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” or the “Group”)

2014 Interim Report

Central Rand Gold, the South African gold mining and exploration holding company, today announces its

unaudited Interim Results for the six months ended 30 June 2014 (“period under review”). The full set of

results is available on the Company’s website: www.centralrandgold.com.

For further information, please contact:

Central Rand Gold +27 (0) 87 310 4400

Johan du Toit / Nathan Taylor

Charles Stanley Securities +44 (0) 20 7149 6478

Marc Milmo / Mark Taylor

Merchantec Capital +27 (0) 11 325 6363

Monique Martinez / Marcel Goncalves

Buchanan +44 (0) 20 7466 5000

Bobby Morse / Louise Mason

Jenni Newman Public Relations Proprietary Limited +27 (0) 11 506 7351

Jenni Newman

15 August 2014

Johannesburg

Forward-looking statements

This Interim Report contains certain forward-looking statements with respect to the financial condition,

results of operations and business of the Central Rand Gold Group. The words “intend”, “aim”, “project”,

“anticipate”, “estimate”, “plan”, “believe”, “expect”, “may”, “should”, “will”, or similar expressions,

commonly identify such forward-looking statements. Examples of forward-looking statements in this

Interim Report include those regarding estimated Ore Reserves, anticipated production or construction

dates, costs, outputs and productive lives of assets or similar factors. Forward-looking statements involve

known and unknown risks, uncertainties, assumptions and other factors set forth in this Interim Report

that are beyond the Group’s control. For example, future Ore Reserves will be based in part on market

prices that may vary significantly from current levels. These may materially affect the timing and

feasibility of particular developments. Other factors include the ability to produce and transport products

profitably, demand for our products, the effect of foreign currency exchange rates on market prices and

operating costs, and activities by governmental authorities, such as changes in taxation or regulation, and

political uncertainty.

In light of these risks, uncertainties and assumptions, actual results could be materially different from any

future results expressed or implied by these forward-looking statements, which speak only as at the date

of this Interim Report. Except as required by applicable regulations or by law, the Group does not

undertake any obligation to publicly update or revise any forward-looking statements, whether as a result

of new information, or future events. The Group cannot guarantee that its forward-looking statements will

not differ materially from actual results.

Chief Executive Officer’s report

Key salient features during the first six months of the year

Revenue of US$5.77 million (2013: US$8.80 million).

Loss before taxation reduced in the period to US$2.84 million (2013: US$4.87 million).

The water table has been stabilised due to the commissioning of the High Density Sludge (“HDS”)

plant. The increase in pumping volumes, in August 2014, is expected to accelerate the drop in the

water table.

Doubling of resource base to 9.9 million ounces (“Moz”) recognises the ability of the HDS plant to

dewater the Central Basin.

Lower gold production due to lower feed grade from underground operations and lower reliance on toll

treatment. Improvements reported in mine call factor (“MCF”) and metallurgical throughput.

Commissioning of Mill 3 increasing production throughput by 55%.

Temporary reduction in underground mine production, due to high water level.

Access to new mining area, with surface and underground potential, to supplement lower production

from underground mining.

Safety

Safety Statistics

Type of injury Six months ended

30 June 2014

Six months ended

30 June 2013

Dressing cases 6 4

Lost-time injuries 4 12

Fatalities 1 -

The greatest disappointment during the first half of the 2014 financial year was our first fatality, in May

2014, from underground operations. All underground operations were stopped for 10 days, whilst an

extensive investigation was carried out. The Company has embarked on a company-wide safety culture

review, re-training of employees and supervisors, and also the review of the operating standards to

objectively address and minimise as far as reasonably practicable all accidents, and especially accidents

that may result in a fatality.

Acid Mine Drainage (“AMD”)

After a five-month delay in the start-up of the HDS plant, we were greatly relieved when Trans Caledon

Tunnel Authority ("TCTA") commenced with pumping and treatment operations of its HDS plant on 28

May 2014. Up to that point, no other means was available to dewater the Central Basin, and due to a very

wet summer, the rate of rise in the Central Basin was accelerated. Since commissioning, the HDS plant

has undergone a thorough commissioning phase under the guidance of TCTA. During the commissioning

phase, no ‘fatal flaws’ in the design of the HDS plant were identified. However, the HDS plant did

experience typical ‘teething issues’, which resulted in TCTA operating the HDS plant initially at a

reduced rate, with only one of the two submersible pumps running at any given time. TCTA stabilised the

plant at the end of June 2014, and started running the plant at around 48 million litres per day (“mlpd”)

during July 2014. The water table remained relatively stable during this time at around 160 metres below

surface (“mbs”). As at the end of July 2014, pumping was increased to 60 mlpd and the target is to

increase the pumping rate to 72 mlpd, by early August 2014. It remains too early to fully understand the

de-watering trend of the Central Basin.

Mining

With our mining operations established at 225 mbs, the increase in the water table above this level to

around 160 mbs has undoubtedly had an impact on the mining operations. Mining operations have been

limited to within the narrow band of 100 mbs to 160 mbs. Mining of the main reef within this mining

band remains limited, due to the shallower oxides ground conditions. The Company is currently targeting

new development to access unmined main reef areas.

