NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES.
CAG - PRIVATE PLACEMENT
Central Asia Gold AB ("CAG") has retained ABG Sundal Collier Norge ASA and SEB
Enskilda ASA to advise on and effect a contemplated private placement of issue
of new shares directed towards professional investors in Sweden and
internationally. The private placement will be carried out through a
book-building process.
The planned share issue will amount to a maximum of 36 million new shares,
equal to approximately 9.83% of existing outstanding shares. Any such new
shares will be issued pursuant to the authorization to the Board of Directors
established at CAG's Annual General Meeting held on June 9, 2006.
CAG has experienced significant growth during the last 12 months. The main
reason for the private placement is to allocate capital needed for the
previously announced acquisition of the gold producing company Artelj Lena.
Central Asia Gold AB
Torbjorn Ranta
Managing Director
For further information, please visit our website www.centralasiagold.se or
contact Mr. Torbjörn Ranta, Managing Director, on telephone +46 8 624 26 80,
fax +46 8 624 27 20, cell phone +46 708 85 55 04 or via email
torbjorn.ranta@centralasiagold.se, address: Brovägen 9, SE-182 76 Stocksund,
Sweden.
Central Asia Gold AB is a Swedish junior mining company focused on gold
production and exploration in Russia and Mongolia in the central parts of Asia.
The gold production was initiated in late January 2005 and the assets today
encompass some 760,000 troy ounces (1 troy ounce = 31.1 g) of Russian gold
reserves C1/ C2.
Cautionary Statement
Statements and assumptions made in this report with respect to Central Asia
Gold AB's ("CAG") current plans, estimates, strategies and beliefs and other
statements that are not historical facts are forward-looking statements about
the future performance of CAG. Forward-looking statements include but are not
limited to those using words such as "may", "might", "seeks", "expects",
"anticipates", "estimates", "believes", "projects", "plans", strategy",
"forecast" and similar expressions. These statements reflect management's
expectations and assumptions in light of currently available information. They
are subject to a number of risks and uncertainties, including but not limited
to (i) changes in the economic, regulatory and political environments in the
countries where CAG operates; (ii) changes as regards the geologic information
available in respect of the various projects undertaken; (iii) CAG's continued
ability to secure enough financing for carrying on its operations as a going
concern; (iv) the success of its potential joint ventures and alliances if any;
(v) exchange rates, particularly between the Russian rouble and the U.S.
dollar. In light of the many risks and uncertainties surrounding any gold
production and exploration company at an early stage of its development, the
actual results could differ materially from those presented and forecast in
this report. CAG assumes no unconditional obligation to immediately update any
such statements and/or forecasts.
