CAN Central A.G.

    RNS Number : 4853B
  Central African Gold PLC
  18 August 2008
   

    Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining
    18 August 2008
    Central African Gold Plc ('CAG' or the 'Company')
    Increases Underground Production at Bibiani Gold Mine

    Highlights:
    *     Underground tonnage and average grade produced have increased to 33,500 tonnes per month ('tpm') at 2.6 g/t Au 

    *     Circa US$ 1.7 million cash operating profit over the past three months up to July 2008

    *     Equipment upgrades implemented to enhance mine haulage capacity and reduce maintenance costs

    *     Underground drilling and sampling programme returning positive orebody grades and widths as good as and, in most cases, better
than expected

    *     Bibiani has a 1.4 million ounce ('oz') gold reserve and a plus 3 million oz gold resource (JORC compliant)

    CAG, the AIM traded gold mining and exploration company, reports continued increases in both tonnage and grade at its Bibiani Gold Mine
('Bibiani') in Ghana.  Underground production has increased to circa 33,500 tpm grading at 2.6 g/t Au in July 2008.  In line with this, the
Company has produced a circa US$ 1.7 million cash operating profit over the past three months to end July 2008.  

    With improving grade trends and recoveries, new fleet and equipment initiatives in place, the ongoing development of the new decline to
increase access to the main underground orebody, as well as an alleviation of short term funding requirements, the Board believes the
Company is in a position to significantly enhance the value of this project and its contribution to group performance. 

    CAG has now addressed a number of difficulties most notably problems with its fleet.  Three fully-paid up new trucks are now on site and
in operation and two new Caterpillar R1700D loaders are expected on site in October.  This new equipment will enhance the haulage capacity
of the mine and help reduce maintenance costs.

    It is anticipated that the two newly purchased trucks will allow Bibiani to continue to build on its increased production experienced
over June and July 2008.  It is also anticipated that the positive trend in terms of the increase in grade will also continue. 

    Furthermore, CAG has improved its process plant by upgrading the oxygen plant and commissioning the Knelson concentrator, In-line
Reactor, Flash float cell, Regrind mill, and the Aachen reactors (oxygen and shear reactor).  These initiatives are aimed at helping to
enhance the recoveries currently being achieved.

    On an ongoing basis the reconciliation between what the Company is mining and the orebody model is circa 95%, with the underground
drilling and sampling programme returning results that show the orebody grade and width to be as good and, in most cases, better than
expected.  Bibiani has a 1.4 million oz gold reserve and a plus 3 million oz gold resource (JORC compliant).

    In addition, the Company has had encouraging results from its development programmes aimed at delivering both short-term oxide surface
mining and larger open cast mining opportunities.  CAG is currently mining opportunistic oxides and is scheduled to continue at a rate of
between 10,000 and 12,000 tpm at a grade of around 1.2g/t Au.

    Central African Gold CEO Greg Hunter said: "We are emerging from a difficult period wiser, more resilient and firm in our convictions
that Bibiani has the makings of a solid, cash-flow generative asset.

    "The positive increases in our underground production figures and the growth of our inaugural operating profits over the last few months
highlight that production and operations are progressing well.  The Board believes with the new initiatives in place including the upgrading
of equipment; this trend improvement is set to continue."

    * * ENDS * *

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

 Greg Hunter/      Central African Gold Plc         Tel: +27(0)11 676 2500
 Nicole Broome
 Hugo de Salis/    St Brides Media and Finance Ltd  Tel: +44(0)20 7236 1177
 Felicity Edwards
 Simon Raggett     Strand Partners Limited          Tel: +44(0)20 7409 3494
 Charmane Russell  Russell and Associates           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 developing Bibiani gold mine and two prospecting licences in Ghana, which it acquired from AngloGold
Ashanti Limited, three joint ventures in Mali covering 17 prospective permits and a licence in Botswana covering the extension of the
Kraaipan greenstone belt from South Africa. During 2007 CAG acquired 5 gold 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.






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