Additionally, two pay-shoots on the North Reef which have been identified; an unmined reef package

approximately 10 metres below the Main Reef mining target area. If mining results remain positive, this

could add an additional mining target to Central Rand Gold’s portfolio, as the North Reef has remained

largely unmined, across the entire Mining Right area. Recognising the current mining limitations, and

until the water table drops substantially, Central Rand Gold has reduced the underground production

target at its CMR mining operation from 14,000 tonnes per month (“tpm”) to 4,500 tpm. The Company is

in the process of reducing its current staffing numbers to account for these new targets.

Central Rand Gold has also obtained access to an additional mining area. The area has very exciting

underground and surface mining potential. Central Rand Gold will initially target the surface potential and

believes the area has the production capability for an amount in excess of 10,000 tpm. The Company

plans to supplement the current reduction in underground mining with the above material.

Production statistics

30 June 2014

tonnes

30 June 2013

tonnes

Variance

Underground 66,085 72,956 (6,871)

Surface 22,076 57,260 (35,184)

Total 88,161 130,216 (42,055)

Underground mining

Underground mining production was in line with the plan during the first quarter. In the second quarter,

however, considerable face length was lost due to flooding by rising AMD levels. Underground mining

production was also impacted by the stoppage of underground mining activities by the DMR, as a result

of the fatal accident that occurred at the Company’s operations in the month of May. These factors

together had the effect of reducing mining production by 9% compared to the first half of the previous

year.

Surface mining

Open pit mining only recommenced, in line with planning, in the second quarter of the year. The mining

target for the second half of the year is a monthly target of 10,000 reef tonnes per month and it is

envisaged that we can mine open pit resources until the end of the year.

Metallurgy

Primary Crushing Circuit

The primary jaw crusher and static screen has been successfully commissioned and is performing

according to the required specification. The circuit allows for primary crushing of both oxide and sulphide

at rates exceeding that required by the secondary crusher, allowing for a substantial buffer of crushed

secondary ore feed, enabling reliable continuous operations.

Secondary Crushing Circuit Upgrade

The leased secondary Chameleon crusher continues to struggle with availability, which has placed the

Company under pressure to produce adequate fines for the mills. Major areas of concern are the

lubrication and filter system and ensuring that the feed material is free of any tramped steel and wood.

Central Rand Gold has decided to design and run its own secondary crushing circuit that will mainly

comprise a Symons 4 ¼ short head cone crusher within a closed circuit configuration. We expect this to

be operational by the end of the third quarter of 2014.

Milling capacity

A highlight for the first half of the year was the commissioning in May 2014 of Mill 3, which is a 9x10

feet Ball Mill with a capacity of 10,000 tpm. Predictive mill-modelling indicates a throughput capability

of 17 tonnes per hour (“tph”) which, when combined with the Company’s two existing ball mills, is

targeted to increase capacity by at least 55% to 25,000 tpm, which is in line with planned mining

production following dewatering to below 225 mbs. The table below summarises the throughput

characteristics of the Company’s three individual mills from May 2014:

Mill Dimension

Nameplate

Feed Rate (tph)

Designed

Uptime (%)

Monthly

Capacity (tpm)

Mill 1

(Bateman Mill) 7 x 10ft 7 85% 4,200

Mill 2

(CIL Mill) 9 x 12ft 22.5 85% 13,700

Mill 3

(New Mill) 9 x 10ft 17 85% 10,400

28,300

The increased feed capacity generated by Mill 3 significantly reduces the pressure on the existing milling

circuit. This enables a more proactive and effective maintenance programme to be conducted, which in

turn improves productivity and plant availability. It is anticipated that the increased milling capacity and

availability will reduce the Company’s reliance on external tolling, which will improve both revenue

generation and operating margins. In addition, the discrete configuration of the milling units allows for

preferential milling campaigns of ore feeds of different characteristics. As previously announced, the

Company is in the process of upgrading its downstream leaching capacity. Until these upgrades come on

stream, monthly production will be carefully managed, at approximately 20,000 tpm, to ensure that

metallurgical recoveries do not deteriorate.

Optimisation of existing mills

In mid-January 2014, the Company initiated a pro-active refurbishment and maintenance programme on

the existing mills (“Maintenance Program”) with the objective of improving productivity and increasing

mill availability. The Maintenance Programme has enabled the Company to migrate from a reactive

maintenance strategy, where items were replaced post breakage, to a pro-active maintenance strategy,

where components are closely monitored (through data analysis) and repaired or replaced before

breakages or failures occur. Although the Maintenance Programme is a long-term initiative, results

recorded over the last six months have been positive, with a significant increase in milling unit

availabilities being recorded since inception. The following table indicates the step change in availability

since the Maintenance Programme was launched in mid-January.

Period

Availability

(%)

January 2014 67.9

February 2014 90.0

March 2014 89.6

April 2014 87.9

May 2014 90.7

June 2014 91.6

The focus for the remainder of 2014 will be to ensure that plant availability will remain above 90%.

