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Release Date: 15/08/2014 08:00:00      Code(s): CRD       PDF(s):  
2014 Interim Report

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

2014 Interim Report

Central Rand Gold, the South African gold mining and exploration holding company, today announces
its unaudited Interim Results for the six months ended 30 June 2014 (“period under review”). The full
set of results is available on the Company’s website: www.centralrandgold.com.

For further information, please contact:

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

Charles Stanley Securities                                             +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 Proprietary Limited                       +27 (0) 11 506 7351
Jenni Newman

15 August 2014

Forward-looking statements

This Interim Report contains certain forward-looking statements with respect to the financial
condition, results of operations and business of the Central Rand Gold Group. The words “intend”,
“aim”, “project”, “anticipate”, “estimate”, “plan”, “believe”, “expect”, “may”, “should”, “will”, or
similar expressions, commonly identify such forward-looking statements. Examples of forward-
looking statements in this Interim Report include those regarding estimated Ore Reserves, anticipated
production or construction dates, costs, outputs and productive lives of assets or similar factors.
Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other
factors set forth in this Interim Report that are beyond the Group’s control. For example, future Ore
Reserves will be based in part on market prices that may vary significantly from current levels. These
may materially affect the timing and feasibility of particular developments. Other factors include the
ability to produce and transport products profitably, demand for our products, the effect of foreign
currency exchange rates on market prices and operating costs, and activities by governmental
authorities, such as changes in taxation or regulation, and political uncertainty.

In light of these risks, uncertainties and assumptions, actual results could be materially different from
any future results expressed or implied by these forward-looking statements, which speak only as at
the date of this Interim Report. Except as required by applicable regulations or by law, the Group does
not undertake any obligation to publicly update or revise any forward-looking statements, whether as a
result of new information, or future events. The Group cannot guarantee that its forward-looking
statements will not differ materially from actual results.

Chief Executive Officer’s report

Key salient features during the first six months of the year
-   Revenue of US$5.77 million (2013: US$8.80 million).
-   Loss before taxation reduced in the period to US$2.84 million (2013: US$4.87 million).
-   The water table has been stabilised due to the commissioning of the High Density Sludge (“HDS”)
    plant. The increase in pumping volumes, in August 2014, is expected to accelerate the drop in the
    water table.
-   Doubling of resource base to 9.9 million ounces (“Moz”) recognises the ability of the HDS plant to
    dewater the Central Basin.
-   Lower gold production due to lower feed grade from underground operations and lower reliance
    on toll treatment. Improvements reported in mine call factor (“MCF”) and metallurgical
-   Commissioning of Mill 3 increasing production throughput by 55%.
-   Temporary reduction in underground mine production, due to high water level.
-   Access to new mining area, with surface and underground potential, to supplement lower
    production from underground mining.


Safety Statistics
 Type of injury                 Six months ended          Six months ended
                                    30 June 2014              30 June 2013
 Dressing cases                                6                         4
 Lost-time injuries                            4                        12
 Fatalities                                    1                         -

The greatest disappointment during the first half of the 2014 financial year was our first fatality, in
May 2014, from underground operations. All underground operations were stopped for 10 days, whilst
an extensive investigation was carried out. The Company has embarked on a company-wide safety
culture review, re-training of employees and supervisors, and also the review of the operating
standards to objectively address and minimise as far as reasonably practicable all accidents, and
especially accidents that may result in a fatality.

Acid Mine Drainage (“AMD”)

After a five-month delay in the start-up of the HDS plant, we were greatly relieved when Trans
Caledon Tunnel Authority ("TCTA") commenced with pumping and treatment operations of its HDS
plant on 28 May 2014. Up to that point, no other means was available to dewater the Central Basin,
and due to a very wet summer, the rate of rise in the Central Basin was accelerated. Since
commissioning, the HDS plant has undergone a thorough commissioning phase under the guidance of
TCTA. During the commissioning phase, no ‘fatal flaws’ in the design of the HDS plant were
identified. However, the HDS plant did experience typical ‘teething issues’, which resulted in TCTA
operating the HDS plant initially at a reduced rate, with only one of the two submersible pumps
running at any given time. TCTA stabilised the plant at the end of June 2014, and started running the
plant at around 48 million litres per day (“mlpd”) during July 2014. The water table remained
relatively stable during this time at around 160 metres below surface (“mbs”). As at the end of July
2014, pumping was increased to 60 mlpd and the target is to increase the pumping rate to 72 mlpd, by
early August 2014. It remains too early to fully understand the de-watering trend of the Central Basin.


With our mining operations established at 225 mbs, the increase in the water table above this level to
around 160 mbs has undoubtedly had an impact on the mining operations. Mining operations have
been limited to within the narrow band of 100 mbs to 160 mbs. Mining of the main reef within this
mining band remains limited, due to the shallower oxides ground conditions. The Company is
currently targeting new development to access unmined main reef areas.

