INTERIM REPORT FOR THE FOR THE TWELVE MONTH PERIOD JANUARY - DECEMBER 2008

• On December 22, 2008 an EGM in Central Asia Gold approved of the acquisition
in kind of Russian gold mining group New Mining Company ("NMC"). Payment is 3
billion new CAG shares and 500 million warrants each with a strike price of SEK
0.20 per share. As a result of the share issue the owners of NMC will become
dominant owners of CAG. NMC owners have received exemption from the mandatory
bid rules in Sweden. The transaction is to be formally completed within the
next few days. 

• The 2009 gold production target for the new combined company is 800 kg - 1
000 kg provided sufficient external financing is received in a timely manner
and total approved gold reserves C1/C2 are expected to reach 30 - 35 tons at
year end 2009. As per the report date they amount to approximately 25 tons. 

• At the same EGM it was approved to dividend out (spin off) all the remaining
shares held by CAG AB in subsidiary Kopylovskoye AB. The dividend was effected
in late December 2008 and as a result Kopylovskoye AB now has some 4,700
shareholders. The dividend everything else equal reduced CAG AB group's total
assets by some MSEK 220 and group equity by some MSEK 109. 

• CAG group gold production during 2008 amounted to 834 kg (1,073 kg in 2007),
whereof 116 kg were produced during the quarter October - December 2008 (250
kg). 

• The new gold reserve report in respect of the Tardan deposit was approved in
the fourth quarter of 2008. The registered reserves are 8.4 tons in the C1 and
C2 categories. During December 2008 8.1 tons of C1/C2 reserves were also
approved in respect of the Bogomolovskoye deposit belonging to new subsidiary
GRE 324 (ongoing acquisition from NMC group). 

• Consolidated revenues for financial year 2008 amounted to TSEK 230,203 (TSEK
231,597). The corresponding figure for the last quarter (October - December
2008) was TSEK 24,534 (TSEK 81,560). 

• The net result after tax for the report period was TSEK -91,185 
(TSEK -2,689). For the fourth quarter the net result after tax amounted to TSEK
-24,078 (TSEK -9,611). The net result for the report period includes an
impairment charge relating to OOO Artelj Lena and OOO Artelj Tyva amounting to
TSEK -44,033. Also, it includes a realization loss of TSEK -11,831 relating to
the sale of 12.5% of the shares of Kopylovskoye AB to a group of external
investors. 

• EPS was SEK -0.186 for financial year 2008 (SEK -0.014). For the last quarter
of the report period, EPS was SEK -0.043 (SEK -0.027). 



Comments by the Managing Director 

The fourth quarter of 2008 was yet another very turbulent period for the global
economy including for Russia and Central Asia Gold. As opposed to most other
commodities, the price for gold at least held up rather well thus giving a
little relief to our sector. 
In Russia, the effects of the crisis have in the gold sector during early 2009
inter alia been a sliding rouble and falling fuel prices. These factors are
positive to CAG, although not necessarily to the Russian economy as a whole. 
As discussed in the last interim report the overall situation for our company
with a falling gold production during the second half of 2008 as compared to
the previous year was challenging. The Tardan project went through the
compulsory reserve approval procedure in November, and as a result 8.4 tons of
gold reserves C1/C2 were registered. The recommended enrichment scheme is a
heap leaching plant. In order to construct it more financing is needed. With
this background, the Board of Directors in the fourth quarter of 2008 proposed
to first dividend out the Kopylovskoye AB subsidiary to CAG's shareholders and
then to merge the remaining CAG AB with Russian gold mining group NMC. A number
of synergies are believed to arise as a result of the merger, and in particular
NMC's main owner Preston Haskell has undertaken to guarantee the financing need
for the combined group in 2009. The merger proposal was approved by an EGM in
CAG and completion is due in the next few days. At year end 2009 the new group
is estimated to have approved gold reserves C1/C2 of 30 - 35 tons and gold
production during 2009 is estimated to end in the range 800 kg - 1,000 kg
provided sufficient external financing is received in a timely manner . 


Torbjörn Ranta, Managing Director 


(For full report see attached file)