RNS Number:4218F
Central African Gold PLC
29 June 2006

     Central African Gold Plc / Ticker: CAN / Index: AIM / Sector: Mining &
                                  Exploration

29 June 2006

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



                                 Final Results

                      For the Year ended 31 December 2005



Chairman's Statement



It gives me great pleasure to report on the developments the Company has made
within the last year. However, most of the significant events that have affected
the Company, happened post year end, so I feel it is prudent to include these in
my statement so that our shareholders are fully appraised of the current
situation and the strategy being employed.



Exploration Update



Over the period we have made good progress having broadened our geographical
focus from Botswana through the signing of a new Joint Venture deal in Mali,
expanded the Board through the appointment of Greg Hunter (CEO) and Mark Rosslee
(FD) and strengthened the balance sheet via an institutional placing. As a
result the Board is confident that the progress made this last year places
Central African Gold "CAG" in good stead to pursue an aggressive growth strategy
in Africa and fulfil its objective of becoming a significant African gold
producer.



The Company's main strategy is to acquire projects either through majority or
minority stakes or through Joint Ventures. The recent Joint Venture with Mali
Mining House ('MMH') provides CAG with a solid foothold in the highly
prospective West African Birimian Gold Belt, an area which makes Mali the third
largest producer in Africa. Under the agreement CAG and MMH have established an
80% - 20% Joint Venture Company which has assumed ownership of the licences
issued by the Malian Ministry of Mines, Energy and Water. CAG is providing the
technical and financial resources required to progress the various projects,
while MMH, a company established by members of the Malian Union Nationale des
Operateurs Miniers ('UNOMIN'), a collective of Malian title-holders, has assumed
a 20% free-carried stake.



Reconnaissance work had been undertaken to review the large volume of
geophysical and geochemical data that exists over the southern and western
regions of Mali. Large anomalies have already been identified in the area and as
a result exploration commenced late January 2006 with the assistance of Guy
Fransceshi Consulting, a Belgium-based consulting group which has extensive
experience in this region. Early indications have shown promising results.
Areas with the greatest prospectivity will be identified, prioritised and
advanced as quickly as possible through the implementation of a comprehensive
programme of soil sampling, field mapping and reinterpretation of the airborne
geophysics.



We have also made progress through our 53% controlling interest in Golden Tau
Mining Ltd ('Golden Tau') which has been carrying out an exploration programme
over its 872 square kilometres Kraaipan Project in southern Botswana.  The
project covers most of the area underlain by the Kraaipan Greenstone Terrane, an
Archaean greenstone belt that is an extension of the greenstone belt in South
Africa, which hosts gold mines and historically had up to four million ounces
combined gold resource and past production.



As reported in the Interim statement, a trial helicopter EM survey (known as a
VTEM survey) was flown over a portion of the licence area in late 2004.  An
interpretation of re-processed aeromagnetic surveys together with the new VTEM
data identified over 50 specific target areas which have now been located and
tested on the ground using a ground TEM geophysical survey. This work has
enabled a detailed geological mapping of the belt to be produced for the first
time. An initial programme of seven reverse circulation drill holes (1025
metres) was undertaken to test three strong geophysical and geological target
zones. All holes intersected a greenstone succession comprising mafic volcanics,
invariably interspersed with banded iron formation and sediment rock units and
occasional ultramafic rock units (talcose). The highest gold value is 0.83 g/t
gold and the disseminated sulphides would explain the VTEM anomaly. The
strongest VTEM anomalies have yet to be drill tested.



This work has identified new areas within the Company's licences that are
prospective for gold mineralisation.



Directorate Change



In order to accelerate the development of the Company, I was very pleased that
we were able to recruit Greg Hunter and Mark Rosslee to the positions of CEO and
Finance Director respectively. They bring with them great experience and
enthusiasm and share the Company's vision to build Central African Gold into a
significant mining company in Africa. They have also brought with them an
experienced team who will assist them in fulfilling an aggressive growth
strategy to acquire and develop significant opportunities. As a result of this,
the Company is already evaluating growth opportunities, one of which was
announced and would be classified as a reverse take-over. This transaction
however is not being pursued at present but the Company continues to evaluate
other prospects and will provide details in due course.



