75mil cash in bank market cap 50mil

12 October 2006
The Listings Manager
The Australian Stock Exchange
2 The Esplanade
Perth WA 6000
Dear Sir
FULL CASH SETTLEMENT OF TALDY BULAK DISPUTE
The Board of Central Asia Gold Limited (“the Company”, “CGX”) announces that the Company has resolved its dispute with its partner in the Taldy Bulak Project, the Government of the Kyrgyz Republic and its agencies.
All parties have agreed to release all future actions in connection with the dispute over title to the Taldy Bulak Project (“the Project”) and have entered into settlement agreements formalising CGX’s withdrawal from the Project and Kyrgyzstan The Company has also sold its interests in the exploration projects in the south of the Kyrgyz Republic. CGX will refocus its resources on its new projects in Zambia and Nigeria and other new business development opportunities.
In consideration for the abovementioned transactions, the Company has received a net cash consideration of approximately A$20m (US$15m) which increases our cash resources to A$78m or A$0.65 per share before attributing any value to its other copper and gold interests.
The Company is well positioned to capitalise on new opportunities and together with its interests in Zambia and Nigeria it is committed to securing control of a new resource property of significant scale to further enhance shareholder value.
Contacts
Should you have any queries or require further information, please contact Mr Mark Savage (US contact) or Mr Michael Carrick (Australian contact).
US Contact
Chairman – Mark Savage
Tel: +1 505 344 2822
Fax: +1 505 344 2922
Email: [email protected]
Australian Contact
President & CEO – Michael Carrick
Tel: +61 8 9263 4000
Fax: +61 8 9263 4020
Email: [email protected]
Yours Sincerely
MICHAEL CARRICK
President and Chief Executive Officer