Central Asia Gold AB and Centerra Gold Inc. announces the update on Kara-Beldyr JV

Stockholm, 2012-02-10 08:30 CET (GLOBE NEWSWIRE) -- Update on investment and ownership

Central Asia Gold AB and Centerra Gold Inc. announces today that in January 2012 Centerra Gold Inc. completed the investment of $ 6.5 million in exploration on the Kara Beldyr property, located in the Tyva Republic, Russia. Centerra Gold has now earned a 70 % interest in the Kara-Beldyr Joint Venture.

Central Asia Gold AB intends to keep its 30% share of the investment in the license and will continue to be involved in the further exploration of the area.

Central Asia Gold AB and Centerra Gold Inc. entered into a joint venture agreement in September 2008 covering the Kara Beldyr property. Starting in the fourth quarter of 2008, Centerra carried out a program of geological mapping, geochemical sampling and a ground magnetic survey over the entire property. Trenching and IP surveys have been completed over

the three primary prospects, the Gord, Ezen and Camp prospects.

Estimated resources

Based on the drilling results obtained at the end of 2011, the resource estimate for the Gord Zone indicated resource of 289,000 ounces of contained gold and an inferred resource of 211,000 ounces of contained gold, a total of 500,000 ounces.

The preliminary resource estimate for the Gord zone was prepared by Centerra’s technical services department and is outlined in Table below. It has been estimated and classified in accordance with those standards defined by the Canadian Institute of Mining, Metallurgy and Petroleum, 2010 Definition Standards for Mineral Resources and Mineral Reserves (CIM) adopted by National Instrument 43–101 Standards of Disclosure for Mineral Projects (NI 43-101).

Kara Beldyr Project Gord Zone 2011 Year End Resource Estimate

Above a 1.0 g/t cutoff

"We are pleased with the presented results and look forward to continued cooperation with Centerra Gold Inc," said Preston Haskell, CEO of Central Asia Gold AB.

A complete listing of the drill results and supporting maps for the Kara Beldyr property have been filed on the System for Electronic Document Analysis and Retrieval ('SEDAR') at www.sedar.com. Additionally, they are available at the Centerra Gold's web site at: www.centerragold.com.

Short name: CAG

ISIN-code: SE0001337213

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. In 2010, totally 730 kg of gold was produced. As of the beginning of February 2012, the company’s assets were estimated to encompass some 1,000,000 oz of C1/ C2 Russian gold reserves (around 32 tons).

Since July 19, 2010, Central Asia Gold´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.

         Preston Haskell, CEO in Central Asia Gold AB, tel: +46 76 890 5549
         E-mail: preston.haskell@centralasiagold.se