CAN Central A.G.

RNS Number:7711G
Central African Gold PLC
26 July 2006

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


26 July 2006

               Central African Gold Plc ("CAG" or "the Company")
     Joint Venture to Explore Prospective Medinandi Permit in Western Mali


Central African Gold Plc, the AIM listed gold mining and exploration company,
has entered into a Joint Venture with the Malian exploration company Mani SARL
('Mani') to explore three gold exploration permits in the prospective Kenieba
district in western Mali.  CAG will fund exploration on the properties through a
Joint Venture company, of which CAG will hold an 80% equity interest and Mani
20%. The initial programme will focus on the 154km(2) Medinandi permit which
overlays structural splays from the Senegal-Mali shear zone ('SMZ'), a formation
associated with multi-million ounce gold deposits such as Sadiola and Loulo/
Yalea.

CAG has initiated the collation of existing geological data and has planned a
systematic exploration programme for the property. Enhanced Aster satellite
imagery and structural interpretations, coupled with multi-element soil
geochemistry and geospatial information systems ('GIS') syntheses, provides the
basis for target prioritisation. A number of "walk-up" drill targets have
already been identified, including validation of previous drilling and inferred
resources. It is anticipated that the drilling programme will commence in the
fourth quarter of 2006. CAG has committed up to US$2.5 million exploration
expenditure to the end of 2007, of the US$15 million cash on hand.

The Medinandi permit is situated in the southern part of the Kenieba window of
lower Proterozoic age Birimian strata, roughly 150km south-west of the town
Kenieba. It covers the southern extension of the SMZ zone of Randgold Resources
Limited's Loulo permit. Gold was first discovered on the permit by a French
geologist in 1953, and following a number of more recent exploration programmes
in the late 1990's, it has remained largely under-explored due to thick soil
cover.

To date a zone of mineralisation at Medinandi North has been drilled (RC and
diamond). The mineralisation is marked by extensive silica alteration controlled
by the emplacement of evolved granitic intrusions into structurally favourable
sites along a granite - metasedimentary contact zone.  The initial testing is
consistent with results extrapolated from major deposits already located in the
Kenieba area of western Mali.

CAG CEO Greg Hunter said: "We are very excited about the opportunities Medinandi
provides CAG as it gives us a foothold in a historically proven belt that has to
date delivered approximately 20 million ounces of gold. We want to advance the
permit areas as quickly as possible and deliver on our ambition of becoming a
significant African based gold company. Our exploration team has considerable
experience in west Mali, and understands the geology well. We are looking
forward to working with our partners and I believe this relationship not only
underlines our strategy and commitment but also consolidates our position in a
region that is attracting increased attention due to its prospectivity.
Furthermore, CAG is developing strong strategic relationships with both the
Malian Government and the private sector that bode well for the future of our
business activities in the country."

CAG also manages the Mali Goldfields SA JV with Mali Mining House SA, where an
initial package of 24 permits covering around 2,500 km(2) in south and west Mali
is in the process of being refined. Follow-up targets are now being prioritised
for the 2007.

In the event of the exploration programme being successful, a separate company
will be formed for the development of the resultant project whereby the Mali
Government would be entitled to a 10% free carried interest.



                                  * * ENDS * *

For further information please contact or visit the Company website on
www.cag-plc.com

Greg Hunter           Central African Gold              Tel: +27 (0)82 882 4222
Hugo de Salis         St Brides Media & Finance Ltd     Tel: +44 (0)20 7242 4477
Simon Raggett         Strand Partners Limited           Tel: +44 (0)20 7409 3494


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