Central China Goldfields plc                          

                            `GGG' or `the Company'                             

                UPDATE: JOINT VENTURE WITH MAJESTIC GOLD CORP.                 

                            OPTION TO PURCHASE 100%                            

LONDON - 31 October 2006

Further to the announcement on 14 September 2006, detailing the terms of the
letter of intent, the Company reports that Majestic Gold Corp. ("Majestic") has
received approval from TSX Venture Exchange for the option agreement. The
option agreement is subject to satisfactory completion of technical, legal and
financial due diligence.

The terms of the letter of intent have been amended, such that GGG has been
granted an option to acquire an initial 50 per cent interest in all of
Majestic's exploration property assets in China (the "Property Assets").

In order to earn the initial 50 per cent interest in the Property Assets, GGG
is required to make cash payments totaling Cdn$12.25 million in three stages.
Majestic will be the initial project operator.Funds advanced by GGG are to be
applied for exploration and development work on the Property Assets.


In the event that GGG terminates the option prior to earning 50 per cent, the
Company will have the right to convert the funds advanced into ordinary shares
in Majestic. Majestic shareholder approval would be required in the event that
GGG were to become a controlling entity of Majestic by converting their
payments into Majestic ordinary shares.


GGG, upon earning its initial 50 per cent interest in the Property Assets, will
then have the right to acquire the additional 50 per cent interest (ie. 100 per
cent of the Property Assets) by issuing to Majestic, at prevailing market
prices, ordinary shares in GGG, with a value equal to the greater of Cdn$20
million or such higher value as may be established by a formal valuation of the
remaining interest. Majestic shareholder approval will be required in the event
that GGG acquires the additional 50 per cent interest.

Further details of the option agreement will be released on completion.

For further information, please contact:

Central China Goldfields                 plc HansonWesthouse LLP

Dr. Jeffrey Malaihollo                   Cailey Barker / Anita Ghanekar

Tel: 020 7621-0200                       Tel: 020 7601 6100

Email: info@ccgoldfields.com

Website: www.ccgoldfields.com

Public Relations: Gresham PR Ltd         King & Shaxson Capital Limited

Neil Boom                                Nick Bealer

Tel: 020 7404-9000                       Tel: 020 7426-5986



END
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