As a result of the recent appointments, Andrew Groves, Brian Moritz and I have
decided to step down from the Board with effect from the end of June. We believe
that the Company is now in a strong position, being well financed and run by an
experienced team of gold professionals. It has been our policy that we step down
once the initial corporate development stage has been completed. However we will
remain very supportive of Greg and his team and will assist where possible in
building a successful Company, delivering shareholders with sustainable growth.



Share Placing



In order to strengthen the balance sheet the Company raised #9,000,735 on 21
April 2006 through the placing of 100,008,167 new ordinary shares, the proceeds
of which will be used to acquire new projects in Africa that can be brought into
production in the short to medium term and to develop existing projects. This
has increased the shareholder base and strengthened the Company's balance sheet.



Operating results



For the 12-month period ending 31 December 2005 we are reporting a pre- and
post- tax loss of #274,695. As I mentioned, we are investing both time and
finance in developing, identifying and acquiring suitable projects and we are
not in production.  However we are conscious that we must manage our costs
prudently and I believe following the fund raising we are in a financially
strong position to achieve our corporate objectives. The management team
provides CAG with real ability to make discoveries, is well funded, organised
and skilled with a high degree of corporate governance and I believe the team
will draw on past experience to progress from an explorer to a producer.



Nomad



We have recently signed on Strand Partners as our Nominated Adviser whom I
believe is the right partner to help us grow the Company.



In conclusion, this has been a good year for CAG.  We were able to identify new
business ventures and projects, formed strong relationships with connections in
the west and south Mali region and brought on a very experienced team. The
focused approach has already prioritised a potential hit list of future
opportunities that will fulfil our investment criteria and generate near term
revenue. The Company is confident that the new team will develop CAG into a
significant gold producing and exploration company in the near future. Finally
I'd like to take this opportunity to thank all those involved in the Company and
wish them all well in the future.



Philippe Edmonds
Chairman



28 June 2006



Consolidated Profit and Loss Account
For the year ended 31 December 2005
                                                                Notes                Year 26 November 2003 to
                                                                                    ended         31 December
                                                                         31 December 2005                2004
                                                                                        #                   #

TURNOVER                                                                                -                   -

Operating expenses                                                  2           (310,486)           (123,257)

OPERATING LOSS                                                                  (310,486)           (123,257)

Interest receivable                                                 3              35,791               7,149

LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION                         4           (274,695)           (116,108)

Taxation                                                            6                   -                   -

LOSS ON ORDINARY ACTIVITIES AFTER TAXATION                                      (274,695)           (116,108)

Minority interests                                                                 28,793                 632

LOSS FOR THE FINANCIAL PERIOD                                      14           (245,902)           (115,476)


LOSS PER ORDINARY SHARE

Basic and diluted                                                   7            (0.148p)            (0.094p)








The operating loss for the period arises from the group's continuing operations.





Consolidated Statement of Total Recognised Gains and Losses
For the year ended 31 December 2005
                                                                                   Year  26 November 2003 to
                                                                                  ended          31 December
                                                                       31 December 2005                 2004
                                                                                      #                    #

Loss for the financial period                                                 (245,902)            (115,476)

Foreign currency translation adjustments relating to subsidiary                    
undertakings                                                                       (37)                4,815

Total recognised gains and losses for the period                              (245,939)            (110,661)






Consolidated Balance Sheet
31 December 2005
                                                              Notes                 2005                 2004
                                                                                       #                    #

FIXED ASSETS
Intangible assets                                                 8              286,633              179,823


CURRENT ASSETS
Debtors                                                          10               52,486               67,254
Cash at bank and in hand                                                       1,194,093            1,436,502

                                                                               1,246,579            1,503,756

CREDITORS: Amounts falling due within one year                   11            (177,242)             (52,845)