Additionally, two pay-shoots on the North Reef which have been identified; an unmined reef package
approximately 10 metres below the Main Reef mining target area. If mining results remain positive,
this could add an additional mining target to Central Rand Gold’s portfolio, as the North Reef has
remained largely unmined, across the entire Mining Right area. Recognising the current mining
limitations, and until the water table drops substantially, Central Rand Gold has reduced the
underground production target at its CMR mining operation from 14,000 tonnes per month (“tpm”) to
4,500 tpm. The Company is in the process of reducing its current staffing numbers to account for these
new targets.

Central Rand Gold has also obtained access to an additional mining area. The area has very exciting
underground and surface mining potential. Central Rand Gold will initially target the surface potential
and believes the area has the production capability for an amount in excess of 10,000 tpm. The
Company plans to supplement the current reduction in underground mining with the above material.

Production statistics

                    30 June 2014  30 June 2013         Variance
                          tonnes        tonnes
 Underground              66,085        72,956          (6,871)
 Surface                  22,076        57,260         (35,184)
 Total                    88,161       130,216         (42,055)

Underground mining

Underground mining production was in line with the plan during the first quarter. In the second
quarter, however, considerable face length was lost due to flooding by rising AMD levels.
Underground mining production was also impacted by the stoppage of underground mining activities
by the DMR, as a result of the fatal accident that occurred at the Company’s operations in the month
of May. These factors together had the effect of reducing mining production by 9% compared to the
first half of the previous year.

Surface mining

Open pit mining only recommenced, in line with planning, in the second quarter of the year. The
mining target for the second half of the year is a monthly target of 10,000 reef tonnes per month and it
is envisaged that we can mine open pit resources until the end of the year.


Primary Crushing Circuit

The primary jaw crusher and static screen has been successfully commissioned and is performing
according to the required specification. The circuit allows for primary crushing of both oxide and
sulphide at rates exceeding that required by the secondary crusher, allowing for a substantial buffer of
crushed secondary ore feed, enabling reliable continuous operations.

Secondary Crushing Circuit Upgrade

The leased secondary Chameleon crusher continues to struggle with availability, which has placed the
Company under pressure to produce adequate fines for the mills. Major areas of concern are the
lubrication and filter system and ensuring that the feed material is free of any tramped steel and wood.
Central Rand Gold has decided to design and run its own secondary crushing circuit that will mainly
comprise a Symons 4 1/4 short head cone crusher within a closed circuit configuration. We expect this
to be operational by the end of the third quarter of 2014.

Milling capacity

A highlight for the first half of the year was the commissioning in May 2014 of Mill 3, which is a
9x10 feet Ball Mill with a capacity of 10,000 tpm. Predictive mill-modelling indicates a throughput
capability of 17 tonnes per hour (“tph”) which, when combined with the Company’s two existing ball
mills, is targeted to increase capacity by at least 55% to 25,000 tpm, which is in line with planned
mining production following dewatering to below 225 mbs. The table below summarises the
throughput characteristics of the Company’s three individual mills from May 2014:

                                                 Nameplate            Designed              Monthly
 Mill                        Dimension      Feed Rate (tph)         Uptime (%)       Capacity (tpm)
 Mill 1
 (Bateman Mill)               7 x 10ft                   7                 85%               4,200
 Mill 2
 (CIL Mill)                   9 x 12ft                22.5                 85%              13,700
 Mill 3
 (New Mill)                   9 x 10ft                  17                85%               10,400

The increased feed capacity generated by Mill 3 significantly reduces the pressure on the existing
milling circuit. This enables a more proactive and effective maintenance programme to be conducted,
which in turn improves productivity and plant availability. It is anticipated that the increased milling
capacity and availability will reduce the Company’s reliance on external tolling, which will improve
both revenue generation and operating margins. In addition, the discrete configuration of the milling
units allows for preferential milling campaigns of ore feeds of different characteristics. As previously
announced, the Company is in the process of upgrading its downstream leaching capacity. Until these
upgrades come on stream, monthly production will be carefully managed, at approximately 20,000
tpm, to ensure that metallurgical recoveries do not deteriorate.

Optimisation of existing mills

In mid-January 2014, the Company initiated a pro-active refurbishment and maintenance programme
on the existing mills (“Maintenance Program”) with the objective of improving productivity and
increasing mill availability. The Maintenance Programme has enabled the Company to migrate from a
reactive maintenance strategy, where items were replaced post breakage, to a pro-active maintenance
strategy, where components are closely monitored (through data analysis) and repaired or replaced
before breakages or failures occur. Although the Maintenance Programme is a long-term initiative,
results recorded over the last six months have been positive, with a significant increase in milling unit
availabilities being recorded since inception. The following table indicates the step change in
availability since the Maintenance Programme was launched in mid-January.

Period                      (%)
 January 2014              67.9
 February 2014             90.0
 March 2014                89.6
 April 2014                87.9
 May 2014                  90.7
 June 2014                 91.6

The focus for the remainder of 2014 will be to ensure that plant availability will remain above 90%.
The Company is also pleased to report that the long awaited replacement gearbox and spare trunnion
bearings for Mill 2 have been received and there are plans to install the gearbox during the second half
of 2014. Once installed, the ball charge of Mill 2 will be increased to the designed 30%, which will
increase Mill 2 capacity from 17 tph to the designed 22.5 tph.