The Company is also pleased to report that the long awaited replacement gearbox and spare trunnion

bearings for Mill 2 have been received and there are plans to install the gearbox during the second half of

2014. Once installed, the ball charge of Mill 2 will be increased to the designed 30%, which will increase

Mill 2 capacity from 17 tph to the designed 22.5 tph.

Elution, leaching and thickening

As part of the total plant capacity upgrade, the Company has, besides the new mill, also embarked on

changes to its thickening, leaching and elution circuits.

The elution circuit was upgraded with a higher capacity elution heater and the installation of a new elution

column. For the more expensive leach and thickening circuits, Central Rand Gold also opted to utilise ‘fit

for purpose’ available second-hand equipment as opposed to new equipment. The Company acquired

three additional leach tanks and a 12m thickener that was initially planned to be commissioned during the

second quarter of 2014. The additional thickener and leach tanks acquired will provide leach capacity in

excess of 30,000 tpm. Good progress is being made with the installation of the first leach tank which is

expected to be commissioned by mid-August 2014.

The completion of the 12m thickener has been postponed until the last quarter of 2014 due to a delay in

the decommissioning and transport of the thickener from its current location. To compensate for the

delay, a 7,500 tpm thickener was commissioned at the end July 2014. This now provides the Company

with 27,500 tpm thickening capacity. Once the 12m thickener has been installed, the 7,500 tonnes

thickener will be converted to a water clarification plant, which will further reduce the reliance on

expensive municipal water. To date, Central Rand Gold has achieved a significant reduction of 63% from

the last quarter of 2013 to the second quarter of 2014, on monthly reliance on municipal water. This has

been made possible by focussing on the efficient usage and recycling of mine water.

Production

Metallurgical

2014 2013

January

to June

January

to June

Internal

- Tonnes processed (t) 80,749 77,791

- Built up head grade (g/t) 1.77 1.91

- Fine gold produced (oz) 3,205 4,246

External (Toll treatment)

- Tonnes processed (t) 13,902 32,979

- Delivered grade (g/t) 2.35 1.87

- Fine gold produced (oz) 944 1,851

Total tonnes processed (t) 94,651 110,770

Total gold produced (oz) 4,149 6,097

Gold production was impacted by the reduction in mining area during the first six months of the year due

to rising AMD and as a result the Company was forced to mine shallower and lower grade mining

channels. This had an adverse effect on gold production for the first half. The Company also reduced its

reliance on the higher cost toll treatment option, rather processing its ore through its own plant. This was

partly offset by higher throughput due to the commissioning of the new mill which started up in May

2014, the monthly production throughput increased from an average of 13,000 tpm to 18,000 tpm in June

2014. The benefits of the additional throughput will only be realised during the second half of 2014.

Another key factor that reported a great improvement was on the face to pour MCF. The MCF for 2013

was calculated at 71%, averaging just under the South African industry mean of 75%. The MCF for the

year to date (ending June 2014) has been calculated at 82%, a substantial improvement in operating

efficiency and better utilisation of plant.

Geology

Mineral Resources

The installation of the Ritz high capacity AMD pumps in March 2014, and the subsequent commissioning

of the HDS plant on 23 May 2014, has enabled the Company to re-evaluate its Mineral Resources.

Economic capital and operating cost studies have shown that further de-watering beneath the 450 metre

level can be done efficiently and economically. With the installation of additional pumps and piping, this

hurdle for “eventual economic extraction”, a key aspect in the definition of ‘Mineral Resources’ in terms

of the SAMREC Code, can be satisfied.

This has allowed the Company and the Independent Competent Person, Venmyn Deloitte, to re-rate the

gold mineralisation between 450 metres and 900 metres below surface from “Exploration Target” to

“Mineral Resource”. This reclassification has more than doubled the resource base of the Company from

4.51 Moz to 9.90 Moz of contained gold.

SAMREC Compliant Mineral Resources

July 2014 February 2014

Area Category Tonnes Grade Content Tonnes Grade Content

(Mt) (g/t) (Moz) (Mt) (g/t) (Moz)

CMR Measured 1.46 3.65 0.17 1.46 3.65 0.17

Indicated 14.43 4.22 1.97 11.30 4.53 1.64

Inferred 5.64 6.65 1.23 4.34 5.60 0.78

Exploration

12.02 9.26 3.59 15.86 8.49 4.33 Target

Crown Indicated 5.78 5.83 1.11 2.58 5.67 0.47

Inferred 3.11 8.03 0.80 2.77 7.19 0.64

Exploration

20.81 10.07 6.73 24.34 9.61 7.52 Target

City Indicated 2.88 6.97 0.63 0.78 7.58 0.19

Inferred 2.43 6.99 0.55 0.70 8.00 0.18

Exploration

19.12 9.66 6.32 22.95 9.66 7.13 Target

Village Indicated 1.80 6.48 0.39 0.53 5.87 0.10

Inferred 0.20 13.60 0.10 0.17 14.64 0.08

Exploration

12.27 10.93 4.30 13.57 10.57 4.61 Target

Simmers Indicated 1.53 8.80 0.43 0.73 8.10 0.19

Inferred 0.15 8.20 0.04 0.15 8.29 0.04

Exploration

8.75 10.35 2.92 9.55 10.29 3.16 Target

Other Indicated 3.16 1.22 0.13 - - -

Inferred 20.47 3.61 2.36 - - -

Exploration

10.04 9.07 2.92 33.67 8.34 5.41 Target

Total

Measured

1.46 3.57 0.17 1.46 3.57 0.17 Resource

Total Indicated 29.58 4.85 4.66 15.92 5.06 2.59

Resource

Total

Inferred

32.00 4.92 5.08 8.13 6.58 1.72 Resource

Total

Exploration

83.01 10.03 26.78 119.94 8.34 32.16 Target

Grand

146.05 7.80 36.69 145.45 7.84 36.64 Total*

Note: Rounding may result in minor computational discrepancies. The potential quantity and grade