NET CURRENT ASSETS                                                             1,069,337            1,450,911


TOTAL ASSETS LESS CURRENT LIABILITIES                                          1,355,970            1,630,734


CAPITAL AND RESERVES
Called up share capital                                          12              165,743              165,743
Share premium account                                            13            1,459,793            1,459,793
Profit and loss account                                          14            (356,600)            (110,661)

EQUITY SHAREHOLDERS' FUNDS                                       15            1,268,936            1,514,875

Minority interests                                                                87,034              115,859

                                                                               1,355,970            1,630,734







Approved by the board and authorised for issue on 28 June 2006





Philippe Edmonds
Director





Company Balance Sheet
31 December 2005
                                                              Notes                 2005                 2004
                                                                                       #                    #

FIXED ASSETS
Investments                                                       9              246,060              246,060

CURRENT ASSETS
Debtors                                                          10               49,618               67,007
Cash at bank and in hand                                                       1,120,962            1,237,109

                                                                               1,170,580            1,304,116

CREDITORS: Amounts falling due within one year                   11            (119,221)             (39,401)

NET CURRENT ASSETS                                                             1,051,359            1,264,715


TOTAL ASSETS LESS CURRENT LIABILITIES                                          1,297,419            1,510,775


CAPITAL AND RESERVES
Called up share capital                                          12              165,743              165,743
Share premium account                                            13            1,459,793            1,459,793
Profit and loss account                                          14            (328,117)            (114,761)

EQUITY SHAREHOLDERS' FUNDS                                       15            1,297,419            1,510,775







Approved by the board and authorised for issue on 28 June 2006





Philippe Edmonds
Director





Consolidated Cash Flow Statement
For the year ended 31 December 2005
                                                            Notes                       Year 26 November 2003
                                                                                                           to
                                                                                       ended
                                                                                                  31 December
                                                                            31 December 2005
                                                                                                         2004
                                                                                           #                #
                                                                                                            

Cash outflow from operating activities                         16a                 (174,336)        (133,256)

Returns on investments and servicing of finance                16b                    35,791            7,149

Capital expenditure and financial investment                   16b                 (103,864)         (55,046)

Acquisitions and disposals                                     16b                         -          (7,881)

CASH OUTFLOW BEFORE FINANCING                                                      (242,409)        (189,034)

Management of liquid resources                                 16b                 (878,350)        (168,007)

Financing                                                      16b                         -        1,625,536

(DECREASE)/INCREASE IN CASH IN THE PERIOD                                        (1,120,759)        1,268,495





RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS


                                                                                        Year  26 November 2003
                                                                                                            to
                                                                                       ended
                                                                                                   31 December
                                                                                 31 December
                                                                                        2005              2004
                                                                                           #                 #

(Decrease)/increase in cash in the period                                        (1,120,759)         1,268,495
Cash inflow from increase in liquid resources                                        878,350           168,007

MOVEMENT IN NET FUNDS IN THE PERIOD                                                (242,409)         1,436,502

NET FUNDS AT BEGINNING OF THE PERIOD                                               1,436,502                 -

NET FUNDS AT END OF THE PERIOD                                         16c         1,194,093         1,436,502





BASIS OF ACCOUNTING

The financial statements have been prepared under the historical cost convention
and in accordance with applicable accounting standards.



BASIS OF CONSOLIDATION

The consolidated financial statements incorporate those of Central African Gold
plc and all its subsidiary undertakings.  Subsidiaries acquired during the
period are consolidated using the acquisition method.  The difference between
the cost of acquisition of shares in subsidiaries and the fair value of the
separable net assets acquired is capitalised and written off on a straight line
basis over its estimated economic life.  Provision is made for impairment where
considered necessary.  All financial statements are made up to 31 December 2005.



FOREIGN CURRENCIES

Assets and liabilities denominated in foreign currencies are translated at the
rate of exchange ruling at the balance sheet date.  Transactions in foreign
currencies are recorded at the rate ruling at the date of the transaction.  All
differences are taken to the profit and loss account.



Assets and liabilities of overseas subsidiaries are translated at the rate
ruling at the balance sheet date and the result for the period is translated at
the average rate ruling in the period.  Exchange differences arising are dealt
with through reserves.



