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CENTRAL RAND GOLD LIMITED - Fundraising and Operational Update

Release Date: 23/03/2017 17:30:00      Code(s): CRD       PDF(s):  
Fundraising and Operational Update

Central Rand Gold Limited
(Incorporated as a company with limited liability under the laws of Guernsey, Company Number 45108)
(Incorporated as an external company with limited liability under the laws of South Africa,
Registration number 2007/019223/10)
LSE share code: CRND JSE share code: CRD
(“Central Rand Gold” or the “Company”)

Fundraising and Operational Update


The Board of Directors of Central Rand Gold ("the Board") is pleased to announce that the Company has
raised £300,000 (before expenses) with certain investors, through the issue of 60,000,000 new ordinary
shares (“Placing Shares”) at an issue price of 0.5p per share (“Placing Price”), through its broker,
Brandon Hill Capital (“Brandon Hill”). The funds raised will be used for working capital, building the
concentrator and civil construction. The Placing Shares will rank pari passu in all respects with all existing
ordinary shares in the Company.

Under the terms of the Placing Agreement, the Company has agreed to grant warrants to Brandon Hill
(“Broker Warrants”) over 3,600,000 new ordinary shares (representing 6 per cent of those Placing Shares
allotted to investors as introduced by Brandon Hill). Each Broker Warrant entitles Brandon Hill to
subscribe for one new ordinary share at the Placing Price per ordinary share. The Broker Warrants may
be exercised within three years from the admission date of the Placing Shares.

As announced on 10 January 2017, the Company entered into a loan agreement with Mr Jia Bang Wang
of US$1 million. With the first tranche of US$500,000 having been received, the Company expects the
second tranche of US$500,000 to become available by 31 March 2017.

Application has been made for the 60,000,000 new ordinary shares to be admitted to trading on AIM
("Admission"). Admission is expected to occur on 29 March 2017. Following admission of the Placing
Shares, the Company's enlarged issued share capital will comprise 295,633,285 ordinary shares with
voting rights. This figure of 295,633,285 ordinary shares may be used by shareholders in the Company
as the denominator for the calculations by which they will determine if they are required to notify their
interest in, or a change in their interest in, the share capital of the Company under the Disclosure Rules
and Transparency Rules of the United Kingdom Listing Authority.

Operational Update

The Company continues to work on executing the strategy of installing centrifugal concentrators. The
anticipated date of commission thereof is the third quarter of 2017. As previously announced, the
concentrator equipment has been ordered from China and the Company expects delivery to South Africa
to occur in mid-April 2017.

In the short-term, the Company is taking steps to ensure stable feedstocks to its metallurgical plant,
including open pit mining and third party batch toll treatment materials targeting continued gold production
and margin improvements. The Company started open pit mining in slot 4 of the Kimberley reef from 1
March 2017, which is approximately 2 kilometres from its own metallurgical plant. A contractor is engaged
to assist the mining, loading and transportation of the open pit materials. The Company expects to update
the market once more data covering a longer period is available.

For further information, please contact:
Central Rand Gold                                                                     +27(0) 87 310 4400
Lola Trollip

ZAI Corporate Finance Limited – Nominated Adviser                                   +44 (0) 20 7060 2220
John Treacy / Jamie Spotswood

Brandon Hill Capital Limited – Broker                                                +44 (0)20 3463 5000
Alex Walker / Jonathan Evans / Wei Jiao

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

23 March 2017

Merchantec Capital

The information communicated in this announcement is inside information for the purposes of Article 7 of
Market Abuse Regulation 596/2014 ("MAR").

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