Mr. Stephen Barley reports

CENTRAL AFRICAN GOLD CLOSES NON-BROKERED PRIVATE PLACEMENT

Central African Gold Inc. has closed the previously announced, non-brokered private placement of 12.5 million units at a price of 15 cents per unit for aggregate proceeds of $1,875,000. The financing was oversubscribed. Each unit consists of one common share of the corporation and one common share purchase warrant. Two warrants are exercisable into one share at an exercise price of 25 cents for a period of two years from the date of issuance.

In connection with the private placement, the corporation has paid finders' fees totalling $2,800, representing 7 per cent of the gross proceeds raised by finders, and issued 18,667 common share purchase warrants, representing 7 per cent of the units sold through finders.

The proceeds from the financing will be used to finance due diligence on projects of merit presented to the corporation and for general working capital purposes.

The securities issued in connection with the financing are subject to a hold period under applicable securities laws, which will expire on Jan. 18, 2022.

Related party participation in the private placement

Directors, management and insiders subscribed for an aggregate of 1.5 million units, representing aggregate gross proceeds of $225,000. The purchase of such units is considered a related party transaction under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions, but is exempt from the requirements to obtain a formal valuation and minority shareholder approval, as the purchase of securities does not exceed 25 per cent of the corporation's market capitalization. The corporation is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(1)(a) of MI 61-101.

The corporation did not file a material change report more than 21 days before the expected closing of the financing because the details of the participation therein by related parties of the corporation were not settled until shortly prior to closing the financing, and the corporation wished to close on an expedited basis for business reasons.

About Central African Gold Inc.

Central African Gold is a natural resource company with a focus on the acquisition, exploration, development and operation of base metal mineral projects in the Democratic Republic of the Congo (DRC). The implementation of a carbon capture and carbon credit program will complement base metal operations, meet important ESG (environmental, social and corporate governance) requirements and present an opportunity for early revenue. Central African Gold has the intention to acquire interests in additional concessions or relinquish concessions in the normal course of business. Central African Gold has an experienced management team located in the DRC.

We seek Safe Harbor.