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Central China Goldfields PLC - Drilling Report

Central China Goldfields plc ('GGG' or 'the Company') DONG MAO HUO GOLD PROJECT SUCCESSFUL FOURTH BATCH DRILL RESULTS LONDON - 22 July 2008 - Central China Goldfields plc (AIM: GGG) is pleased to announce the fourth and final batch of drill results from 14 additional holes completed in the May-June 2008 reverse circulation ('RC') drilling programme at the Dong Mao Huo gold project in the Nei Menggu Autonomous Region of Northern China. Highlights: * Results continue to reaffirm the presence of significant gold mineralisation at 1 gramme per tonne gold ('g/t Au') in 6 out of 15 holes. Results include - * Hole RC49 intersected 11 metres of 1.28 g/t Au from 19 metres down hole; * Hole RC44A intersected 10 metres of 1.41 g/t Au from 71 metres down hole; * Hole RC51 intersected 9 metres of 1.52 g/t Au from 12 metres down hole, and 5 metres of 1.37 g/t Au from 5 metres down hole; * Hole RC50 intersected 5 metres of 1.37 g/t Au from 57 metres down hole; * Hole RC47 intersected 7 metres of 0.99 g/t Au from 75 metres down hole and 5 metres of 1.16 g/t Au from 85 metres down hole; * Additionally recent re-logging of ten diamond drill holes, for a total 2,894.80 metres, previously conducted by our partner confirms the presence of gold - base metal mineralisation. Within this programme Hole ZK8-4 intersected 65.8 metres of 1.88 g/t Au and 0.14% copper from 63.6 metres down hole indicating additional base metal potential. * Screen fire assay on selected oxide ore samples from both drillcores and trenches indicates the presence of free gold, a photograph of this is available on the company's website. The presence of these high grade occurrences in the oxide zone highlights the potential for grade enhancement due to the 'gold nugget' effect. * Consistently through the drill programme, assay results from 30 out of 50 holes have confirmed the presence of significant gold mineralisation above 1 g/t Au. In addition a significant number of much higher grade gold pods have been identified. These pods are frequent but unevenly distributed. It is expected that once mining is underway that the distribution of these gold pods will become better understood and more predictable. Jeff Malaihollo, Managing Director of Central China Goldfields, comments: 'This final batch of drill results reaffirms the consistent nature of the gold at Dong Mao Huo which was identified in 60% of our drill holes. We had four distinct grouping of holes each of which returned excellent results. On the back of this success we have now started planning our initial test bulk sampling, this will then likely lead to formal production scheduled to start in early second quarter 2009.' GEOLOGICAL DETAILS: Drilling Results Details: A reverse circulation ('RC') drill programme was undertaken by Beijing Kente Drilling Co. Ltd., a subsidiary of the Drillcorp Group from 4 May to 15 June 2008. The aim is to assist mine planning by infilling the drill grid from 80 x 80 metres to about 40 x 40 metres. The drilling also confirmed that the trend of gold mineralisation is generally northerly which is transverse to the east-west trend of the host rhyodacite breccia. The programme consisted of 50 holes totaling 5,328 metres. To date, the total drilling is 7,129 metres of RC and 5,075.60 metres of core, or a grand total of 12,204.60 metres. This includes 2,894.80 metres drilled previously by our local partner, Shandong Zhengyuan Geology & Resource Exploration Co. Ltd. ('SZGRE'). The gold mineralisation at Dong Mao Huo is associated with