described by the term “Exploration Target” is conceptual in nature and there has been insufficient

exploration to define a Mineral Resource and it is uncertain if further exploration will result in the

definition of a Resource. Further exploration work is ongoing, and includes trial mining and processing

of this shallow target to establish grade and ore body continuity, mineability, dilution and throughput

characteristics.

This basin wide increase in Mineral Resources will also significantly augment Reserve scheduling and

Pre-Feasibility level studies on adjacent mining targets such as Crown and City Deep.

NOTE: The information in this statement relating to Mineral Resources and geology has been reviewed

and approved by Mr Keith Matier, BSc (Hons), GDE, PrSci Nat, who is a Competent Person in terms of

the SAMREC code. Mr Matier is the Geology Manager of CRGSA and has over 20 years’ experience in

exploration, mineral resource management and mineral evaluation.

Financial update

Results

The net loss for the period under review amounted to US$2.84 million (3.78 cents per share) against a

loss of US$4.87 million for the six months ended 30 June 2013 (15.22 cents per share). The loss was

driven by lower head grade and lower reliance on toll revenue during the first half of the year. The loss

was partly mitigated by a focus on the reduction of costs in the following areas:

Decrease in production costs through the more effective use of utilities. Water cost was reduced by

70% through the more effective use of recycling processed water;

Lower staff costs due to the strong focus on reducing contract staff as well as improvements in plant

availability significantly reduced overtime costs;

Significantly lower plant hire costs indicating the benefit of owned primary crushing plant; and

Upgrade of current plant resulting in improved availability and operational efficiencies.

As a consequence, all-in cash operating costs per ounce decreased to US$1,987 per ounce (June 2013:

US$2,268) against the prior year’s US$2,425 per ounce.

As at 30 June 2014, the net cash position of the Company stood at US$4.39 million (December 2013:

US$2.48 million).

Looking forward

Over the next six months the following will be the main focus areas for the Company:

Underground mining at CMR, which will largely be driven by the progress of the de-watering of the

Central Basin to 225mbs as well as the grade on the North Reef.

The new mining area carries exciting new opportunities and the Company will commence with surface

mining and will further study the area to identify other target areas and future underground potential.

The completion of the Metallurgical downstream plant, to enable the operation to process optimally

around the 25,000 tpm level.

Johan du Toit

Chief Executive Officer

Condensed Group Statement of Financial Position

as at 30 June 2014 30 June 31 December 30 June

2014 2013 2013

Notes US$ '000 US$ '000 US$ '000

(Unaudited) (Audited) (Unaudited)

ASSETS

Non-current assets

Property, plant and equipment 5 4,763 3,619 3,570

Intangible assets 3,104 3,131 3,326

Security deposits and guarantees 210 194 225

Environmental guarantee investment 3,361 3,338 3,507

Loans receivable 6 8,961 8,571 8,641

20,399 18,853 19,269

Current assets

Security deposits and guarantees 71 70 70

Prepayments and other receivables 1,004 914 1,239

Inventories 7 813 910 1,029

Cash and cash equivalents 4,389 2,475 1,311

Non-current assets held-for-sale 8 - 174 -

6,277 4,543 3,649

Total assets 26,676 23,396 22,918

EQUITY

Attributable to equity holders of the

parent

Share capital 9 26,314 25,604 25,604

Share premium 9 218,630 213,377 213,377

Share-based compensation reserve 28,187 28,224 28,176

Treasury shares (6) (6) (6)

Foreign currency translation reserve (29,348) (29,442) (29,675)

Accumulated losses (249,133) (246,291) (236,370)

(5,356) (8,534) 1,106

Non-controlling interest - - -

Total equity (5,356) (8,534) 1,106

LIABILITIES

Non-current liabilities

Environmental rehabilitation 5,904 5,713 5,842

Loan payable 10 19,336 19,091 8,641

25,240 24,804 14,483

Current liabilities

Trade and other payables 6,792 6,971 7,235

Taxation payable - 155 94

6,792 7,126 7,329

Total liabilities 32,032 31,930 21,812

Total equity and liabilities 26,676 23,396 22,918

Condensed Group Statement of Financial Performance

for the six months ended 30 June 2014

Six months 12 months Six months

ended ended ended

30 June 31 December 30 June

2014 2013 2013

Notes US$ '000 US$ '000 US$ '000

(Unaudited) (Audited) (Unaudited)

Revenue 11 5,774 14,627 8,798

Production costs 12 (4,856) (16,344) (8,977)

