PRESS RELEASE 2008-12-10


Central Asia Gold AB ("CAG") conducts limited directed issue of 497,264 shares
in order to create a suitable capital structure in connection with the planned
dividend of the Kopylovskoye AB subsidiary shares to the CAG shareholders 

CAG AB has today, in accordance with previously distributed information,
decided to conduct a directed issue of 497,264 shares. The decision enables to
dividend out the remaining 62.5% of the Kopylovskoye AB subsidiary shares to
the CAG shareholders according to the so called "Lex Asea". The decision is
planned to be approved on the Extraordinary General Meeting, which will take
place on December 22, 2008. 

In order to facilitate a simple dividend of the Kopylovskoye AB shares in the
proportion 1:1 (one distributed Kopylovskoye AB share for each existing CAG
share) the share capital structure of Kopylovskoye AB is being adapted.
Concretely this implies that the shares of Kopylovskoye AB are first split
849:1 so that the number of outstanding shares increases to
849,000,000.Thereafter CAG's holding of Kopylovskoye AB shares will amount to
530,625,000. In CAG there are currently 530,127,736 shares outstanding.
Therefore an additional 497,264 shares are being issued. The insurance company
Bliwa Livförsäkring is assisting as subscriber to this directed issue in order
to facilitate a quick, simple and cost effective dividend for all involved
parties. The issue price is SEK 0.20 per share. 


For more information, please contact:

MD Torbjorn Ranta, tel: +46 (0)8 624 26 80, fax: +46 (0)8 624 37 20, mobile
phone: +46 (0)70 8 85 55 04, e-mail: torbjorn.ranta@centralasiagold.se,
Website: www.centralasiagold.se, Postal and visiting address: Brovägen 9,
SE-182 76 Stocksund 

Central Asia Gold AB is a Swedish 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 were as at end of
2007 estimated to encompass some 645,000 troy ounces (1 troy ounce = 31.1 g) of
C1/ C2 Russian gold reserves. 


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 relating to the geological information available in respect of the
various projects undertaken; (iii) CAG's continued ability to secure enough
financing to carry 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 the 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. 

Attachments

081210_press release 2008.pdf