment and assess its performance, and for which
discrete financial information is available. The entity's
chief operating decision maker reviews information in one
operating segment, being the acquisition of mineral rights
and data gathering in the Central Rand Goldfield of South
Africa, therefore management has determined that there is
only one reportable segment. Accordingly, no analysis of
segment revenue, results or net assets has been presented.
No corporate or other assets are excluded from this segment.

6.   Share-based payments

During the year, no further share options were granted to
employees.

7.   Dividends

No dividends were declared or paid during the year under
review.

8.   Reconciliation   between   loss    and   headline     loss
     attributable to equity holders of the Group

                                            Group
                                         2012              2011
                                          US$               US$
Loss attributable to ordinary
equity holders of the Group          (4,506,916)    (16,095,311)
Plus: Loss on measurement of
non-current assets held-for-
sale to fair value, less costs
to sell                                      -           939,505
Less: Profit on disposal of
property, plant and equipment            (53,962)       (990,697)
Loss used in calculating
headline loss per share               (4,560,878)    (16,146,503)

9.   Events occurring after reporting date

No material changes, other than those highlighted in this
report, have occurred in the affairs of the Group between
the end of the financial year and the date of this report.
Issued on behalf of: Central Rand Gold Limited
Date: 26 April 2013

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