Central China Goldfields plc                          

                            `GGG' or `The Company'                             

                              EXPLORATION UPDATE                               

Highlights:

  * High-Resolution Induced Polarisation survey identified potential lateral 
    extension, for about 400 m, of known resources at Qiaoqiaoshang
   
  * Additional trenching and underground sampling to test new areas in
    Shuiniujia and Songpanguo
   
LONDON - 4 August 2005 - Following the Company's update on 9 May 2005, Central
China Goldfields plc (AIM: GGG, GGGW) reports the following results from the
Snow Mountain Project, Sichuan Province.

QIAOQIAOSHANG

The Qiaoqiaoshang deposit consists of a series of discontinuous E-W trending
mineralised bodies. Previous work by our partner the Sichuan Bureau of
Metallurgy and Geological Exploration ("SBMGE") included drilling of 41
vertical holes and development of underground tunnels. Their work identified 9
orebodies covering a cumulative strike of 1,446 metres. SBMGE have calculated
an Inferred Resource of 19 tonnes of gold, of which 2,075,000 t @ 2.21 g/t Au
or 4.6 tonnes of gold (approximately 147,400 ounces) is compliant to the
Canadian 43-101 standard.

We have now completed a High-Resolution Induced Polarisation survey ("IP"), not
previously used in the area. The survey is designed to test the continuity of
known mineralised bodies and to investigate the potential for lateral and
vertical extensions of these bodies.

The survey consisted of close-spaced (50-100 m spacing between stations and
80-100m line spacing) dipole-dipole survey. The survey shows that there is a
continuous zone of clear IP response (high chargeability and moderate
resistivity) overlying known mineralised bodies. The IP anomaly continues for a
further 400 metres westward of the known mineralised bodies. The anomaly
plunges to the west - northwest of the main mineralised bodies drilled todate.

The IP data provides a control to target the underlying gold mineralised zone
(s) with step- out drilling.

Trenching and cleaning of underground tunnels on existing zones have been
completed and results are expected in September.

SHUINIUJIA

The High-Precision Induced Polarisation survey was also conducted over the
Shuiniujia deposit where SBMGE have defined an inferred resource of 4.436
tonnes of gold of which 118,000 t @ 4.89 g/t Au or 0.58 tonnes of gold
(approximately 18,500 ounces) is compliant to the Canadian 43-101 standard.

The presence of carbonaceous material along major fault zones in this area
resulted in a weak IP signal. Similar lack of response has been encountered
previously on other Carlin-type mineralisation in China. The depth extent of
the mineralised zones in Shuiniujia will therefore need to be tested directly
by underground tunnels and/or drilling. The western part of the Shuiniujia
deposit will now be explored by geochemical soil survey to identify additional
targets.

Exploration Manager, Chris Ford, comments "Induced Polarisation results from
the Qiaoqiaoshang deposit is highly encouraging. The survey provides a
cost-effective method of targeting potential extensions to the west and at
depth."

Jeff Malaihollo, Central China Goldfields' Managing Director, states "We are
now awaiting trenching and underground sampling results from the Qiaoqiaoshang,
Songpanguo and Shuiniujia deposits. Upon receiving the results we will assess
and prioritise these three deposits and drill or extend the underground tunnels
to increase the known resources."

Technical information in Company announcements has been received and approved
by Chris Ford MSc. who is the Company's Exploration Manager and is qualified as
a Competent Person under the Code for the Reporting Mineral Exploration
Results, Mineral Resources and Mineral Reserves ("The Reporting Code") prepared
by the Institute of Mining and Metallurgy.

The Canadian 43-101 standard is developed by the Canadian Securities
Administrators to govern how issuers disclose scientific and technical
information about their mineral projects to the public. CSA Associates, who
acted as the Independent Competent Person for the purposes of the Company's
Admission Document to AIM, have not validated these calculations.

Ends

Enquiries:

Central China Goldfields plc       Nominated Advisor:                
                                                                     
Dr. Jeffrey Malaihollo             Ruegg & Co Limited                
                                                                     
Tel: 020 7621-0200                 Brett Miller                      
                                                                     
Email: jeff@ccgoldfields.com       Tel: 020 7584-3663                
                                                                     
www.ccgoldfields.com                                                 
                                                                     
Public Relations:                  Broker:                           
                                                                     
Parkgreen Communications           King & Shaxson Capital Limited    
                                                                     
Victoria Thomas / Justine Howarth  Nick Bealer                       
                                                                     
Tel: 020 7493-3713                 Tel: 020 7426-5986                



END
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