GGG Ggg Resources

    Central China Goldfields plc                          

                      INSTITUTIONAL PLACING RAISES �3.75M                      

LONDON - 18 December 2006

Central China Goldfields plc ("GGG" or the "Company") is pleased to announce
that it has completed the Placing of 31,250,000 new ordinary shares of 1p each
("Placing Shares"). The shares were placed with institutional and other
investors at a price of 12 pence per share, raising �3.75 million before
expenses (the "Placing").

In addition, the Company also has received applications to exercise 1,040,000
warrants to subscribe for new ordinary shares ("New Shares") at an exercise
price of 10 pence per share.

The purpose of the Placing was to accelerate development of the Company's gold
and copper projects in China, and subject to, inter alia, a revised schedule of
payments being agreed by both parties, to exercise the Option Agreement with
Majestic Gold Corp. With the new funds raised from the Placing and the exercise
of warrants, the Company will have over �5.0 million in cash.

Following the Admission, the Placing Shares and the New Shares will rank pari
passu in all respects with the existing issued ordinary shares of 1p each in
the Company.

The total number of ordinary shares in issue following the Placing and exercise
of warrants will be 114,299,025.

Applications have been made for the Placing Shares and the New Shares to be
admitted to trading on AIM on 21 December 2006 ("Admission").

The total remaining number of 10p warrants exercisable up to 30 April 2007 is
7,013,237.

Following the Admission the following parties will have notifiable interests:

JP Morgan Fleming                                    10,000,000      8.75%   
                                                                             
Genesis Investment Management Ltd.                   7,500,000       6.56%   
                                                                             
D.S. & Co. (Sheepfarming) Ltd and related parties    6,585,000       5.76%   
                                                                             
Paul Mc Groary & Tipakorn Anuvatnujotikul            4,000,000       3.50%   
                                                                             
Phoenix Gold Fund                                    3,433,333       3.00%   

In addition, certain Directors of the Company participated in the Placing and
the following are changes in those Directors interests:

                             Revised number of     Interest in the Company's  
                                shares held          issued share capital     
                                                      following Admission     
                                                                              
Nigel Bruce Clark                 700,000                    0.61%            
                                                                              
Jeffrey Malaihollo &             1,031,965                   0.90%            
family                                                                        
                                                                              
John C Forrest                   1,300,000                   1.14%            

Certain of the directors listed above have invested in the Placing. This
constitutes a related party transaction under the AIM Rules. The independent
directors having consulted with HansonWesthouse, the Company's Nominated
Adviser, consider the terms of the Placing to be fair and reasonable in so far
as shareholders are concerned.

Dr. Jeff Malaihollo, Managing Director of Central China Goldfields plc,
comments:

"We are pleased by the level of interest we received in Central China
Goldfields, and are delighted to welcome new institutional investors to our
shareholder base."

For further information, please contact:

Central China Goldfields plc           Hanson Westhouse LLP                  
                                                                             
Dr. Jeffrey Malaihollo                 Anita Ghanekar / Cailey Barker        
                                                                             
Tel: 020 7621 0200                     Tel: 020 7601 6100                    
                                                                             
Email: info@ccgoldfields.com                                                 
                                                                             
www.ccgoldfields.com                                                         
                                                                             
Gresham PR Ltd                         King & Shaxson Capital Limited        
                                                                             
Neil Boom                              Nick Bealer                           
                                                                             
Tel: 020 7404 9000                     Tel: 020 7426 5986                    



END

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