Centurion Gold Holdings Reports Financial Results for First Quarter.

JOHANNESBURG, South Africa -- Centurion Gold Holdings, Inc., (OTCBB:CGHI), today reported its financial results for the first quarter of fiscal 2005, ended June 30.

Revenue for the first quarter of fiscal 2005, ended June 30, was $377,286. All the revenue resulted from the successful operation of the Primrose Mine. As the company initiated business May 7, 2003, there was no revenue in the year ago period.

During the current quarter, CGHI had a net loss before foreign currency adjustment of $871,006 versus a net loss of $248 in the same period a year ago. After a foreign currency gain of $30,885 in the current period, the net loss for the period was reduced to $840,121, or $0.02 a share, versus a foreign currency loss of $1 in the year ago period, which produced a net loss of $249.

CEO Arthur Johnson of Centurion Gold Holdings said, "We are currently producing about 25 kilograms per month at the Primrose Mine. At this level of production, Primrose is generating in excess of $100,000 free cash flow a month. This free cash flow is being used to reduce the liabilities we assumed from the prior owners. At this rate of free cash flow, we expect to pay off these liabilities within the next 12 months."

Johnson added that he believed that the increased level of production at Primrose and management loans to cover operational expenses will be sufficient to satisfy the company's cash requirements for at least the next twelve months. Vice President Dale Paul, COO Keith Hart and Arthur Johnson have agreed to take salary cuts until the debt is paid off.

He said, "We believe that the recently opened Stanhope shaft may even make it possible to accelerate our debt repayment. In addition, we have initiated production at the Sallies Mine and expect to begin deriving revenue from it during the upcoming quarter."

The world's largest producer of gold, South Africa's gold reserves represent more than 40% of global reserves. Industry analysts predict that the future of the gold industry in South Africa is dependent on consolidation of mining companies and increased productivity. Market leaders, such as AngloGold Limited (NYSE:AU) and Gold Fields Ltd. (NYSE:GFI), have benefited from strategic mergers and acquisitions of mining companies owning mineral rights leases in South Africa.

About Centurion Gold Holdings, Inc.:

Centurion Gold Holdings, located in Johannesburg, South Africa, started three years ago to identify and acquire promising ore-bearing properties. In the past six months, it has acquired four properties: the Primrose Gold Mine; the Omaruru Gold Mine; the Sallies Mine and a chrome bearing operation. The Company is positioning itself to become a major producer in this market by acquiring mineral bearing properties and mineral rights.

Forward Looking Statements:

Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Litigation Reform Act of 1995. The company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this press release, the Company will appropriately inform the public.