a 800m long x 120m wide east-west trending structurally emplaced rhyodacite breccia/dyke in an orthogneiss and schist complex. The gold-base metal mineralisation is generally associated with northerly trending structures characterised by hydraulic emplacement of sulphides along fractures and zones of hydrothermal breccias. The ore minerals are pyrite and chalcopyrite with minor to trace amounts of sphalerite, chalcocite, galena and arsenopyrite as disseminations, fracture and breccia fills. Deep weathering has oxidised the mineralised zone down to about 35 - 50 metres. The fourth and last batch of gold assay results from 15 additional holes (RC23A to RC30A) has been received from the drill programme. The first batch of results from 9 holes was released last 18 June 2008, the second batch on 14 holes last 30 June 2008, and the third batch on 12 holes on 8 July 2008. At about 0.35 g/t Au cut-off, the assay results of the RC holes are outlined in Table 1. Table 1. Summary of significant drillhole assay results Hole No. Hole Azimuth Ore Zone From (m) To (m) Width (m) Au g/t RC44A 90 Oxide 58.00 60.00 2 0.39 RC44A 90 Oxide 64.00 65.00 1 1.27 RC44A 90 Oxide 71.00 81.00 10 1.41 incl. 75.00 80.00 5 2.14 RC46 90 Oxide 9.00 12.00 3 0.77 RC46 90 Oxide 31.00 33.00 2 0.43 RC46 90 Oxide 36.00 39.00 3 0.43 RC46 90 Oxide 45.00 46.00 1 1.21 RC46 90 Oxide 52.00 55.00 3 0.52 RC46 90 Sulphide 125.00 128.00 3 0.53 RC47 90 Oxide 8.00 11.00 3 0.54 RC47 90 Mixed 75.00 82.00 7 0.99 incl. 75.00 76.00 1 1.97 incl. 79.00 81.00 2 1.55 RC47 90 Mixed 85.00 90.00 5 1.16 incl. 87.00 88.00 1 3.71 RC48 90 Oxide 16.00 20.00 4 0.73 RC48 90 Oxide 22.00 29.00 7 0.68 RC49 90 Oxide 13.00 14.00 1 2.41 RC49 90 Oxide 19.00 30.00 11 1.28 incl. 19.00 20.00 1 4.21 incl. 22.00 24.00 2 2.86 RC49 90 Mixed 52.00 54.00 2 0.85 RC49 90 Mixed 58.00 65.00 7 1.09 RC50 270 Oxide 21.00 23.00 2 0.47 RC50 270 Oxide 40.00 43.00 3 0.50 RC50 270 Oxide 45.00 48.00 3 0.55 RC50 270 Sulphide 57.00 62.00 5 1.37 incl. 57.00 58.00 1 4.28 RC51 90 Oxide 5.00 10.00 5 1.37 RC51 90 Oxide 12.00 21.00 9 1.52 incl. 12.00 13.00 1 3.31 incl. 16.00 17.00 1 5.82 RC52 90 Sulphide 42.00 45.00 3 0.57 *No significant results in holes RC44, RC45, RC53, RC54, RC55 & RC56. Silver and Copper grades are not yet available. At about 0.35 g/t Au cut-off, the best results are: hole RC44A intersected 10 metres of 1.41 g/t Au from 71 metres, including 2.14 g/t Au over 5 metres; hole RC47 intersected 7 metres of 0.99 g/t Au from 75 metres and 5 metres of 1.16 g/ t Au from 85 metres; hole RC49 intersected 11 metres of 1.28 g/t Au from 19 metres, including 4.21 g/t Au over 1 metre and 2.86 g/t Au over 2 metres; hole RC50 intersected 5 metres of 1.37 g/ t Au from 57 metres, including 4.28 g/t Au over 1 metre; and lastly, hole RC51 intersected 5 metres of 1.37 g/t Au from 5 metres and 9 metres of 1.52 g/t Au from 12 metres, including 3.31 g/t Au over 1 metre and 5.82 g/t Au over 1 metre. Holes RC54 to RC56 were drilled to test the IP anomaly that extended west of the known West Hill mineralisation. They failed to intersect any mineralisation. It is now clear that the IP anomaly is a false anomaly which was probably due to water saturation of the underlying thick alluvium during the geophysical survey. Recently, the SZGRE diamond drillcores, 10 holes totaling 2,894.80 metres, were re-constructed and logged. At 0.35 g/t Au cut-off, the significant Chinese-standard assay results done by spectrography are shown in Table 2. Table 2. Summary of significant drillhole assay results from previous holes Hole No. Location Hole Ore Zone From (m) To (m) Width (m) Au g/t Cu % Azimuth ZK4-2 West Hill 0 Oxide 43.7 46.1 2.40 1.39 N.A.