Elution, leaching and thickening

As part of the total plant capacity upgrade, the Company has, besides the new mill, also embarked on
changes to its thickening, leaching and elution circuits.

The elution circuit was upgraded with a higher capacity elution heater and the installation of a new
elution column. For the more expensive leach and thickening circuits, Central Rand Gold also opted to
utilise ‘fit for purpose’ available second-hand equipment as opposed to new equipment. The Company
acquired three additional leach tanks and a 12m thickener that was initially planned to be
commissioned during the second quarter of 2014. The additional thickener and leach tanks acquired
will provide leach capacity in excess of 30,000 tpm. Good progress is being made with the installation
of the first leach tank which is expected to be commissioned by mid-August 2014.

The completion of the 12m thickener has been postponed until the last quarter of 2014 due to a delay
in the decommissioning and transport of the thickener from its current location. To compensate for the
delay, a 7,500 tpm thickener was commissioned at the end July 2014. This now provides the Company
with 27,500 tpm thickening capacity. Once the 12m thickener has been installed, the 7,500 tonnes
thickener will be converted to a water clarification plant, which will further reduce the reliance on
expensive municipal water. To date, Central Rand Gold has achieved a significant reduction of 63%
from the last quarter of 2013 to the second quarter of 2014, on monthly reliance on municipal water.
This has been made possible by focussing on the efficient usage and recycling of mine water.


                                                                    2014                  2013
                                                                 January               January
                                                                 to June               to June
 -      Tonnes processed (t)                                      80,749                77,791
 -      Built up head grade (g/t)                                   1.77                  1.91
 -      Fine gold produced (oz)                                    3,205                 4,246

 External (Toll treatment)
 -      Tonnes processed (t)                                      13,902                32,979
 -      Delivered grade (g/t)                                       2.35                  1.87
 -      Fine gold produced (oz)                                      944                 1,851
 Total tonnes processed (t)                                       94,651               110,770
 Total gold produced (oz)                                          4,149                 6,097

Gold production was impacted by the reduction in mining area during the first six months of the year
due to rising AMD and as a result the Company was forced to mine shallower and lower grade mining
channels. This had an adverse effect on gold production for the first half. The Company also reduced
its reliance on the higher cost toll treatment option, rather processing its ore through its own plant.
This was partly offset by higher throughput due to the commissioning of the new mill which started up
in May 2014, the monthly production throughput increased from an average of 13,000 tpm to 18,000
tpm in June 2014. The benefits of the additional throughput will only be realised during the second
half of 2014. Another key factor that reported a great improvement was on the face to pour MCF. The
MCF for 2013 was calculated at 71%, averaging just under the South African industry mean of 75%.
The MCF for the year to date (ending June 2014) has been calculated at 82%, a substantial
improvement in operating efficiency and better utilisation of plant.


Mineral Resources

The installation of the Ritz high capacity AMD pumps in March 2014, and the subsequent
commissioning of the HDS plant on 23 May 2014, has enabled the Company to re-evaluate its Mineral

Economic capital and operating cost studies have shown that further de-watering beneath the 450
metre level can be done efficiently and economically. With the installation of additional pumps and
piping, this hurdle for “eventual economic extraction”, a key aspect in the definition of ‘Mineral
Resources’ in terms of the SAMREC Code, can be satisfied.

This has allowed the Company and the Independent Competent Person, Venmyn Deloitte, to re-rate
the gold mineralisation between 450 metres and 900 metres below surface from “Exploration Target”
to “Mineral Resource”. This reclassification has more than doubled the resource base of the Company
from 4.51 Moz to 9.90 Moz of contained gold.

SAMREC Compliant Mineral Resources

                          July 2014                       February 2014
                          Tonnes      Grade    Content    Tonnes    Grade      Content
Area        Category
                            (Mt)       (g/t)    (Moz)        (Mt)     (g/t)      (Moz)
CMR         Measured        1.46        3.65     0.17        1.46      3.65       0.17
            Indicated      14.43        4.22     1.97       11.30      4.53       1.64
            Inferred        5.64        6.65     1.23        4.34      5.60       0.78
            Target         12.02        9.26     3.59       15.86      8.49       4.33
Crown       Indicated       5.78        5.83     1.11        2.58      5.67       0.47
            Inferred        3.11        8.03     0.80        2.77      7.19       0.64
            Target         20.81       10.07     6.73       24.34      9.61       7.52
City        Indicated       2.88        6.97     0.63        0.78      7.58       0.19
            Inferred        2.43        6.99     0.55        0.70      8.00       0.18
            Target         19.12        9.66     6.32       22.95      9.66       7.13
Village     Indicated       1.80        6.48     0.39        0.53      5.87       0.10
            Inferred        0.20       13.60     0.10        0.17     14.64       0.08
            Target         12.27       10.93     4.30       13.57     10.57       4.61
Simmers     Indicated       1.53        8.80     0.43        0.73      8.10       0.19
            Inferred        0.15        8.20     0.04        0.15      8.29       0.04
            Target          8.75       10.35     2.92        9.55     10.29       3.16
Other       Indicated       3.16        1.22     0.13           -         -          -
            Inferred       20.47        3.61     2.36           -         -          -
            Exploration    10.04        9.07     2.92       33.67      8.34       5.41
Total       Resource        1.46        3.57     0.17        1.46      3.57       0.17
Total       Resource       29.58        4.85     4.66       15.92      5.06       2.59
Total       Resource       32.00        4.92     5.08        8.13      6.58       1.72
Total       Target         83.01       10.03    26.78      119.94      8.34      32.16
Total*                    146.05        7.80    36.69      145.45      7.84      36.64

Note: Rounding may result in minor computational discrepancies. 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 and 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 ore body continuity, mineability, dilution and
throughput characteristics.

