CAN Central A.G.

RNS Number:5751E
Central African Gold PLC
26 September 2007

 Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining



26th September 2007



               Central African Gold Plc ("CAG" or the "Company")

CAG reports circa fourfold increase in underground Ore Reserve estimates to 1.05
                million oz Au at its Bibiani gold mine in Ghana



Central African Gold Plc, the AIM traded gold mining and exploration company, is
pleased to announce an increased ore reserve estimate following revised mineral
resource estimation, mine planning and scheduling at its Bibiani gold mine,
Ghana.



Highlights:



  * Bibiani Main Zone underground Ore Reserve estimate increases to 9.18
    million tonnes ("Mt") at 3.57 g/t Au for 1.05 million oz Au at a cut off
    grade of 2.00 g/t Au (JORC compliant)
  * The Ore Reserves have been estimated from within Measured and Indicated
    Mineral Resources totalling 13.32Mt at 3.66 g/t Au for 1.57 million oz Au at
    a cut-off grade of 2.00 g/t Au (JORC compliant), as compared to the
    Company's resources update in July 2007 which cited Measured and Indicated
    Resource totalling 14.49Mt at 3.38g/t Au for 1.56 million oz Au at a cut off
    of 2.00g/t Au, (JORC compliant)
  * The Ore Reserve upgrade represents a circa 391% increase on those stated
    in the Company's last reserves update in February 2007 (214 koz Au)
  * Two hydraulic underground drilling rigs have been commissioned, and have
    commenced stope delineation and cover drilling



Greg Hunter, CEO of CAG, commented, "This circa fourfold increase in our
underground Ore Reserves estimate for the Bibiani orebody marks a significant
step in CAG's economic development of the Bibiani gold mine and continued
delivery of its strategy to its shareholders. The increase in Ore Reserves is a
direct result of continued geological assessment, refined Mineral Resource
estimation procedures, as well as the optimisation of mine planning and
scheduling of the orebody. We are well advanced with the deployment of the
trackless mining method with all of our critical mining development equipment
now on site and operating. Modification of existing infrastructure and
underground development has now commenced.



"The Ore Reserve estimate further underpins our confidence in the potential for
the development of a +10 year viable underground mining operation. In fact, we
have initiated a feasibility study to assess extracting these reserves at a
higher rate than our initially planned 100,000 tonnes per month ("tpm"). The
engineering design specifications for the conveyor system in the conveyor
decline are for 200,000 tpm and the process plant is capable of treating 225,000
tpm. With growing confidence in the sustainability of the orebody, there is a
real opportunity to increase our annualised ounce production to over 150,000 oz
per year.



"Bibiani has continued to fulfil its potential in providing us with a
multi-million ounce gold resource with global underground resources now standing
at just under 3 million oz. Our strategy of becoming a leading mid-tier African
gold producer with world class exploration and production assets is, I believe,
already becoming a reality."



Background:



The Bibiani gold mine has historically produced approximately 4 million oz Au
from a combination of high-grade underground (1902-1967) and opencast
(1997-2005) mining. The historic underground mining exploited various narrow
(1-5m) zones of mineralisation via three vertical shafts, and using a cut-off
grade of 7 g/t Au extracted approximately 2 million oz Au at an average
recovered grade of 9 g/t Au.  The more recent opencast operation mined the
broader mineralised "halo" (widths up to 100m, but generally 15-25m) at an
average recovered grade of 3.5 g/t Au.  Approximately 1.7 million oz Au were
recovered from the Bibiani main pit with a number of smaller satellite pits and
a tailings re-treatment operation further contributing to a total of 2 million
oz Au from more recent operations.



CAG is currently developing a mechanised long-hole open stoping operation below
the main Bibiani open pit, initially through the extension of an existing
decline to 9 level (approximately 270 metres below surface). During Q3 2008, CAG
intends to commission a 2.8km decline from the run of mine ("ROM") pad which
will allow for both the conveyance of ore as well as access for man and
materials. The conveyor decline will have a design capacity of 200,000 tpm. CAG
has contracted a small select team of experienced Australian and South African
mining and engineering personnel to spearhead the initial development phase of
the mine. The bulk of the mining equipment is already commissioned underground,
with delivery of the balance due shortly. Initial underground development has
commenced, with old stope cleanup in progress, whilst initial stoping is
anticipated at the end of November 2007.


The Bibiani process plant (Lycopodium 1997) has a capacity of 225,000 tpm.
Underground production is phased to achieve 100,000 tpm during Q3 2008. The
favourable geology and drilling results are providing impetus to assess
expanding planned output to over 150,000 tpm.



Revised Ore Reserve estimation



Snowden Mining Consultants (Pty) Ltd. ("Snowdens") has been retained by CAG in
an advisory capacity for the mineral resource estimation procedures. Ukwazi
Mining Consultants (Pty) Ltd ("Ukwazi") has been retained to complete the first
phase of mine planning, stope design and scheduling at Bibiani. The current Ore
Reserve statement, which has been undertaken by CAG, is JORC compliant, and
signed off by CAG's Competent Person, Mr Phil Bentley. This estimate follows on
from previous Ore Reserve estimates (September 22, 2006 and February 26, 2007)
where the underground Ore Reserves at Bibiani were undertaken by Snowdens/Ukwazi
/CAG using Surpac and Datamine software. A fully audited statement of the
current estimate will be finalised by 31 December 2007.



The Ore Reserves are stated at a gold price of US$ 600/oz, and an operational
paylimit of 2 g/t Au. Stopes have been designed based on a 2 g/t Au cutoff.



Underground Ore Reserves


The Ore Reserve estimate is based on a continued refinement of first principle
geological modelling and mineral resource estimation on the main Bibiani ore
body, coupled with detailed mine planning and scheduling. The mineral resource
estimation within the stope outlines has been refined to 7.5m x 7.5m x 3m blocks
within five geological domains (as compared to the July 2007 mineral resource
estimate that used 15m x 15m x 5m blocks). The smaller block size has provided a
more accurate tonnage and grade estimate. Modelling of the geological zones was
achieved by sectional digitising of geological units and alteration zones,
especially silicification, brecciation and sulphidation.  Gold grades for the
reported underground resource model have been determined using Ordinary Kriging
with grades interpolated into the parent blocks. The gold content estimation was
constrained within a stope outline wireframe at a 2g/t Au cut-off. Modifying
factors applicable to the long-hole open stoping mining method have been
developed by Ukwazi, and have been applied to converting stope outlined
resources to Ore Reserves.



The extractable Proven and Probable Ore Reserve estimates within each stope have
been generated by modifying the relevant in-stope Mineral Resources. These were
classified according to the distribution of sampling in the Ordinary Kriging
neighbourhood, utilising a combination of the normalised variance, sample
density and spatial continuity (>92.5% confidence Measured, 70-92.5% confidence
Indicated,

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