Employee benefits expense (1,607) (3,969) (2,080)

Directors' emoluments 13 (434) (850) (436)

Inventory write-(down)/up (40) 39 (169)

Operating lease expense (304) (523) (280)

Operational expenses 14 (639) (1,588) (868)

Other expenses 15 (882) (2,855) (994)

Other income and gains 16 131 622 483

Foreign exchange transaction gains/

(losses) 261 (121) (27)

Loss before interest, tax and depreciation (2,596) (10,962) (4,550)

Depreciation (226) (536) (433)

Impairment of assets - (224) -

Loss on fair value of convertible loan note - (3,234) -

Finance income 456 1,287 581

Finance costs (476) (1,123) (469)

Loss before income tax (2,842) (14,792) (4,871)

Income tax expense 17 - - -

Loss for the period (2,842) (14,792) (4,871)

Loss is attributable to:

Non-controlling interest - - -

Equity holders of the parent (2,842) (14,792) (4,871)

(2,842) (14,792) (4,871)

Shares in issue 75,180,808 31,993,443 31,993,443

Weighted average number of ordinary

shares in issue 75,180,808 31,993,443 31,993,443

Fully diluted weighted average number of

ordinary shares in issue 75,180,808 31,993,443 31,993,443

Basic loss per share (US cents per share) 19 (3.78) (46.23) (15.22)

Diluted loss per share (US cents per share) 19 (3.78) (46.23) (15.22)

Condensed Group Statement of Comprehensive Income

for the six months ended 30 June 2014

Six months 12 months Six months

ended ended ended

30 June 31 December 30 June

2014 2013 2013

US$ '000 US$ '000 US$ '000

(Unaudited) (Audited) (Unaudited)

Loss for the period (2,842) (14,792) (4,871)

Other comprehensive income/(loss): Item that may be reclassified subsequently

to profit or loss

Exchange differences on translating foreign

operations 94 (784) (1,017)

Other comprehensive income/(loss) for the

period, net of tax 94 (784) (1,017)

Total comprehensive loss for the period (2,748) (15,576) (5,888)

Total comprehensive loss is attributable

to:

Non-controlling interest - - -

Equity holders of the parent (2,748) (15,576) (5,888)

(2,748) (15,576) (5,888)

Condensed Group Statement of Changes in Equity

for the six months ended 30 June 2014

Attributable to equity holders of the Group

Notes

Ordinary

share

capital

Share

premium

Share-based

compensa-

tion reserve

Treasury

shares

Foreign

currency

translation

reserve

Accumula-

ted losses Total

Non-

controlling

interest

Total

equity

US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000

Balance at 31 December

2012

25,604 213,377 28,176 (6) (28,658) (231,499) 6,994 - 6,994

Total comprehensive

income for the period

ended 30 June 2013

Loss for the period - - - - - (4,871) (4,871) - (4,871)

Other comprehensive

income

Foreign currency

adjustments

- - - - (1,017) - (1,017) - (1,017)

Transactions with owners,

recorded directly in equity

Employee Share Option

Scheme:

Share-based payments:

Employees' and Directors'

shares and options

- - - - - - - - -

Balance at 30 June 2013 25,604 213,377 28,176 (6) (29,675) (236,370) 1,106 - 1,106

Attributable to equity holders of the Group

Notes

Ordinary

share

capital

Share

premium

Share-based

compensa-

tion reserve

Treasury

shares

Foreign

currency

translation

reserve

Accumula-

ted losses Total

Non-

controlling

interest

Total

equity

US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 US$ '000 Balance at 31 December

2013 25,604 213,377 28,224 (6) (29,442) (246,291) (8,534) - (8,534)

Total comprehensive

income for the period

ended 30 June 2014

Loss for the period - - - - - (2,842) (2,842) - (2,842)

Other comprehensive

income

Foreign currency

adjustments

- - - - 94 - 94 - 94

Transactions with owners,

recorded directly in equity

Issue of Shares:

Capital raising 9 710 5,253 - - - - 5,963 - 5,963

Employee Share Option

Scheme:

Share-based payments:

Employees' and Directors'

shares and options 21 - - (37) - - - (37) - (37)

Balance at 30 June 2014 26,314 218,630 28,187 (6) (29,348) (249,133) (5,356) - (5,356)

Condensed Group Statement of Cash Flow

for the six months ended 30 June 2014

Six months 12 months Six months

ended ended ended

30 June 31 December 30 June

2014 2013 2013

US$ '000 US$ '000 US$ '000

(Unaudited) (Audited) (Unaudited)

CASH FLOWS FROM OPERATING

ACTIVITIES Notes

Loss before tax (2,842) (14,792) (4,871)

Adjusted for :

Depreciation 226 536 433

Employment benefit expenditure (share-

based payments) (37) 48 -

Loss/(profit) on disposal and scrapping of

property, plant and equipment 9 (541) (457)

Impairment of inventory 7 40 (39) 169

Impairment of assets - 224 -

Net (gain)/loss on foreign exchange (261) 121 27

Sundry income 16 - - (26)

Finance income (456) (1,287) (581)