* ZK4-2 West Hill 0 Oxide 48.20 51.50 3.30 0.64 N.A. ZK6-4 West Hill 0 Oxide 30.40 36.30 5.90 1.46 N.A. Incl. 32.80 35.20 2.40 2.75 N.A. ZK6-4 West Hill 0 Mixed 55.40 59.90 4.50 0.66 N.A. ZK6-4 West Hill 0 Sulphide 65.70 68.00 2.30 0.39 N.A. ZK6-4 West Hill 0 Sulphide 101.20 111.30 10.10 1.42 N.A. Incl. 102.40 104.70 2.30 3.33 N.A. ZK7-2 East Hill 0 Oxide 13.60 18.50 4.90 0.40 N.A. ZK7-2 East Hill 0 Oxide 21.60 34.10 12.50 0.52 N.A. ZK7-2 East Hill 0 Sulphide 132.70 136.10 3.40 0.73 N.A. ZK8-2 West Hill 180 Mixed 28.10 30.20 2.10 0.62 N.A. ZK8-2 West Hill 180 Sulphide 60.70 73.80 13.10 0.41 N.A. ZK8-4 West Hill 0 Sulphide 63.60 129.40 65.80 1.88 0.14 Incl. 76.30 82.80 6.50 6.83 0.92 Incl. 101.50 122.10 20.60 2.57 0.06 Incl. 127.80 129.40 1.60 2.44 0.11 *Not Analysed by local partner. No significant results in holes ZK4-4, ZK4-6, ZK5-4, ZK12-2 & ZK54-2. In order to quantify the presence of free gold, twenty oxide ore samples from drillcores and trenches were analysed for screen fire assay. It is concluded that free gold occurs both in the minus and plus 75 microns size fractions in both West Hill and East Hill. There is more gold in the plus 75 microns fraction but not excessively predominant. The presence of the free gold in the plus 75 microns fraction in the oxide zone highlights the potential for grade enhancement due to the 'gold nugget' effect. Sampling and Analytical Details RC drilling uses 139.7mm sized drill rods producing about 25-30 kilograms of crushed rock every one metre of drilling with largest fragment size at about 1 centimetre. Samples were taken every one metre and split down to about 1.5-2 kilograms using a Jones sample splitter at the drillsite. Sample preparation and chemical analysis were done by Intertek Testing Service Ltd. Shanghai at Beijing ('Intertek'). Sample preparation involves crushing and pulverisation of the subsamples to minus 75 microns. Gold was analysed by 50 grammes fire assay with AAS finish and 34 other elements by inductively coupled plasma-optical emission spectroscopy (ICP-OES). Three of the 35 elements are reported here: gold (Au), silver (Ag) and copper (Cu). The detection limits for Au, Ag and Cu are 0.005, 0.1 and 1 part per million (ppm) respectively. Routine international-standard quality assurance/quality control (QA/QC) procedures were adopted. Duplicate sampling was done every tenth sample at the drillsite and Intertek utilised internal standard procedures for standard, blank and replicate sample testing. The screen fire assay was also undertaken by Intertek. The samples were sieved to minus 75 microns. The minus and plus 75 microns size fractions were weighed and analysed by 50 grammes fire assay with AAS finish. The total gold content of each sample was recalculated by adding up the gold present in the two size fractions. Technical information in the Company news releases has been reviewed and approved by Ciceron 'Jun' Angeles (MSc. FAusIMM, CPGeo) the Company's Vice President - Exploration. He is qualified as a Competent Person under the Code for the Reporting Mineral Exploration Results, Mineral Resources and Mineral Reserves, 2004 ('The Reporting Code') prepared by the Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. For Further Information: Central China Goldfields plc Hanson Westhouse Limited Dr. Jeffrey Malaihollo Anita Ghanekar / Martin Davison Tel: 020 7621 0200 Tel: 020 7601 6100 Email: [email protected] www.ccgoldfields.com Neil Boom Bishopgate Communications Ltd Tel: 020 7562 3367 END

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