This basin wide increase in Mineral Resources will also significantly augment Reserve scheduling and
Pre-Feasibility level studies on adjacent mining targets such as Crown and City Deep.

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 20 years’
experience in exploration, mineral resource management and mineral evaluation.

Financial update


The net loss for the period under review amounted to US$2.84 million (3.78 cents per share) against a
loss of US$4.87 million for the six months ended 30 June 2013 (15.22 cents per share). The loss was
driven by lower head grade and lower reliance on toll revenue during the first half of the year. The
loss was partly mitigated by a focus on the reduction of costs in the following areas:
-   Decrease in production costs through the more effective use of utilities. Water cost was reduced
    by 70% through the more effective use of recycling processed water;
-   Lower staff costs due to the strong focus on reducing contract staff as well as improvements in
    plant availability significantly reduced overtime costs;
-   Significantly lower plant hire costs indicating the benefit of owned primary crushing plant; and
-   Upgrade of current plant resulting in improved availability and operational efficiencies.

As a consequence, all-in cash operating costs per ounce decreased to US$1,987 per ounce (June 2013:
US$2,268) against the prior year’s US$2,425 per ounce.

As at 30 June 2014, the net cash position of the Company stood at US$4.39 million (December 2013:
US$2.48 million).

Looking forward

Over the next six months the following will be the main focus areas for the Company:
-   Underground mining at CMR, which will largely be driven by the progress of the de-watering of
    the Central Basin to 225mbs as well as the grade on the North Reef.
-   The new mining area carries exciting new opportunities and the Company will commence with
    surface mining and will further study the area to identify other target areas and future
    underground potential.
-   The completion of the Metallurgical downstream plant, to enable the operation to process
    optimally around the 25,000 tpm level.

Johan du Toit
Chief Executive Officer

Condensed Group Statement of Financial Position
as at 30 June 2014
                                                      30 June     31 December          30 June
                                                         2014            2013             2013
                                        Notes        US$ '000         US$ '000        US$ '000
                                                  (Unaudited)        (Audited)     (Unaudited)

Non-current assets
Property, plant and equipment            5              4,763            3,619           3,570
Intangible assets                                       3,104            3,131           3,326
Security deposits and guarantees                          210              194             225
Environmental guarantee investment                      3,361            3,338           3,507
Loans receivable                         6              8,961            8,571           8,641
                                                       20,399           18,853          19,269
Current assets
Security deposits and guarantees                           71               70              70
Prepayments and other receivables                       1,004              914           1,239
Inventories                              7                813              910           1,029
Cash and cash equivalents                               4,389            2,475           1,311
Non-current assets held-for-sale         8                  -              174               -
                                                        6,277            4,543           3,649
Total assets                                           26,676           23,396          22,918

Attributable to equity holders of the
Share capital                            9             26,314           25,604          25,604
Share premium                            9            218,630          213,377         213,377
Share-based compensation reserve                       28,187           28,224          28,176
Treasury shares                                           (6)              (6)             (6)
Foreign currency translation reserve                 (29,348)         (29,442)        (29,675)
Accumulated losses                                  (249,133)        (246,291)       (236,370)
                                                      (5,356)          (8,534)           1,106
Non-controlling interest                                    -                -               -
Total equity                                          (5,356)          (8,534)           1,106

Non-current liabilities
Environmental rehabilitation                            5,904            5,713           5,842
Loan payable                             10            19,336           19,091           8,641
                                                       25,240           24,804          14,483
Current liabilities
Trade and other payables                                6,792            6,971           7,235
Taxation payable                                            -              155              94
                                                        6,792            7,126           7,329
Total liabilities                                      32,032           31,930          21,812
Total equity and liabilities                           26,676           23,396          22,918

Condensed Group Statement of Financial Performance
for the six months ended 30 June 2014
                                                       Six months       12 months     Six months
                                                            ended           ended          ended
                                                          30 June    31 December         30 June
                                                             2014            2013           2013
                                              Notes      US$ '000         US$ '000      US$ '000
                                                      (Unaudited)        (Audited)   (Unaudited)