Finance costs 476 1,123 469

Loss on fair value of convertible loan note - 3,234 -

Changes in working capital

(Increase)/decrease in prepayments and other

receivables (90) 38 (287)

Increase in inventory 57 370 43

(Increase)/decrease in trade and other

payables (179) 935 1,154

Increase/(decrease) in provisions 258 974 (381)

Cash flows (used in)/from operations (2,799) (9,056) (4,308)

Finance income - - 114

Finance costs (15) (245) (1)

Sundry income - - 26

Net cash used in operating activities (2,814) (9,301) (4,169)

CASH FLOWS FROM INVESTING

ACTIVITIES

Purchases of property, plant and equipment 5 (2,022) (839) (61)

Proceeds from disposal of property, plant

and equipment - 566 -

Increase in environmental guarantee deposit (54) (60) -

Net cash used in investing activities (2,076) (333) (61)

CASH FLOWS FROM FINANCING

ACTIVITIES

Net proceeds from issue of share capital 5,963 - -

Net proceeds from issue of convertible notes - 7,027 -

Net cash from financing activities 5,963 7,027 -

Net increase/(decrease) in cash and cash

equivalents 1,073 (2,607) (4,230)

Cash and cash equivalents at 1 January 2,475 4,512 4,512

Effects of exchange rate fluctuations on cash

balances 841 570 1,029

Cash and cash equivalents at end of

period 4,389 2,475 1,311

Notes to the Condensed Interim Group Financial Statements

for the six months ended 30 June 2014

1. Basis of preparation This condensed set of financial statements has been prepared in accordance with IAS 34 Interim

Financial Reporting as adopted by the European Union (“EU”). The annual Financial Statements of the

Group are prepared in accordance with International Financial Reporting Standards and Interpretations

(collectively “IFRS”) issued by the International Accounting Standards Board (“IASB”) as adopted by

the EU. The condensed interim Group financial statements have been prepared applying the accounting

policies and presentation that were applied in the preparation of the Company’s published consolidated

financial statements for the year ended 31 December 2013 except for the changes described in note 2.

The consolidated financial statements are presented in United States Dollars (“US$” or “US Dollar”) and

rounded to the nearest thousand. The functional currency of the parent company, Central Rand Gold

Limited, changed during the prior year from the British Pound to the US Dollar as its main source of

funding is now the US Dollar. The functional currency of its principal subsidiary, CRGSA is the South

African Rand (“ZAR” or “Rand”).

Going concern

REQUESTED FROM PATRICK. PER PATRICK, THIS ALL DEPENDS ON THE REVISED The Directors have prepared the condensed interim Group financial statements on the going concern

basis having considered the current operations, the current funding position and the projected funding

requirements of the business for at least 12 months from the date of approval of the financial statements

as detailed below.

The Directors have prepared cash flow projections until 2024 that reflect the current mine plan adopted

by the Directors. These projections show that the Group has sufficient funding for at least the next 12

months from the date of approval of these condensed interim Group financial statements and hence the

Directors have prepared the condensed interim Group financial statements on a going concern basis.

Following the successful completion of the Open Offer in January 2014 and Redstone Capital’s exercise

of the options available to it in March 2014, additional funds of US$2.2 million (£1.69 million) and

US$3.4 million (£2.11 million), respectively, were raised. The Directors consider that there is now

adequate funding in place and, based on the current mine plan, no further capital raises are considered

necessary for the life-of-mine.

The Directors are optimistic about the future of the Company and the dewatering may give the Company

improved access to deeper mining levels over time. However, the risks inherent in any single metal

mining operation remain for the longer term.

2. Accounting policies Except as described below, the accounting policies applied by the Group in these condensed interim

Group financial statements are the same as those applied by the Group in its consolidated financial

statements as at and for the year ended 31 December 2013, as described in those consolidated financial

statements.

The Group has adopted the following standards and amendments to standards, including any

consequential amendments to other standards, with a date of initial application of 1 January 2014:

• IFRS 10: Consolidated Financial Statements

• IFRS 12: Disclosure of Interests in Other Entities • IAS 27: Consolidated and Separate Financial Statements • IAS 32: Financial Instruments – Presentation • IAS 36: Impairments of Assets The adoption of these Standards is not expected to have a significant impact upon the Group’s net

results, net assets or disclosures.

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to

expected total annual earnings.

3. Estimates and judgements

The preparation of condensed interim Group financial statements requires management to make

judgements, estimates and assumptions that affect the application of accounting policies and the reported

amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing this condensed interim Group financial statements, the significant judgements made by

management in applying the Group’s accounting policies and the key sources of estimation uncertainty

were the same as those that applied to the consolidated annual financial statements as at and for the year

ended 31 December 2013.

4. Financial risk management The Group’s financial risk management objectives and policies are consistent with those disclosed in the

consolidated annual financial statements as at and for the year ended 31 December 2013.

Fair value The aggregate net fair values of all current financial assets and financial liabilities, as well as non-current

receivables, instalment sales and finance leases approximate the carrying amounts at the financial

reporting date.

