ASX / MEDIA ANNOUNCEMENT

28 August 2015

FIRST FUNDS RECEIVED FROM SALE OF DALABAI PROJECT

Sale of Dalabai Project

Central Asia Resources Limited (the Company) (ASX: CVR) is pleased to announce that it has received the first funds from the sale of the Dalabai project. A binding Heads of Agreement for that sale Transaction was announced to the ASX on 17th July 2015. The purchaser of the Project is Uroven OMP LLP, a private Kazakh entity.

Legal documentation for the sale of Kazakh subsidiary companies has progressed, and includes a Service Agreement for the Purchaser to operate Dalabai until final transfer of subsidiary company ownership is made. It is noted that the free floating of the Kazakh currency and immediate devaluation on 20th August 2015 had no impact on the terms and conditions of this Sale.

A payment of US$95,000 has been made this week by the Purchaser, from which some legal and corporate advisory fees have been made in Kazakhstan. Net funds of A$77,000 were received in Australia on 27th August.

Total funds anticipated from the Sale Transaction were detailed on 17th July as follows:

As part of the purchase of Dalabai, the Buyer will assume all Dalabai related debts, including:

 Dalabai debt, including bank debt as at 15th July 2015, (US$2.6m/A$3.46m)

 Gold Line repayments (1480 oz gold, valued at approximately AUD $2.3m using current gold price of AUD $1,550/oz). The Gold Loan was established in 2013 and 2014 between CVR and a private entity, West Asia Minerals Ltd.

In addition to assuming the Dalabai debts, the Buyer will also make the following cash payments to

CVR:

 US$300,000 (A$400,000) upon execution of a formal Sale and Purchase Agreement;

 US$200,000 (A$266,000) upon commencement of gold production if production commences by 15 September 2015, otherwise on 15 December 2015; and

 A 1% Gross Royalty from Dalabai production, capped at US$360,000 (A$480,000)

commencing from 1 January 2016 and paid during 2016 and 2017.

Further details on requirements for CVR to seek shareholder and regulatory approvals of relevant matters will follow when available.

C/o- 311-313 Hay St, Subiaco, Western Australia 6008

PO Box 8282, Subiaco, Western Australia 6008

P: +61 8 6489 0600 F: +61 8 9388 3701

ABN: 13 113 816 158

ASX / Media Announcement

Dalabai Sale Update

Planned Resumption of Trading on the ASX

The Company will use some of the funds received from the sale to complete its 2014 Kazakh and Australian audits and lodge its 2014 Annual Report and accounts. Subject to the satisfaction of ASX, it is anticipated that the trading suspension on shares in the Company will then be lifted.

END

For further information contact:

Peter Thompson
Managing Director
Central Asia Resources Limited
Ph: (+61) 417 979 169 (+7) 771 507 2936 [email protected]
Jason Campbell
Company Secretary
Central Asia Resources Limited
Ph: +61 8 6489 0600
The Almaty, Kazakhstan office of Rosenblatt & Company, an international emerging markets law firm, acted as legal advisors to CVR.
ScholzvonGleich in Kazakhstan acted as exclusive financial advisor to CVR.

ABOUT CENTRAL ASIA RESOURCES

Central Asia Resources Limited (ASX: CVR) is focused on exploration, development and production of gold in Kazakhstan. The Company holds two license areas in Kazakhstan. These include four deposits with JORC Resources, all of which have exploration upside, and areas of significant prospectivity based on extensive exploration during Soviet times. The license areas are within recognised gold belts, and close to operating mines and infrastructure. Trial mining commenced at the first project, Dalabai in February 2012 using shallow open pit mining and heap leach technology, with a further 1,040oz produced in late 2013 from leaching of stockpiled material.

Altyn Tas Project

The Altyntas project is located 500km north-west of Almaty in the Tien Shen gold province, and 40km from the Akbakai
gold mine. The Altyn Tas project includes gold deposits at Altyn Tas, Kepken and Kengir. Resources for the Altyn Tas deposit are quoted at 13.9 million tonnes at 1.34g/t gold for 598,000oz, of which 25% is Indicated and 75% is inferred. An updated 2014 resource estimate is in preparation and is expected to report a smaller overall resource but with a greater proportion in the Indicated category.

Dalabai

The Dalabai Project is located in the Chu Ili gold best in Southern Kazakhstan, approximately 2.5hrs drive from the
country's largest city, Almaty. It is well serviced logistically with proximal main road and rail infrastructure. The project was
acquired by Central Asia Resources in 2008 with the current plant built in 2011. Trial mining commenced in Dalabai in
February 2012 using shallow open pit mining and simple heap leach extraction through November 2012.

Disclaimer

Certain statements included in this announcement may constitute forward looking information. This information is based
upon a number of estimates and assumptions made by the Company in light of its experience, current conditions and expectations of future developments, as well as other factors that the Company believes are appropriate in the circumstances. While these estimates and assumptions are considered reasonable, they are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, commodity prices, exploration, acquisition, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Forward-looking information is no guarantee of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking information due to the inherent uncertainty therein. Forward-looking information is made as at the date of this announcement and the Company disclaims any intent or obligation to update publicly such forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by law.

2 | P a g e