INTANGIBLE FIXED ASSETS

All costs relating to the acquisition, exploration and development incurred by
the Company or its subsidiary undertakings on its mineral properties are carried
as intangible assets until such time as it is determined that there are
commercially exploitable reserves at which time such costs will be transferred
to tangible fixed assets to be amortised over the expected productive life of
the asset.  The directors periodically review the intangible assets for
impairment and where a project is abandoned or is considered not to be
economically viable, the related costs are written off.



DEFERRED TAXATION

Deferred tax is recognised in respect of all timing differences that have
originated but not reversed at the balance sheet date where transactions or
events that result in an obligation to pay more tax in the future or a right to
pay less tax in the future have occurred at the balance sheet date.  Timing
differences are differences between the group's taxable profits and its results
as stated in the financial statements that arise from the inclusion of gains and
losses in tax assessments in periods different from those in which they are
recognised in the financial statements.



Deferred tax is measured at the average tax rates that are expected to apply in
the periods in which timing differences are expected to reverse, based on tax
rates and laws that have been enacted or substantially enacted by the balance
sheet date.  Deferred tax is measured on a non-discounted basis.



INVESTMENTS

Investments are stated at cost and provision is made for any impairment in
value.





Notes to the Financial Statements

For the year ended 31 December 2005



1.                  LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION


The group's loss before taxation was all derived from its principal activity
undertaken in Western Australia and Botswana.



2         OPERATING EXPENSES                                                       Year  26 November 2003 to
                                                                                  ended          31 December
                                                                       31 December 2005                 2004
                                                                                      #                    #

          Administration expenses                                             (310,486)            (123,257)



3         INTEREST RECEIVABLE                                                      Year  26 November 2003 to
                                                                                  ended          31 December
                                                                       31 December 2005                 2004
                                                                                      #                    #

          Bank interest receivable                                               35,791                7,149



4         LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION                              Year  26 November 2003 to
                                                                                  ended          31 December
                                                                       31 December 2005                 2004
                                                                                      #                    #
          Loss on ordinary activities before taxation is stated
          after charging:
          Amounts payable to Baker Tilly and their associates in
          respect of both audit and non-audit services
          Audit services

          - statutory UK audit                                                   25,450                5,000
          - statutory overseas audit                                              4,190                1,222
          Tax compliance services                                                 3,000                3,000



5         EMPLOYEES



          There were no employees other than the directors of the company during the period.


                                                                                        Year  26 November 2003
                                                                                                            to
                                                                                       ended
                                                                                                   31 December
          DIRECTORS' REMUNERATION                                                31 December
                                                                                        2005              2004
                                                                                           #                 #

          Amounts payable for directors' services                                     24,000            24,000

          Joint highest paid directors:
            AS Groves     - emoluments                                                12,000            12,000
            PH Edmonds  - emoluments                                                  12,000            12,000








6         TAXATION                                                                      Year  26 November 2003
                                                                                                            to
                                                                                       ended
                                                                                                   31 December
                                                                                 31 December
                                                                                        2005              2004
                                                                                           #                 #
          Current tax:
          UK corporation tax on losses of the period                                       -                 -

          Total current tax                                                                -                 -

          Factors affecting tax charge for period:
          Loss on ordinary activities before tax                                   (274,695)         (116,108)

          Loss on ordinary activities multiplied by the rate of corporation         
          tax for small companies of 19%                                            (52,192)          (22,061)
          Effects of:
          Expenses not deductible for tax purposes                                     1,845             2,326
          Unrelieved tax losses carried forward                                       50,347            19,735

          Tax charge for period                                                            -                 -






The Group and Company's unrelieved tax losses of approximately #321,680 (2004:
#88,000) have not been recognised as a deferred tax asset as there is currently
insufficient evidence that the asset will be recoverable in the foreseeable
future.