Foreign currency rates The US Dollar rates of exchange applicable to the period are as follows: 2014 2013 2013 Six months to Year ended Six months to 30 June 31 December 30 June Closing Average Closing Average Closing Average South African Rand 0.09 0.09 0.10 0.10 0.10 0.11 Pound Sterling 1.70 1.67 1.65 1.56 1.52 1.54 5. Property, plant and equipment During the six months ended 30 June 2014, the Group spent US$1,894,534 to upgrade the plant and

US$127,634 to purchase other items of property, plant and equipment. In the six month period ending 30

June 2013, US$61,276 was spent on the purchase of items of property, plant and equipment.

6. Loans receivable Puno Gold Investments Proprietary Limited ("Puno") Since the last report for the year ended 31 December 2013 there has been no resolution to the dispute

relating to alleged procedural breaches of the CRGSA Shareholders’ Agreement between CRGSA and

its current Black Economic Empowerment (“BEE”) shareholder, Puno. The dispute surrounds the

allocation of intercompany loans which fund the budget and work programme and the incurring of, and

level of, certain costs.

During the period under review, the Company was granted the right to appeal the December 2013 ruling. The Group still believes that ultimately their position will prevail. The Board is still of the opinion that

this will not have any material consequences in respect of the consolidated accounts of the Group.

The loan payable to Puno contains the same allocations referred to above. 7. Inventories Group June December June 2014 2013 2013 US$ '000 US$ '000 US$ '000 Consumables 80 130 218

Ore stockpiles 733 780 811

Total inventories 813 910 1,029

The amount of the write-down of ore stockpiles to net realisable value, and recognised as an expense is

US$881,109 (2013: US$169,183).

8. Non-current assets held-for-sale At 31 December 2013, the Group classified an item of plant and machinery, being the flotation plant (net

realisable value: US$172,517) as non-current assets held-for-sale. During the six months ended 30 June

2014, the Group disposed the flotation plant for US$161,512, resulting in a loss of US$9,363. No

additional items were classified as held-for-sale during the period under review.

9. Share capital and share premium On 20 January 2014, the Company allotted and issued 19,196,065 new Ordinary Shares at a price of 8.78

pence per Ordinary Share in the Open Offer raising approximately US$2.61 million (£1.59 million) net

proceeds. On 25 March 2014, Redstone Capital exercised 73.6% of the options available to it following

the Open Offer and had accordingly acquired 23,991,300 shares for a net consideration of US$3.36

million (£2.04 million).

10. Loan payable

2.61

3.36

Net proceeds (USD million)

Group

June December June

2014 2013 2013

US$ '000 US$ '000 US$ '000 Loan payable consists of the following:

Puno Gold Investments Proprietary Limited 8,961 8,571 8,641

Redstone Capital Limited 10,375 10,520 -

19,336 19,091 8,641

11. Revenue

Group June December June 2014 2013 2013 US$ '000 US$ '000 US$ '000

Gold sales 5,337 14,627 8,798

Other by-product sales 437 - -

5,774 14,627 8,798

The revenue relates to the sale of gold derived from surface and underground mining activities and the

sale of other by-products. 4,150 (30 June 2013: 5,837) ounces of gold was sold. At the start of the

previous financial year, the sale of gold by the Company met the criteria to recognise revenue per the

Company’s accounting policy. Therefore, revenue from the sale of gold was no longer disclosed as other

income but as revenue.

12. Production costs

Group June December June 2014 2013 2013 US$ '000 US$ '000 US$ '000

Production costs comprise the following items:

- Consumables 1,307 3,417 1,969

- Utilities 465 3,135 1,675

- Plant hire 1,090 4,027 2,319

- Labour hire 1,259 2,803 1,148

- Toll treatment 470 1,988 1,225

- Environmental rehabilitation provision 265 974 641

4,856 16,344 8,977

13. Changes to the Board

During the period under review, the composition of the Board changed. Two Independent Non-executive

Directors of the Group, Mr M Salamon and Mr M McMahon, resigned on 1 April 2014 and 16 May 2014

respectively. Mr A Phillips was appointed as an Independent Non-executive Director of the Group on 16

May 2014. Mr P Malaza resigned as Finance Director with effect from 31 July 2014.

14. Operational expenses Group June December June 2014 2013 2013 US$ '000 US$ '000 US$ '000 Operational expenditure comprises the following items: - Assaying costs 155 550 232 - Consulting services 355 490 346 - Environmental costs 5 5 - - Mineral property options paid 124 543 491 - Other expenses - - (201) 639 1,588 868

15. Other expenses

Group

June December June 2014 2013 2013 US$ '000 US$ '000 US$ '000 Auditor's remuneration 39 228 128 Corporate social investment 2 8 8 Fees and subscriptions 181 203 56 Insurance and financial services 95 187 112 Legal costs 140 374 82 Repairs and maintenance 35 158 53 Security 149 320 163 Travel and accommodation 4 37 18 Information technology 65 193 112 Other expenses 172 1,147 262 882 2,855 994

16. Other income and gains Group June December June 2014 2013 2013 US$ '000 US$ '000 US$ '000 Sundry income

1 131 622 483

1. Sundry income mainly relates to profit on the disposal of property, plant and equipment and other sundry

income. 17. Income tax expense Income tax expense is recognised based on management’s best estimate of the weighted average annual

income tax rate expected for the full financial year. The estimated average annual tax rate used for the year

to 30 June 2014 is 0% (2013: 0%) due to assessable losses available to CRGSA and the Guernsey resident

status of CRG LTD resulting in 0% effective rates.