Revenue                                        11           5,774           14,627         8,798
Production costs                               12         (4,856)         (16,344)       (8,977)
Employee benefits expense                                 (1,607)          (3,969)       (2,080)
Directors' emoluments                          13           (434)            (850)         (436)
Inventory write-(down)/up                                    (40)               39         (169)
Operating lease expense                                     (304)            (523)         (280)
Operational expenses                           14           (639)          (1,588)         (868)
Other expenses                                 15           (882)          (2,855)         (994)
Other income and gains                         16             131              622           483
Foreign exchange transaction gains/
(losses)                                                      261            (121)          (27)
Loss before interest, tax and depreciation                (2,596)         (10,962)       (4,550)
Depreciation                                                (226)            (536)         (433)
Impairment of assets                                            -            (224)             -
Loss on fair value of convertible loan note                     -          (3,234)             -
Finance income                                                456            1,287           581
Finance costs                                               (476)          (1,123)         (469)
Loss before income tax                                    (2,842)         (14,792)       (4,871)
Income tax expense                             17               -                -             -
Loss for the period                                       (2,842)         (14,792)       (4,871)
Loss is attributable to:
Non-controlling interest                                        -                -             -
Equity holders of the parent                              (2,842)         (14,792)       (4,871)
                                                          (2,842)         (14,792)       (4,871)
Shares in issue                                        75,180,808      31,993,443     31,993,443
Weighted average number of ordinary
shares in issue                                        75,180,808      31,993,443     31,993,443
Fully diluted weighted average number of
ordinary shares in issue                               75,180,808      31,993,443     31,993,443
Basic loss per share (US cents per share)      19           (3.78)         (46.23)        (15.22)
Diluted loss per share (US cents per share)    19           (3.78)         (46.23)        (15.22)

Condensed Group Statement of Comprehensive Income
for the six months ended 30 June 2014
                                                 Six months        12 months      Six months
                                                      ended            ended           ended
                                                    30 June      31 December         30 June
                                                       2014             2013            2013
                                                   US$ '000         US$ '000        US$ '000
                                                (Unaudited)        (Audited)     (Unaudited)
Loss for the period                                 (2,842)         (14,792)         (4,871)
Other comprehensive income/(loss):
Item that may be reclassified subsequently
to profit or loss
Exchange differences on translating foreign
operations                                               94           (784)          (1,017)
Other comprehensive income/(loss) for the
period, net of tax                                       94           (784)          (1,017)
Total comprehensive loss for the period             (2,748)        (15,576)          (5,888)
Total comprehensive loss is attributable
Non-controlling interest                                  -               -                -
Equity holders of the parent                        (2,748)        (15,576)          (5,888)
                                                    (2,748)        (15,576)          (5,888)

Condensed Group Statement of Changes in Equity
for the six months ended 30 June 2014
                                                   Attributable to equity holders of the Group
                                     Ordinary                Share-based                  Foreign                                      Non-
                                        share       Share   compensation    Treasury     currency    Accumulated                controlling        Total
                              Notes   capital     premium        reserve      shares  translation         losses        Total      interest       equity
                                     US$ '000    US$ '000       US$ '000    US$ '000     US$ '000       US$ '000     US$ '000      US$ '000     US$ '000
Balance at 31 December
2012                                   25,604     213,377         28,176         (6)     (28,658)      (231,499)        6,994            -         6,994
Total comprehensive
income for the period
ended 30 June 2013
Loss for the period                         -          -              -           -            -         (4,871)      (4,871)            -       (4,871)
Other comprehensive
Foreign currency                            -          -              -           -       (1,017)             -       (1,017)            -       (1,017)
Transactions with owners,
recorded directly in equity
Employee Share Option
Share-based payments:
Employees' and Directors'
shares and options                          -          -             -           -            -              -             -            -             -
Balance at 30 June 2013                25,604    213,377         28,176         (6)      (29,675)     (236,370)        1,106            -         1,106

                                               Attributable to equity holders of the Group
                                     Ordinary               Share-based                  Foreign                                     Non-
                                        share       Share   compensation    Treasury    currency   Accumulated                controlling          Total
                              Notes   capital     premium       reserve       shares  translation       losses         Total     interest        equity
                                     US$ '000    US$ '000     US$ '000     US$ '000      US$ '000     US$ '000      US$ '000     US$ '000       US$ '000
Balance at 31 December
2013                                   25,604     213,377       28,224          (6)      (29,442)    (246,291)       (8,534)           -         (8,534)
Total comprehensive
income for the period
ended 30 June 2014
Loss for the period                         -           -             -         -              -       (2,842)       (2,842)           -         (2,842)
Other comprehensive
Foreign currency                            -           -             -         -             94            -            94            -              94
Transactions with owners,
recorded directly in equity
Issue of Shares:
Capital raising                9          710       5,253             -         -             -            -          5,963            -           5,963
Employee Share Option
Share-based payments:
Employees' and Directors' 
shares and options          21              -           -         (37)          -             -            -           (37)           -             (37)
Balance at 30 June 2014                26,314     218,630       28,187        (6)       (29,348)    (249,133)       (5,356)           -          (5,356)

Condensed Group Statement of Cash Flow
for the six months ended 30 June 2014
                                                      Six months       12 months     Six months
                                                           ended           ended          ended
                                                         30 June     31 December        30 June
                                                            2014            2013           2013
                                                        US$ '000        US$ '000       US$ '000
                                                     (Unaudited)       (Audited)     (Unaudited)

