Central China Goldfields plc                          

                            (GGG or the 'Company')                             

                           Majestic Option Agreement                           

London, 4 January 2007 - Further to the announcement of 18 December 2006,
Central China Goldfields plc (AIM: GGG) advises that it has been unable to
agree a mutually agreeable revised schedule of payments for the proposed Option
Agreement with Majestic Gold Corp ("Majestic"). Accordingly, the directors of
the Company, after due and careful consideration, have exercised their
discretion not to proceed with the Option Agreement with Majestic.

Consequently the proceeds from the recent placing will be used to accelerate
exploration and development of the Company's existing properties, described
below, in particular its Nimu copper project and the Snow Mountain gold
project. The Company will also continue to pursue further suitable
opportunities in China.

Nimu is a large copper project with reported inferred resources of over 1.3
billion pounds of copper with an average grade of 1.1% Cu (Chinese standards).
The Company has identified eight targets where copper may be concentrated in
enriched supergene layers. Geophysical work on two out of these eight targets
has shown very promising drill targets. The Company plans to drill these
targets in March / April 2007. The Company will issue an update on the Nimu
project shortly.

The Snow Mountain Project is a Carlin-style gold mineralisation with reported
resources of approximately 1 Moz (Chinese standards), of which approximately
225,000 oz are international standards. In 2006 the Company scout drilled two
of the deposits and we will report on an update of the international standard
resource calculations in the near future.

Subject to any possible re-negotiation of the Option with Majestic, the Company
will convert its initial investment of CAN$ 1.5 million, under the Option
Agreement to 3 million Ordinary Shares of Majestic.

Technical information in Company news releases has been reviewed and approved
by Dr. Jeffrey Malaihollo. He holds a BA and PhD in Geological Sciences and is
a Fellow of the Geological Society.

For further information, please contact:

Central China Goldfields plc           Hanson Westhouse Limited              
                                                                             
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                    



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