Central Asia Metals Regulatory News (CAML)

8 February 2011

CENTRAL ASIA METALS PLC

("Central Asia Metals" "CAML" or the "Company")

Ereen Licence Status, Mongolia

Central Asia Metals (AIM:CAML), a mining exploration and development company focused on base and precious metals in Central Asia, is pleased to announce that the Ministry of Mineral Resources and Energy of Mongolia has confirmed that CAML's Ereen licences have been removed from the list of licences in country liable to be revoked.

On 8 December 2010 CAML issued a press release concerning the potential termination of three of its Ereen licences. On 17 November 2010 the Government of Mongolia published a list of 254 mineral licences in the country that they intend to revoke. As formerly stated, CAML sent letters to the Department of Mineral Resources, Ministry of Mineral Resources and Energy, and Ministry of Environmental Protection and Tourism questioning the inclusion of our licences in the published list.

CAML can now confirm that it has received confirmation from the Ministry of Mineral Resources and Energy of Mongolia that the Ereen licences have been removed from the Ministry's list of mining licences under consideration for termination. All three licences are considered hard rock deposits and therefore are not defined as alluvial as previously described by the Ministry of Mineral Resources and Energy.

The Chief Executive Officer of CAML, Nick Clarke, commented;

"It is pleasing to see the speed with which the Ministry responded to our request to review their decision on our Ereen licence and gratifying to receive such a favourable response. Mongolia remains a key region for CAML and we remain committed to our exploration projects, namely, Alag Bayan copper/gold, Handgait molybdenum and the Ereen gold projects. The authorities have shown their willingness to address matters of dispute in a fair and equitable manner.

Enquiries:

Overview of Central Asia Metals

Central Asia Metals Plc currently has interests in a number of copper, gold and molybdenum mining exploration and development assets in Kazakhstan and Mongolia.

In Kazakhstan, the Company has advanced plans for the construction of a plant at the former Kounrad copper mine that will have the capacity to deliver 10,000 tonnes per annum of near term, low-cost copper production. CAML plans to construct the plant with a joint venture with a local Kazakh government entity, Saryarka. Kounrad was formerly an open-pit copper mine that was operated between 1936 and 2005. The site around the mine contains a number of dumps of waste material from the mine from which copper can be extracted through an in-situ leaching process followed by Solvent Extraction - Electro-Winning (''SX-EW''). Initial construction ground-works for the commercial SX-EW plant have already been started and production at the plant is expected to commence in the fourth quarter of 2011.

Central Asia Metals also has exploration opportunities in the region. One of these is Alag Bayan, an early stage exploration project in Mongolia, where the Company is focused on outlining a potentially significant copper/gold porphyry target. This asset is situated close to the Oyu Tolgoi copper mine being developed by Rio Tinto and Ivanhoe Mines. In addition Central Asia Metals plans to develop further its molybdenum exploration project, Handgait, and its gold exploration project, Ereen, both located in Mongolia.

The Company has an experienced management team that has a proven track record of developing and commercialising mining opportunities in Central Asia. Central Asia Metals plans to use this experience to look at additional opportunities in the region and is already in early stage discussions in respect of a new exploration and development opportunity.

Further details about Central Asia Metals can be found on the Company's website: www.centralasiametals.com