Central Rand Gold : Memorandum of Understanding 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 2007/0192231/10)

ISIN: GG00B92NXM24

LSE share code: CRND JSE share code: CRD

("Central Rand Gold" or the "Company")

UPDATE ON POTENTIAL TRANSACTION BETWEEN CENTRAL RAND GOLD AND ASIAN INVESTORS

Further to the announcement dated 16 July 2015, shareholders are advised that discussions between Central Rand Gold and the two Asian Investor Groups namely, Hiria Group Company Limited ("Hiria") and Huili Resources Group Limited ("Huili") are continuing.

The major due diligence phase of the transaction was largely completed in June 2015. The recent discussions with Hiria and Huili have predominantly focused on commercial issues with some minor technical discussions relating to the dewatering of the basin continuing.

Discussions with Hiria and its financial partner, Hangzhou Everbright Private Equity Investment Management, are ongoing with various commercial structural alternatives being considered. The discussions with Hiria have migrated from the acquisition of Central Rand Gold (Netherlands Antilles) N.V. to that of a significant initial strategic investment in Central Rand Gold Limited ("Strategic Investment"). The Strategic Investment would be applied to increase the Company's gold production capacity and upgrade the Company's resource base.

Discussions with Huili remain ongoing with a range of commercial issues and technical matters, largely focused on the continued dewatering of the Central Basin, being discussed and progressed. The discussions with Huili still contemplate the acquisition of Central Rand Gold (Netherlands Antilles) N.V., however the progress of discussions has slowed over the past several weeks.

The board of directors of Central Rand Gold ("Board") is focused to ensure that any transaction presented to shareholders is as free from conditions as possible and is in a form that can be timeously completed. These considerations remain guiding principles of the Board, which will be applied when considering the various alternatives.

The Company continues to caution that there can be no certainty that the discussions with both Huili or Hiria will lead to a binding agreement being entered into by either party, nor that the potential sale of Central Rand Gold (Netherlands Antilles) N.V., or any other transaction will be completed.

For further information, please contact:

Central Rand Gold +27 (0) 87 310 4400

Johan du Toit / Nathan Taylor

Panmure Gordon (UK) Limited +44 (0) 20 7886 2500

Mark Taylor

Merchantec Capital +27 (0) 11 325 6363

Monique Martinez / Marcel Goncalves

7 September 2015

Johannesburg