ACTIVITIES                                   Notes
Loss before tax                                          (2,842)        (14,792)         (4,871)
Adjusted for :
Depreciation                                                 226             536             433
Employment benefit expenditure (share-
based payments)                                             (37)              48               -
Loss/(profit) on disposal and scrapping of
property, plant and equipment                                  9           (541)           (457)
Impairment of inventory                        7              40            (39)             169
Impairment of assets                                           -             224               -
Net (gain)/loss on foreign exchange                        (261)             121              27
Sundry income                                 16               -               -            (26)
Finance income                                             (456)         (1,287)           (581)
Finance costs                                                476           1,123             469
Loss on fair value of convertible loan note                    -           3,234               -
Changes in working capital
(Increase)/decrease in prepayments and other
receivables                                                 (90)              38           (287)
Increase in inventory                                         57             370              43
(Increase)/decrease in trade and other
payables                                                   (179)             935           1,154
Increase/(decrease) in provisions                            258             974           (381)
Cash flows (used in)/from operations                     (2,799)         (9,056)         (4,308)
Finance income                                                 -               -             114
Finance costs                                               (15)           (245)             (1)
Sundry income                                                  -               -              26
Net cash used in operating activities                    (2,814)         (9,301)         (4,169)
Purchases of property, plant and equipment    5          (2,022)           (839)            (61)
Proceeds from disposal of property, plant
and equipment                                                  -             566              -
Increase in environmental guarantee deposit                 (54)            (60)              -
Net cash used in investing activities                    (2,076)           (333)            (61)
Net proceeds from issue of share capital                   5,963              -               -
Net proceeds from issue of convertible notes                   -           7,027              -
Net cash from financing activities                         5,963           7,027              -
Net increase/(decrease) in cash and cash
equivalents                                                1,073         (2,607)         (4,230)
Cash and cash equivalents at 1 January                     2,475           4,512           4,512
Effects of exchange rate fluctuations on cash
balances                                                     841             570           1,029
Cash and cash equivalents at end of
period                                                     4,389           2,475           1,311

Notes to the Condensed Interim Group Financial Statements
for the six months ended 30 June 2014

1. Basis of preparation

This condensed set of financial statements has been prepared in accordance with IAS 34 Interim
Financial Reporting as adopted by the European Union (“EU”). The annual Financial Statements of the
Group are prepared in accordance with International Financial Reporting Standards and Interpretations
(collectively “IFRS”) issued by the International Accounting Standards Board (“IASB”) as adopted by
the EU. The condensed interim Group financial statements have been prepared applying the accounting
policies and presentation that were applied in the preparation of the Company’s published consolidated
financial statements for the year ended 31 December 2013 except for the changes described in note 2.

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, changed during the prior year from the British Pound to the US Dollar as its main source of
funding is now the US Dollar. The functional currency of its principal subsidiary, CRGSA is the South
African Rand (“ZAR” or “Rand”).

Going concern

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

The Directors have prepared cash flow projections until 2024 that reflect the current mine plan adopted
by the Directors. These projections show that the Group has sufficient funding for at least the next 12
months from the date of approval of these condensed interim Group financial statements and hence the
Directors have prepared the condensed interim Group financial statements on a going concern basis.

Following the successful completion of the Open Offer in January 2014 and Redstone Capital’s exercise
of the options available to it in March 2014, additional funds of US$2.2 million (£1.69 million) and
US$3.4 million (£2.11 million), respectively, were raised. The Directors consider that there is now
adequate funding in place and, based on the current mine plan, no further capital raises are considered
necessary for the life-of-mine.

The Directors are optimistic about the future of the Company and the dewatering may give the Company
improved access to deeper mining levels over time. However, the risks inherent in any single metal
mining operation remain for the longer term.

2. Accounting policies

Except as described below, the accounting policies applied by the Group in these condensed interim
Group financial statements are the same as those applied by the Group in its consolidated financial
statements as at and for the year ended 31 December 2013, as described in those consolidated financial

The Group has adopted the following standards and amendments to standards, including any
consequential amendments to other standards, with a date of initial application of 1 January 2014:
- IFRS 10: Consolidated Financial Statements
- IFRS 12: Disclosure of Interests in Other Entities
- IAS 27: Consolidated and Separate Financial Statements
- IAS 32: Financial Instruments – Presentation
- IAS 36: Impairments of Assets

The adoption of these Standards is not expected to have a significant impact upon the Group’s net
results, net assets or disclosures.

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to
expected total annual earnings.

3. Estimates and judgements

The preparation of condensed interim Group financial statements requires management to make
judgements, estimates and assumptions that affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing this condensed interim Group financial statements, the significant judgements made by
management in applying the Group’s accounting policies and the key sources of estimation uncertainty
were the same as those that applied to the consolidated annual financial statements as at and for the year
ended 31 December 2013.

4. Financial risk management

The Group’s financial risk management objectives and policies are consistent with those disclosed in the
consolidated annual financial statements as at and for the year ended 31 December 2013.

Fair value

The aggregate net fair values of all current financial assets and financial liabilities, as well as non-current
receivables, instalment sales and finance leases approximate the carrying amounts at the financial
reporting date.