18. Commitments Group June December June 2014 2013 2013 US$ '000 US$ '000 US$ '000

Fees payable to iProp Limited for prospecting - 500 -

Fees payable to Sekgwa Mining Services

Proprietary Limited for underground mining

services

209 245 -

Acquisition of tangible assets contracted for 48 - -

257 745 -

The only commitments outstanding at 30 June 2014 are similar in nature to those disclosed at the 31

December 2013 year end and are those incurred in the normal course of business.

19. Loss per share Group June December June

2014 2013 2013

Headline loss per share (US cents per share) (3.76) (47.93) (16.65) Diluted headline loss per share (US cents per share) (3.76) (47.93) (16.65)

Reconciliation between loss attributable to the

equity holders of the Group and the headline

loss attributable to the equity holders of the

Group:

Loss attributable to equity holders of the Group

(US$'000) (2,842) (14,792) (4,871)

Add: Loss on disposal of property, plant and

equipment (US$'000) 9 - -

Less: Profit on disposal of property, plant and

equipment (US$'000) - (541) (457)

Headline loss attributable to equity holders of the

Group (US$'000) (2,833) (15,333) (5,328)

20. Segment reporting An operating segment is a component of an entity that engages in business activities from which it may

earn revenues and incur expenses, whose operating results are regularly reviewed by the entity’s chief

operating decision maker to make decisions about resources to be allocated to the segment and assess its

performance, and for which discrete financial information is available. The entity’s chief operating

decision maker reviews information in one operating segment, being the acquisition of mineral rights and

data gathering in the Central Rand Goldfield of South Africa, therefore management has determined that

there is only one reportable segment. Accordingly, no analysis of segment revenue, results or net assets

has been presented. No corporate or other assets are excluded from this segment.

21. Share-based payments No additional shares and share options in the Company were granted during the six months ending 30

June 2014.

22. Related parties No disclosable related party transactions occurred during the period. 23. Contingent liability There has been a change in the contingent liability since the last annual reporting date. A contingent

liability no longer exists as at 30 June 2014 as the South African Revenue Service (SARS) has settled all

outstanding Vat refunds.

24. Events occurring after reporting date No material changes, other than those highlighted in this report, have occurred in the affairs of the Group

between the end of the half year and the date of this report.

Company profile

Our business

Central Rand Gold Limited (“Central Rand Gold” or “the Company”) is engaged in a gold mining

and exploration project that aims to bring profitable and sustainable gold mining back to the City

of Johannesburg, bringing many benefits to the City, the communities surrounding its mining

operations, its staff, its shareholders and other stakeholders. The Company plans to extract all

profitable gold from its resource base using appropriate mining, processing and environmentally

friendly technologies. Once the mineralised areas are worked out, stabilised and rehabilitated, the

land will become available for urban development.

History

Central Rand Gold is the holding company for a group of companies (“Group”). Central Rand

Gold listed on the Official List of the UK Listing Authority and the Main Boards of both the

London Stock Exchange (“LSE”) and the JSE Limited (“JSE”) in November 2007, after

consolidating contiguous exploration permits covering approximately 138 square kilometres in

the most prolific gold-producing area of the world – the Central Rand Goldfields on the southern

outskirts of Johannesburg. On 18 September 2013, Central Rand Gold opted to transfer its listing

to AIM in London and to the AltX in Johannesburg.

Mining Rights and Prospecting Rights

The Group acquired seven New Order Prospecting Rights which constitute from west to east,

Western Areas A, B and E, the three Cs (one Prospecting Right for Consolidated Main Reef,

Crown Mines and City Deep), Anglodeeps area, Village Main and Robinson Deep (one

Prospecting Right) and the mining area of the defunct Simmer and Jack Gold Mine. The

Prospecting Rights extend over an area from west to east of approximately 40 kilometres and

north to south of approximately seven kilometres (the “Central Rand Project”). In addition, the

Southern Deeps New Order Prospecting Right Application (the “Prospecting Application”), if

granted, would extend the Central Rand Project by a further 13 kilometres to the south. On 27

February 2012, it was announced that the Prospecting Rights in respect of Western Areas A, B

and E had been transferred from Rand Quest Syndicate Limited (“RQS”) to Central Rand Gold

South Africa Proprietary Limited (“CRGSA”) via Section 11 applications lodged with the South

African Department of Mineral Resources (“DMR”). The Southern Deeps Prospecting

Application is still in the process of being transferred. The Anglodeeps Prospecting Right renewal

was submitted to the DMR but was unfortunately rejected on a technicality. This is currently

being taken on appeal.

The Company received its first New Order Mining Right from the DMR on 17 September 2008.

This Mining Right, which was awarded 14 months after the initial application, enables Central

Rand Gold to mine gold at its Consolidated Main Reef, Langlaagte and Crown Mines tenements.