7   LOSS PER ORDINARY SHARE


           The calculation of basic and diluted loss per ordinary share is based on the following losses and number of
           shares.
                                                                                                Year  26 November 2003
                                                                                                                    to
                                                                                               ended
                                                                                                           31 December
                                                                                    31 December 2005
                                                                                                                  2004
                                                                                                   #                 #
                                                                                                                     

           Loss for the financial period                                                   (245,902)         (115,476)


                                                                                                2005              2004
                                                                                       No. of shares     No. of shares


           Weighted average number of shares                                             165,742,856       122,387,988



Due to the loss incurred in the period, there is no dilutive effect from the
issue of share options and warrants.




8         INTANGIBLE FIXED ASSETS                                                                  Development
                                                                                                         costs
                                                                                                             #
          GROUP
          Cost
          1 January 2005                                                                               179,823
          Additions                                                                                    103,864
          Exchange rate adjustment                                                                       2,946

          31 December 2005                                                                             286,633



9         INVESTMENTS                                                                                Shares in
                                                                                                    subsidiary
                                                                                                  undertakings
                                                                                                             #

          Company
          Cost
          1 January 2005 and 31 December 2005                                                          246,060




Details of the company's subsidiary undertakings are set out below:


                                          Class of   Percentage       Country of           Nature of business
                                           holding         held    incorporation

Golden Tau Mining Limited                 Ordinary        53.1%        Australia    Australian mining company
*Motako (Proprietary) Limited             Ordinary         100%         Botswana      Botswana mining company
Central African Gold Nigeria Limited      Ordinary         100%          Nigeria                      Dormant
*indirectly held


10        DEBTORS                                     Group            Group          Company          Company
                                                       2005             2004             2005             2004
                                                          #                #                #                #
          Due within one year:
          Other debtors                              52,486           67,254           49,618           67,007




11        CREDITORS: Amounts falling due              Group            Group          Company          Company
          within one year.                             2005             2004             2005             2004
                                                          #                #                #                #

          Trade creditors                            11,778           10,870            4,609            5,401
          Other creditors                            50,503            6,753           40,021                -
          Accruals and deferred income              114,961           35,222           74,591           34,000

                                                    177,242           52,845          119,221           39,401





Included within trade creditors is a credit card balance of #1,367 (2004:
#2,778) which is secured on a cash deposit balance held by the company's
bankers.


12        SHARE CAPITAL                                                            Group and        Group and
                                                                                     company          company
                                                                                        2005             2004
                                                                                           #                #
          Authorised:
          1,000,000,000 ordinary shares of 0.1p each                               1,000,000        1,000,000

          Allotted, issued and fully paid:
          165,742,856 ordinary shares of 0.1p each                                   165,743          165,743




At 31 December 2005, the following share options and warrants over ordinary
shares of 0.1p each of the Company had been granted and not exercised:



Share options:


          Date of grant              Number of shares    Exercise Price                     Exercise Period

          5 March 2004                      10,000,000                1p       5 March 2004 to 4 March 2009
          16 December 2005                  10,000,000             3.11p                 16 December 2005 to
                                                                                            16 December 2010


          Share warrants:

          Number of shares to be issued                  Exercise Price                    Exercise Period

          30,000,000                                                 1p     31 March 2004 to 31 March 2011




The warrants are held in trust.



On 19 January 2004 the company provided a bonus scheme to the directors that, in
the event of the offer proceeding and the company's shares and warrants being
admitted to trading on AIM, upon the trading price for the company's shares
reaching a price of 15p per share, AS Groves, PH Edmonds and RA Pitchford would
be issued 10 million warrants each and that upon the trading price for the
company's shares reaching a price of 25p per share, AS Groves, PH Edmonds and RA
Pitchford would be issued a further 10 million warrants each.  There were no
warrants issued under the scheme during the period.



On 6 March 2006 33m share options were granted with an exercise price of 3.75p.
The vesting period for these options is between 6 March 2006 and 6 March 2013.


13        SHARE PREMIUM ACCOUNT                                                    Group and        Group and
                                                                                     company          company
                                                                                        2005             2004
                                                                                           #                #

          1 January 2005                                                           1,459,793                -
          Premium on shares issued during the period                                       -        1,566,257
          Share issue costs                                                                -        (106,464)

          31 December 2005                                                         1,459,793        1,459,793





Included within share issue costs in 2004 are fees of #12,560 charged by the
company's auditors.