Foreign currency rates

The US Dollar rates of exchange applicable to the period are as follows:

                                                     2014                    2013                    2013
                                            Six months to              Year ended           Six months to
                                                  30 June             31 December                 30 June
                                         Closing  Average        Closing  Average       Closing   Average

South African Rand                          0.09     0.09         0.10       0.10         0.10      0.11
Pound Sterling                               1.70    1.67         1.65       1.56         1.52      1.54

5. Property, plant and equipment

During the six months ended 30 June 2014, the Group spent US$1,894,534 to upgrade the plant and
US$127,634 to purchase other items of property, plant and equipment. In the six month period ending 30
June 2013, US$61,276 was spent on the purchase of items of property, plant and equipment.

6. Loans receivable

Puno Gold Investments Proprietary Limited ("Puno")

Since the last report for the year ended 31 December 2013 there has been no resolution to the dispute
relating to alleged procedural breaches of the CRGSA Shareholders’ Agreement between CRGSA and
its current Black Economic Empowerment (“BEE”) shareholder, Puno. The dispute surrounds the
allocation of intercompany loans which fund the budget and work programme and the incurring of, and
level of, certain costs.

During the period under review, the Company was granted the right to appeal the December 2013 ruling.

The Group still believes that ultimately their position will prevail. The Board is still of the opinion that
this will not have any material consequences in respect of the consolidated accounts of the Group.

The loan payable to Puno contains the same allocations referred to above.

7. Inventories
                                                             June           December                June
                                                             2014               2013                2013
                                                          US$ '000           US$ '000            US$ '000

Consumables                                                     80                 130                218
Ore stockpiles                                                 733                 780                811
Total inventories                                              813                 910              1,029

The amount of the write-down of ore stockpiles to net realisable value, and recognised as an expense is
US$881,109 (2013: US$169,183).

8. Non-current assets held-for-sale

At 31 December 2013, the Group classified an item of plant and machinery, being the flotation plant (net
realisable value: US$172,517) as non-current assets held-for-sale. During the six months ended 30 June
2014, the Group disposed the flotation plant for US$161,512, resulting in a loss of US$9,363. No
additional items were classified as held-for-sale during the period under review.

9. Share capital and share premium

On 20 January 2014, the Company allotted and issued 19,196,065 new Ordinary Shares at a price of 8.78
pence per Ordinary Share in the Open Offer raising approximately US$2.61 million (£1.59 million) net
proceeds. On 25 March 2014, Redstone Capital exercised 73.6% of the options available to it following
the Open Offer and had accordingly acquired 23,991,300 shares for a net consideration of US$3.36
million (£2.04 million).

10. Loan payable
                                                           June          December               June              
                                                           2014              2013               2013
                                                       US$ '000          US$ '000           US$ '000
Loan payable consists of the following:

Puno Gold Investments Proprietary Limited                 8,961             8,571              8,641
Redstone Capital Limited                                 10,375            10,520                  -
                                                         19,336            19,091              8,641

11. Revenue
                                                          June           December               June
                                                          2014               2013               2013
                                                      US$ '000           US$ '000           US$ '000

Gold sales                                               5,337             14,627              8,798
Other by-product sales                                     437                  -                  -
                                                         5,774             14,627              8,798

The revenue relates to the sale of gold derived from surface and underground mining activities and the
sale of other by-products. 4,150 (30 June 2013: 5,837) ounces of gold was sold. At the start of the
previous financial year, the sale of gold by the Company met the criteria to recognise revenue per the
Company’s accounting policy. Therefore, revenue from the sale of gold was no longer disclosed as other
income but as revenue.

12. Production costs
                                                           June          December                June
                                                           2014              2013                2013
                                                       US$ '000          US$ '000            US$ '000
Production costs comprise the following items:
- Consumables                                             1,307             3,417               1,969
- Utilities                                                 465             3,135               1,675
- Plant hire                                              1,090             4,027               2,319
- Labour hire                                             1,259             2,803               1,148
- Toll treatment                                            470             1,988               1,225
- Environmental rehabilitation provision                    265               974                 641
                                                          4,856            16,344               8,977

13. Changes to the Board

During the period under review, the composition of the Board changed. Two Independent Non-executive
Directors of the Group, Mr M Salamon and Mr M McMahon, resigned on 1 April 2014 and 16 May 2014
respectively. Mr A Phillips was appointed as an Independent Non-executive Director of the Group on 16
May 2014. Mr P Malaza resigned as Finance Director with effect from 31 July 2014.

