Central Asia Gold AB´s (publ) ("CAG" or "the Company") gold production during
the current fiscal year is progressing according to plan and the objective of
increasing the production by 50 percent to approximately 1 000 kg remains.
Today, The Board makes the assessment that the Company may produce 2 000 kg in
2011, based on further production increases secured by the forthcoming rights
issue.
The gold production from CAG´s existing deposits is progressing according to
plan. To date, CAG has produced approximately 200 kg of gold and the Company's
previously announced production forecast of 1 000 kg of gold for the full year
remains. Based on the results thus far, the Board makes the assessment that the
Company will reach a positive operating cash flow during the fiscal year 2010.
Furthermore, the Company has been able to secure funding from several Russian
banks which has enabled CAG to start construction and updates of the heap
leaching plants in Tardan and Solcocon earlier than planned. Altogether, the
Board estimates that the CAG, based on the above mentioned reasons and the 100
percent guaranteed rights issue, has the potential to increase the current
year´s forecasted production of 1 000 kg to 2 000 kg in 2011.
Comments from the main shareholder and CEO of CAG Preston Haskell:
"It is extremely gratifying that our hard work has started to pay off and that
the everything now is starting to fall into place. With the 100 percent
guaranteed rights issue and based on the good results we have seen so far, I am
convinced that we are heading towards a very bright future."
Central Asia Gold AB (publ)
The Board of Directors
Additional information:
Short name: CAG
ISIN-code: SE0001337213
For more information, please contact:
Lars Guldstrand, Chairman of the Board, phone +46 70 528 8181
e-mail: lars.guldstrand@centralasiagold.se
Preston Haskell, CEO, phone +46 768 90 55 49
e-mail: preston.haskell@centralasiagold.se
Website: www.centralasiagold.se, Postal and visiting address: Engelbrektsplan
2, 4tr
SE-114 34 Stockholm
Central Asia Gold AB is a Swedish mining company focused on gold production and
exploration in Russia in the central parts of Asia. The gold production was
initiated in late January 2005 and the assets were as at end of 2008 estimated
to encompass some 800,000 oz of C1/ C2 Russian gold reserves.
Since July 19, 2010, CAG´s shares are traded on First North Premier at the
NASDAQ OMX Nordic Exchange under the short name CAG. For more information
please visit www.centralasiagold.se. Mangold Fondkommission is Certified
Adviser to CAG, for more information please call +46 8 503 015 50 or visit
www.mangold.se.
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
This press release shall not, directly or indirectly, be released, published or
distributed in or to the United States, Australia Japan, Canada, New Zealand,
Hong Kong, South Africa or other country where such action as a whole or in
part is subject to legal restrictions. Nothing in this press release should be
considered as an offer to invest or otherwise trade in shares of Central Asia
Gold AB (publ). The proposed issue will not be directed at residents or those
living in the United States, Australia, Japan, Canada, New Zealand, Hong Kong,
South Africa or other country where such action would require further
prospectus, other offering documentation, registration or other measures beyond
those required by Swedish law. No securities will be registered under the
United States Securities Act of 1933, a similar law in any state in the United
States, or under any provincial law in Canada, nor under the applicable law of
another country.