14        PROFIT AND LOSS ACCOUNT                    Group            Group          Company          Company
                                                      2005             2004             2005             2004
                                                         #                #                #                #

          1 January 2005                         (110,661)                -        (114,761)                -
          Loss for the financial period          (245,902)        (115,476)        (213,356)        (114,761)
          Foreign currency translation                (37)            4,815                -                -
          adjustments

          31 December 2005                       (356,600)        (110,661)        (328,117)        (114,761)




In accordance with s230 of the Companies Act 1985, Central African Gold plc has
not presented its own profit and loss account.




15        RECONCILIATION OF MOVEMENT IN              Group            Group          Company          Company
          SHAREHOLDERS' FUNDS                         2005             2004             2005             2004
                                                         #                #                #                #

          Loss for the financial period          (245,902)        (115,476)        (213,356)        (114,761)
          Issue of shares during the                     -        1,732,000                -        1,732,000
          period
          Issue costs                                    -        (106,464)                -        (106,464)
          Exchange rate adjustments                   (37)            4,815                -                -

          Net (reduction in)/addition to
          shareholders' funds                    (245,939)        1,514,875        (213,356)        1,510,775
                                                 
          Opening shareholders' funds            1,514,875                -        1,510,775                -

          Closing shareholders' funds            1,268,936        1,514,875        1,297,419        1,510,775



16        CASH FLOWS                                                                    2005             2004
                                                                                           #                #
a         Reconciliation of operating loss to net cash outflow from
          operating activities
          Operating loss                                                           (310,486)        (123,257)
          Decrease/(increase) in debtors                                              14,768         (67,161)
          Increase in creditors                                                      124,397           48,088
          Exchange rate adjustments                                                  (3,015)            9,074

          Net cash outflow from operating activities                               (174,336)        (133,256)





16                                                                                      2005             2004
                                                                                           #                #

b         Analysis of cash flows for headings netted in the cash flow
          Returns on investments and servicing of finance

          Interest received                                                           35,791            7,149

          Net cash inflow from returns on investments and servicing of                
          finance                                                                     35,791            7,149

          Capital expenditure and financial investment

          Purchase of intangible fixed assets                                      (103,864)         (55,046)

          Net cash outflow from capital expenditure and financial                  
          investment                                                               (103,864)         (55,046)

          Acquisitions and disposals

          Purchase of subsidiary undertaking                                               -        (246,060)

          Cash acquired with subsidiary                                                    -          238,179


          Net cash outflow from acquisition and disposals                                  -          (7,881)


          Management of liquid resources

          Cash placed on deposit                                                   (878,350)        (168,007)


          Net cash outflow from management of liquid resources                     (878,350)        (168,007)


          Financing

          Proceeds from issue of share capital                                             -        1,732,000
          Share issue costs                                                                -        (106,464)

          Net cash inflow from financing                                                   -        1,625,536







                                                                              At 31 December   At 31 December
                                                                                        2005             2004
c         Analysis of net funds                                                            #                #

          Cash at bank and in hand                                                   147,736        1,268,495
          Cash on deposit                                                          1,046,357          168,007

                                                                                   1,194,093        1,436,502






17                RELATED PARTY TRANSACTIONS



Central African Mining & Exploration Company Plc (CAMEC), Capricorn Resources
Plc (Capricorn), African Platinum plc (AP) and White Nile Limited had common
directors with Central African Gold plc.



During the year CAMEC charged management fees to the company of #45,540 (2004:
#Nil).



The company made payments on behalf of CAMEC of #Nil (2004: #26,921), regarding
Capricorn of #4,911 (2004: #Nil), regarding AP of #Nil (2004: #12,000) and
regarding White Nile Limited of #Nil (2004: #6,188). CAMEC also made payments on
behalf of the company of #40,021 (2004: #Nil).  As at 31 December 2005, the
company owed CAMEC #40,021 (2004: #Nil) which is included in creditors.
Capricorn owed #4,911 (2004: #Nil), AP owed #Nil (2004: #6,188), all of which
are included in debtors.



