Canal+ Regulatory News (CAN)

Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining

10 September 2010

Central African Gold Plc ('CAG' or 'the Company')

Operational Update

Central African Gold Plc, the AIM quoted gold mining and exploration company, is pleased to announce that, in early August 2010, the Company resumed gold production at both the Old Nic and the Dalny mines in Zimbabwe, which were previously on a care and maintenance programme.

The Old Nic mine

The Old Nic mine, which is part of Olympus Mines Limited, a wholly owned subsidiary of the Company, currently employs 197 people and since production resumed on 2 August 2010, it has produced 110 ounces of gold (110 ounces attributable to CAG).

The Dalny mine complex

The Dalny mine complex, which is part of Falcon Gold Zimbabwe Limited, an 84.7% controlled subsidiary of the Company, employs 232 people and since production resumed on 2 August 2010, it has produced 124 ounces of gold (105 ounces attributable to CAG).

The Dalny mine complex has a strike length of over 15 kilometres. Historical production at the Dalny mine complex, up to 2006, was 2.44 million ounces of gold from 10.2 million tonnes of mineralised material grading approximately 7.42 g/t. The board of CAG ('the Board') believes that there is the opportunity to develop a number of open-pit, medium-grade bulk mining operations within the greater Dalny shear zone. Accordingly, the Board believes that this asset is currently under-explored and offers a substantial medium to long-term development opportunity.

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Notes to Editors

CAG

Central African Gold Plc is a gold mining company with a portfolio of production, development and exploration assets in Zimbabwe, where the Company operates through two subsidiaries, Falcon Gold Zimbabwe Limited (84.7 per cent. owned) and Olympus Gold Mines Limited (100 per cent. owned). Through these subsidiaries, CAG has four main gold mines, the Dalny, Old Nic, Golden Quarry and Camperdown mines, which arelocated in the highly prospective Kadoma, Shurugwi and Bulawayo gold regions in Zimbabwe.

NDM

The Company's 88.68% shareholder is TSX listed New Dawn Mining Corp., a gold company with a broad portfolio of production and exploration assets also in Zimbabwe. NDM owns and operates the Turk and Angelus Mines in the upper southwest area of Zimbabwe, which it believes have the potential to produce an estimated 35,000 to 50,000 ounces of gold per annum. It is NDM's objective to orchestrate the development of CAG's mining operations and exploration portfolio, as well as its own, to become a mid-tier gold producer focussed in Zimbabwe, with a consolidated annualised gold production to between 50,000 and 60,000 ounces within the next 18 to 24 months, increasing to 100,000 ounces by 2014, and then ultimately to 200,000 to 250,000 ounces.