Central Rand Gold Regulatory News (CRND)

Loan Agreement

Further to the announcement dated 25 November 2016, regarding "the Loan Agreement" with Mr. Jia Bang Wang, the Company wishes to report that it has received a further tranche of US$250,000. The Company is currently working with Mr. Wang to assist with the release of the balance of the loan monies.

The board of directors are mindful of the Company's cash position, which has been improved by the delivery of this tranche of the loan, and will continue to exercise prudence in its expenditure. The Company will update the market on progress of the shipping, instalment and commissioning of the Concentrator Circuit presently and will provide a further operational update in the coming days.

Industrial Relations Update

The negotiation of annual wage increases has ended in a dead lock, and the employees have embarked on industrial action in the form of a strike. The Company and Union Officials have met at the CCMA to resolve issues. To date, 10 May 2017, the Company has lost 5 days' production, as a direct result of the strike.

On 9 May 2017, the picketing rules have been signed at the CCMA, thus allowing non-striking workers to return to work. The operation will be run with skeleton staff in the interim.

For further information, please contact:

Central Rand Gold +27 (0) 87 310 4400

Lola Trollip

ZAI Corporate Finance Ltd - Nominated Adviser & Broker +44 (0) 20 7060 2220

John Treacy / Tim Cofman

Brandon Hill Capital Limited - Broker +44 (0) 20 3463 5000

Jonathan Evans / Wei Jiao

Merchantec Capital - JSE Sponsor +27 (0) 11 325 6363

Monique Martinez / Marcel Goncalves

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