Central Asia secures mining licence approval for Kazakhstan gold prospect

HIGHLIGHTS

o 15 year mining license secured for Uenke Bulak gold project

o Feasibility study underway at Uenke Bulak with gold production targeted for 2009

o Samples shipped to Australia to commence testwork

o Infill drilling commenced to upgrade inferred resource tonnage and grade

Central Asia Resources Limited's ("Central Asia" or "the company") subsidiary Buguty-Palm LLP has received approval from the Kazakhstan government for the commercial discovery application on its Uenke Bulak gold project at Boguty in Kazakhstan. A commercial discovery application is made to convert an exploration license into a mining license in Kazakhstan.

Central Asia's Director Angela Dent said "The Company now has a fifteen year mining license for Uenke Bulak on which it is currently undertaking a feasibility study. Subject to that study we could be producing gold from this prospect in 2009."

"The approval of commercial discovery on Uenke Bulak removes one of the risk factors on this project and is another step towards development."

A diamond drill rig has commenced in-fill drilling at Uenke Bulak with the aim of upgrading the inferred resource tonnage and grade and to provide additional sample material for further metallurgical testing if required.

An initial sample has been shipped from Kazakhstan to Gekko Systems Pty Ltd, Ballarat to commence testwork which will determine the amenability of the ore to vertical shaft impactor comminution, gravity concentration, flotation, intensive cyanidation and electrowinning.

"Central Asia remains focused on aggressively exploring all its highly prospective Kazakhstan gold projects to confirm JORC compliant gold resources in 2008."

For further information contact:

Angela Dent David Tasker/John Williams

Central Asia Resources Limited Professional Public Relations

Phone: 61 8 9486 4788 Tel: 61 8 9388 0944

Background - Central Asia Resources Limited

Central Asia holds a 60% interest in Golden Eagle Investment Resources Limited ("Golden Eagle"). Golden Eagle has a 95% interest in the Alytn-Tas Joint Venture and a 60% interest in the Buguty-Palm Joint Venture.

Central Asia manages Golden Eagle and all subscription moneys paid to Golden Eagle will fund exploration and administration for the Joint Ventures.

Through the joint ventures, Central Asia has acquired an indirect interest in the K2, Akbakai South, Balkhash and Boguty Corridor gold and base metals projects in the Republic of Kazakhstan.

All projects were the subject of exploration by Soviet workers from the 1960s to the mid-1990s. Since the mid 1990s Moonstone and Palmerston, the previous owners whose interests have been acquired by Golden Eagle, had completed several diamond drilling programs and regional geochemical exploration and mapping programs in the region.

The project areas currently total approximately 3200km² and have been estimated by the previous owners to contain various significant historical Russian category and unclassified resource estimates (these resource estimates are considered conceptual only and cannot be formally classified in accordance with the current JORC Code guidelines).

The company's project areas are close to Almaty, the largest city in Kazakhstan and have well established road, rail and telecommunications infrastructure.

In July 2006 Central Asia commenced a two-year exploration program to validate historical geological data and generate resources. The Company is focusing on resource definition and prospect evaluation with the objective of achieving resource estimates which can be classified in accordance the current JORC Code guidelines and declaring commercial discoveries under Kazakhstan mining laws as a prerequisite to production.

Since commencing the program, the Company has completed in excess of 13,000m of RC and diamond drilling.