CAN Central A.G.

RNS Number:8181K
Central African Gold PLC
20 October 2006


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

20 October 2006

               Central African Gold plc ("CAG" or "the Company")
                               Acquisition update
                 Proposed Acquisition of the Bibiani gold mine
                    and related assets and licences in Ghana
                              Postponement of EGM

On 22 August 2006, Central African Gold plc, the AIM listed gold mining and
exploration company, announced that it had signed a binding agreement to acquire
the Bibiani gold mine and related assets, including the mining lease and
prospecting licence, as well as related liabilities in Ghana from two
subsidiaries of AngloGold Ashanti Limited ("the Acquisition").

Pursuant to the AIM Rules, the Acquisition constitutes a reverse takeover and
consequently the Company published an admission document, dated 28 September
2006, relating to the proposed transaction ("the Admission Document").

In order to finalise the cash element of the consideration the Company proposed
to raise up to #25.2 million by way of a placing. The Company is in the process
of finalising the placing, further details of which, including the placing
price, will be announced in due course.

As stated in the Admission Document, in order for the Acquisition to complete on
1 November 2006 all conditions precedent must have been satisfied by 23 October
2006. However, due in part to delays in regulatory approvals in Ghana, certain
of these conditions have not yet been satisfied. The Company does not now expect
all conditions precedent to be satisfied until after 31 October 2006 and hence
the Acquisition will not complete on 1 November 2006 as originally planned. The
Company remains confident all conditions precedent will be satisfied before 23
November 2006 and the Company now anticipates completing the Acquisition on 1
December 2006.

The proposed transaction is subject to shareholder approval, which was
previously to be sought at the extraordinary general meeting ("EGM") to be held
at Third Floor, Aldermary House, 10-15 Queen Street, London at 9:15 a.m. on 23
October 2006. As a result of the Company's current view on the likely timing for
the completion of the proposed transaction, the Chairman intends to seek
shareholder consent at the EGM to adjourn the EGM to be re-convened at the
earliest possible date following satisfaction of all the conditions precedent at
the same venue of Third Floor, Aldermary House, 10-15 Queen Street, London.

The annual general meeting will still take place on 23 October 2006 as scheduled
and provide for the submission to shareholders of the resolutions referred to in
the notice of that meeting, including election of directors, re-appointment of
auditors, receipt of accounts for the period ended 31 December 2005 and matters
relating to the allotment of securities.

                                  * * ENDS * *


For further information please visit on www.centralafricangold.com or contact:


Greg Hunter            Central African Gold plc         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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