These balances were settled post year end.



9                    POST BALANCE SHEET EVENTS



On 20 April 2006 the company placed 100,008,167 ordinary shares of 0.1p each at
9p raising gross cash proceeds of #9,000,735. These funds will be used for
capital projects which can be brought into production in the short to medium
term.



Further to the announcement of the signing of the joint venture agreement with
the Mali Mining House SA on 16 December 2005, a new limited company, Mali
Goldfields SA was incorporated in Mali on 1 February 2006.  Central African Gold
plc holds an 80% interest in the company in accordance with the joint venture
contract.



Subsequent to the year end, Gold Tau Mining Limited entered into an option
agreement for the purchase of a prospecting licence located in the Republic of
Mozambique.  The agreement provides for the company the sole and exclusive right
to acquire the licence for US$125,000 and conduct exploration on the tenement
during the option period expiring 31 July 2006.  The consideration for the grant
of the option was US$25,000.



The company and CAMEC have entered into an arms length agreement whereby neither
CAMEC nor its management team will take any steps, directly or indirectly,
itself or through any associate company, to exert any influence over the board,
management, administration or business of CAG, including, without limitation,
through its familiarity with the business, activities, management team,
personnel and professional advisers of CAG or through its shareholding in CAG.



All future dealings between CAMEC and its management and CAG will be conducted
on an arm's length and commercial basis. This agreement will remain in force and
of effect until such time that the aggregated shareholding of CAMEC and Messrs
PH Edmonds and AS Groves is less than 10% of the issued share capital of CAG.





10                FINANCIAL INSTRUMENTS



The group's financial assets comprise cash.  The group has various other
financial assets, such as trade debtors and trade creditors that arise directly
from its operations which have not been included in the following disclosures.



The main risks arising from the group's financial instruments are interest rate
risks and liquidity risk. The policies for managing these risks are regularly
reviewed and agreed by the Board.



It is, and has been throughout the period under review, the group's policy that
no trading in financial instruments should be undertaken.



Foreign exchange risk

The functional currencies of the group are Sterling and Australian Dollars.
The group's foreign subsidiaries, as named in note 9, are denominated in foreign
currencies.  The Group does not hedge against the effects of movements in
exchange rates. The risks are monitored by the Board on a regular basis.



Interest rate risk

The group's policy on interest rate management is agreed at Board level and is
reviewed on an ongoing basis.



Interest rate profile of financial assets

The interest rate risk profile of the Group's financial assets as at 31 December
2005 was:


                                                                       Fixed         Floating
                                                                        rate             Rate            Total
                                                                           #                #                #

          Sterling                                                 1,000,000          120,962        1,120,962
          Australian dollars                                          46,357           26,774           73,131

                                                                   1,046,357          147,736        1,194,093

          Of which:
          Cash at bank and in hand                                 1,046,357          147,736        1,194,093




The fixed deposits at 31 December 2005 (2004) are short term deposits. The
Sterling deposit earns interest at 4.281% (2004: Nil) and the Australian dollar
deposit earns interest at 5.35% (2004: 5.23%).



Floating rate instant access deposits in Sterling and Australian dollars earn
interest at prevailing bank rates.



Liquidity risk

It is the group's policy to finance its business by means of internally
generated funds supported by the group's bankers and external share capital.
Facilities are regularly reviewed by the Board.



Facility

The group does not currently have an overdraft facility.



Fair value

There is no material difference between the fair value of borrowings and other
financial instruments and their book value at the balance sheet date.



The interest rate risk profile of the group's financial assets as at 31 December
2004 was:




                                                                       Fixed         Floating
                                                                        rate             Rate            Total
                                                                           #                #                #

          Sterling                                                         -        1,237,109        1,237,109
          Australian dollars                                         168,007           31,386          199,393

                                                                     168,007        1,268,495        1,436,502

          Of which:
          Cash at bank and in hand                                   168,007        1,268,495        1,436,502





                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

FR SEFFWUSMSEEM

Central African Gold (LSE:CAN)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Central African Gold Charts.
Central African Gold (LSE:CAN)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Central African Gold Charts.