14. Operational expenses
                                                              June        December                June
                                                              2014            2013                2013
                                                          US$ '000        US$ '000            US$ '000
Operational expenditure comprises the following items:
- Assaying costs                                               155             550                 232
- Consulting services                                          355             490                 346
- Environmental costs                                            5               5                   -
- Mineral property options paid                                124             543                 491
- Other expenses                                                 -               -               (201)
                                                               639           1,588                 868

15. Other expenses
                                                              June        December               June
                                                              2014            2013               2013
                                                          US$ '000        US$ '000           US$ '000
Auditor's remuneration                                          39             228                128
Corporate social investment                                      2               8                  8
Fees and subscriptions                                         181             203                 56
Insurance and financial services                                95             187                112
Legal costs                                                    140             374                 82
Repairs and maintenance                                         35             158                 53
Security                                                       149             320                163
Travel and accommodation                                         4              37                 18
Information technology                                          65             193                112
Other expenses                                                 172           1,147                262
                                                               882           2,855                994

16. Other income and gains
                                                              June        December               June
                                                              2014            2013               2013
                                                          US$ '000        US$ '000           US$ '000

Sundry income(1)                                               131             622                483
1. Sundry income mainly relates to profit on the disposal of property, plant and equipment and other sundry

17. Income tax expense

Income tax expense is recognised based on management’s best estimate of the weighted average annual
income tax rate expected for the full financial year. The estimated average annual tax rate used for the year
to 30 June 2014 is 0% (2013: 0%) due to assessable losses available to CRGSA and the Guernsey resident
status of CRG LTD resulting in 0% effective rates.

18. Commitments
                                                             June          December               June
                                                             2014              2013               2013
                                                         US$ '000          US$ '000           US$ '000
Fees payable to iProp Limited for prospecting                   -               500                  -
Fees payable to Sekgwa Mining Services
Proprietary Limited for underground mining                    209               245                  -
Acquisition of tangible assets contracted for                  48                 -                  -
                                                              257               745                  -

The only commitments outstanding at 30 June 2014 are similar in nature to those disclosed at the 31
December 2013 year end and are those incurred in the normal course of business.

19. Loss per share
                                                             June         December                June
                                                             2014             2013                2013
Headline loss per share (US cents per share)                (3.76)          (47.93)             (16.65)
Diluted headline loss per share (US cents per share)        (3.76)          (47.93)             (16.65)

Reconciliation between loss attributable to the
equity holders of the Group and the headline
loss attributable to the equity holders of the
Loss attributable to equity holders of the Group
(US$'000)                                                  (2,842)          (14,792)            (4,871)
Add: Loss on disposal of property, plant and
equipment (US$'000)                                              9                -                  -
Less: Profit on disposal of property, plant and
equipment (US$'000)                                              -             (541)              (457)
Headline loss attributable to equity holders of the
Group (US$'000)                                            (2,833)          (15,333)            (5,328)

20. 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.

21. Share-based payments

No additional shares and share options in the Company were granted during the six months ending 30
June 2014.

22. Related parties

No disclosable related party transactions occurred during the period.

23. Contingent liability

There has been a change in the contingent liability since the last annual reporting date. A contingent
liability no longer exists as at 30 June 2014 as the South African Revenue Service (SARS) has settled all
outstanding Vat refunds.

24. 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 half year and the date of this report.

Company profile

Our business

Central Rand Gold Limited (“Central Rand Gold” or “the Company”) is engaged in a gold mining
and exploration project that aims to bring profitable and sustainable gold mining back to the City
of Johannesburg, bringing many benefits to the City, the communities surrounding its mining
operations, its staff, its shareholders and other stakeholders. The Company plans to extract all
profitable gold from its resource base using appropriate mining, processing and environmentally
friendly technologies. Once the mineralised areas are worked out, stabilised and rehabilitated, the
land will become available for urban development.


Central Rand Gold is the holding company for a group of companies (“Group”). Central Rand
Gold listed on the Official List of the UK Listing Authority and the Main Boards of both the
London Stock Exchange (“LSE”) and the JSE Limited (“JSE”) in November 2007, after
consolidating contiguous exploration permits covering approximately 138 square kilometres in
the most prolific gold-producing area of the world – the Central Rand Goldfields on the southern
outskirts of Johannesburg. On 18 September 2013, Central Rand Gold opted to transfer its listing
to AIM in London and to the AltX in Johannesburg.

Mining Rights and Prospecting Rights

The Group acquired seven New Order Prospecting Rights which constitute from west to east,
Western Areas A, B and E, the three Cs (one Prospecting Right for Consolidated Main Reef,
Crown Mines and City Deep), Anglodeeps area, Village Main and Robinson Deep (one
Prospecting Right) and the mining area of the defunct Simmer and Jack Gold Mine. The
Prospecting Rights extend over an area from west to east of approximately 40 kilometres and
north to south of approximately seven kilometres (the “Central Rand Project”). In addition, the
Southern Deeps New Order Prospecting Right Application (the “Prospecting Application”), if
granted, would extend the Central Rand Project by a further 13 kilometres to the south. On 27
February 2012, it was announced that the Prospecting Rights in respect of Western Areas A, B
and E had been transferred from Rand Quest Syndicate Limited (“RQS”) to Central Rand Gold
South Africa Proprietary Limited (“CRGSA”) via Section 11 applications lodged with the South
African Department of Mineral Resources (“DMR”). The Southern Deeps Prospecting
Application is still in the process of being transferred. The Anglodeeps Prospecting Right renewal
was submitted to the DMR but was unfortunately rejected on a technicality. This is currently
being taken on appeal.

The Company received its first New Order Mining Right from the DMR on 17 September 2008.
This Mining Right, which was awarded 14 months after the initial application, enables Central
Rand Gold to mine gold at its Consolidated Main Reef, Langlaagte and Crown Mines tenements.

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