Vancouver, British Columbia – (January 6, 2021) – Central African Gold Inc. (TSXV: CAGR; FSE: BC2; OTCQB: NDENF) (the “Company” or “Central African”) announces the closing of the previously announced non-brokered private placement (the “Financing”) of 500,000 units (each a “Unit”) at a price of CDN $0.15 per Unit for aggregate proceeds of CDN $75,000 as accepted by the TSX Venture Exchange. Each Unit consists of one common share of the Company (a “Share”) and one common share purchase warrant (a “Warrant”). Each Warrant is exercisable into one Share at an exercise price of $0.25 per Share for a period of two years from the date of issuance.

The proceeds from the Financing will be used to fund due diligence on projects of merit presented to the Company 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 May 7, 2020.

Related Party Participation in the Private Placement

Insiders subscribed for the entire Financing. The purchase of such Units is considered to be a related-party transaction under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) but is exempted from the requirements to obtain a formal valuation and to obtain minority approval, as the purchase of securities does not exceed 25% of the Company’s market capitalization. The Company 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 Company did not file a material change report more than 21 days before the expected closing of the Financing because the Company wished to close on an expedited basis for business reasons.

About Central African Gold Inc.

Central African is a natural resource company with a primary focus on the acquisition, exploration, development and operation of mineral projects in the Democratic Republic of Congo (“DRC”). Central African currently holds rights to mineral projects strategically located in the southern DRC CopperBelt. Central African has the intention to acquire interests in additional concessions or relinquish concessions in the normal course of business. Central African has an experienced management team located in the southern CopperBelt of the DRC.

For further information, please contact: Stephen Barley, Chairman & CEO Phone: (604-834-2968)

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