RNS Number:8309F
Central African Gold PLC
17 October 2007

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

17th October 2007



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

 Acquires 100% of Motako gold licence in highly prospective region of Botswana



Central African Gold Plc, the AIM traded gold mining and exploration company,
has acquired 100% of the issued shares and liabilities in Motako Limited ("
Motako") which owns the 430.3 km(2) Kraaipan prospecting licence in Botswana,
for a cash consideration of US$250,000.  Motako, whose licence spans the highly
prospective Archean Kraaipan greenstone belt, was a 100% owned subsidiary of
Golden Tau Limited ("Golden Tau"), of which CAG already owned a 53% controlling
interest.  Following the acquisition, all CAG shares in Golden Tau will be
cancelled.  As part of the transaction, Golden Tau will also assign to CAG an
unsecured interest-free loan, of AU$363,300.82 (approximately US$328,544),
extended to Motako by Golden Tau to fund its exploration activities to date on
the tenement.  The Board believes that by assuming full control of the Motako
project, it can fully utilise CAG's in-house technical team to develop the
region's potential.



The Kraaipan project extends over some 400 km(2) of the north westward strike
continuation of the Archean Kraaipan greenstone belt, originating from South
Africa.  The belt is highly prospective for gold, with past production and
resource figures indicating approximately four million ounces Au at the Gold
Ridge mine in South Africa. To date, Golden Tau has undertaken a detailed
examination of previous reconnaissance work completed in the 1980's. Exploration
included geological mapping, airborne geophysical surveys and limited percussion
and diamond core drilling.  Results indicated gold mineralisation although the
economic viability is yet to be determined.  The 430.3 km(2) Kraaipan
prospecting licence was recently extended for a further two years commencing 1
July 2007 and follow-up exploration to confirm the economic viability has been
scheduled for early 2008.



Greg Hunter CEO of CAG said, "This acquisition is another step in CAG's strategy
to develop a substantial exploration programme in Africa. We believe that the
licence area is prospective for gold and will provide excellent exploration
potential. For this reason we have increased our stake in order to take full
control and use our in-house expertise to fully evaluate the region's potential.
We are rapidly advancing all our projects with the intention of building our
resource base across Ghana, Mali, Zimbabwe and Botswana. In line with this, we
recently reported a circa fourfold increase in our underground Ore Reserves
estimate at Bibiani in Ghana, which marked a significant step in the Company's
development. "



                                  * * ENDS * *



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



Central African Gold Plc
Greg Hunter/Nicole Broome           Tel:       +27 (0) 11 676 2500



In London:
St Brides Media & Finance Ltd       
Hugo de Salis/Felicity Edwards      Tel:       +44 (0) 20 7242 4477



Strand Partners Limited
Simon Raggett  /Braden Saunders     Tel:  +44 (0) 20 7409 3494



RBC Capital Markets
Martin Eales/Andrew Smith           Tel:   +44 (0) 20 7029 7881



In South Africa:
Russell and Associates
Charmane Russell                    Tel:   + 27 (0) 11 880 3924



Notes to Editors:

Central African Gold Plc, admitted to AIM in April 2004, was established to
acquire gold assets with a geographical focus on Africa. The Company has
established a sound portfolio with projects in Ghana, Mali, Zimbabwe and
Botswana. It has a highly experienced management team, which has worked together
for four years managing six underground greenstone gold mining operations and
building exploration portfolios.



CAG's portfolio includes the producing Bibiani gold mine and prospecting
licences in Ghana, which it acquired from AngloGold Ashanti Limited, three joint
ventures in Mali covering 22 prospective permits and a licence in Botswana
covering the extension of the Kraaipan greenstone belt from South Africa. CAG
recently acquired five mines and extensive exploration properties in Zimbabwe.
The management team is evaluating additional prospects in Africa to establish
CAG as a leading mid-tier African gold producer with world class exploration and
production assets.




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

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