CGA ANNOUNCES ITS SIXTH CONSECUTIVE QUARTERLY RECORD PRODUCTION AND
THROUGHPUT

/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS WIRE SERVICES/

48,373 OUNCES FOR THE SEPTEMBER QUARTER

SEPTEMBER 2010 QUARTERLY REPORT

ANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE AND TORONTO STOCK EXCHANGE

22 OCTOBER 2010

PERTH, Western Australia , Oct. 22 /CNW/ -

HIGHLIGHTS

• 6^th successive quarter of increases in throughput and production
• Production for the quarter increased by a further 11% to a new record of 48,373 ounces
• Cash operating costs of $586 per ounce (June Q $596)
• Plant throughput improved by a further 7.5% to a new record throughput level of 1,447,557 tonnes
• Plant throughput in August achieved an annualised rate equivalent to 6.34 Mtpa, without installation of new equipment.

• Plant availability was a sound 91.0%
• Recoveries also continue to improve with a new quarterly high of 85.9%
• Exploration drilling continues to gather pace with significant exploration results including:
  Hole ODRC001,    9m @ 1.35g/t Au from 60m
  Hole ODRC003,  10m @ 1.70g/t Au from 22m
  Hole ODRC004,  12m @ 3.00g/t Au from 51m
  Hole ODRC004,  10m @ 4.82g/t Au from 81m
  Hole ODRC006,  16m @ 1.20g/t Au from 48m
  Hole ODRC007,  25m @ 2.13g/t Au from 29 m
• Strong balance sheet with cash and liquid assets on hand at 30 September of US$125.6M, (June Q $US109.2M)
• Successful completion and listing of the Ratel Gold Limited (RTL) spin-off with CGA receiving a 19.4% interest
• CGA and RTL announce a strategic alliance and agreement to acquire the right to earn a 60% interest in the world class King - king copper gold porphyry deposit in the Philippines.

MASBATE PROJECT UPDATE

	Ore Mined (t)	Average Grade Mined (g/t Au)	Ore Milled (t)	Head Grade (g/t Au)	Recovery (%)	Plant Availability (%)	Total Production (oz Au)	Cash Operating Costs (US$/oz)
September Quarter	1,195,513	1.27	1,447,557	1.21	85.9	91.0	48,373	587
June Quarter	1,227,639	1.24	1,347,023	1.19	84.2	87.4	43,390	596

The Process Plant continued its record of consistent improvement with throughput, throughput rate, grade, recovery and availability all improving from the June quarter. Despite no implementation of new equipment for the planned expansion to 6.5Mtpa and a slight increase in ore feed hardness, the quarter had record throughput and production. The last two months of the quarter averaged an annualised throughput of 6.26 Mtpa (August - 6.34Mtpa).

Overall cash operating costs per tonne milled for the quarter were US$18.53 (US$18.83 June quarter) prior to any ore stockpile or waste deferral adjustments.

Cash operating costs per ounce for the quarter were US$586.71 (US$596.23 June quarter) and can be improved as higher grades can be achieved from moving out of the zones associated with cutbacks and peripheries of ore zones.

The average realised gold price during the quarter was US$1,119/oz with total proceeds from the sale of gold and silver of US$50.4M.

Safety

There were 0 Lost Time Injuries during the quarter resulting in a Lost Time Injury frequency rate of 0.97 (rolling 12 month average). The project had recorded 133 LTI free days as at the end of the quarter.

Staff training continued to focus on the recognition and assessment of risks and the development of operator competency based training. A base line Safety, Health and Environment Management System audit was conducted in September.

Mining and Geology

Mine production of 2,150,328 BCM (2,204,147 BCM June quarter) remained steady through the quarter producing 1,195,513 tonnes of high grade ore (1,227,639 tonnes June quarter) and 475,789 tonnes of low grade ore (864,452 tonnes June quarter). The main production areas continued to be HMB East, Binstar and Colorado pits with minor contributions from Main Vein cut back, good bye cut from Montana and the development of a new pit at HMB West.

Drilling of geotechnical and resource holes in the Main Vein and HMB East areas continued with one dedicated rig.

Milling

Mill throughput of 1,447,577 tonnes (1,347,023 tonnes June quarter) was a new quarterly record and contributed to an 11% increase in quarterly gold production to a record 48,373 ounces (43,390 ounces June quarter). Gold recovery continues to improve and is now at 85.9% (84.25 June quarter) with the addition of lead nitrate. Availability increased to 91% from the June quarter of 87.4%.

Availability and throughput were affected by a SAG Mill reline and trunnion bearing issues on Ball Mill #1 in July, which were all resolved in the same month. The last two months of the quarter saw availabilities average 94.3% and throughput at an average annualised rate of 6.24 Mtpa.

Community Relations

The Social Development Management Plan and Corporate Responsibility Plan continued to follow projects agreed with the local community and local government. There was a focus on support and improvement of services in the areas of health, education, infrastructure and livelihood capacity building.

Exploration

Exploration activities continued this quarter with the completion of 28 RC holes at the Capsay/Old Lady prospect and geological mapping and surface sampling over the northern end of EP-010-2010-V which is immediately adjacent to the mining areas.

Intensive surface mapping and rock chip sampling was conducted on the northern end of EP-010-2010-V during the quarter. Results from this program are very encouraging with 6 prospects identified for follow up work which will include soil sampling, trenching and drilling. Of particular interest is the Pinanaan - Paraiso area, where numerous NE trending pyritic quartz veins and a 20m wide stockwork system were identified. This area is co-incident with a strong potassium radiometric anomaly, currently interpreted as mapping an alteration halo.

Key intercepts from drilling during the quarter at the Old Lady Prospect include:

Hole ODRC001,    9m @ 1.35g/t Au from 60m
Hole ODRC003,  10m @ 1.70g/t Au from 22m
Hole ODRC004,  12m @ 3.00g/t Au from 51m
Hole ODRC004,  10m @ 4.82g/t Au from 81m
Hole ODRC006,  16m @ 1.20g/t Au from 48m
Hole ODRC007,  25m @ 2.13g/t Au from 29m.

This prospect is near the current mining area and outside the current indicated resource envelope and further enhances the probability of delineating additional reserves close to current pits.

CORPORATE

As at 30 September 2010, cash and liquid assets were US$125.6M (June quarter - US$109.2M) - including the cash reserves of FRC, and after having paid the interest and principal repayment on the BNP arranged project finance facility for the Masbate Gold Project of US$4.3M. The outstanding project finance facility has now reduced to US$59.8M at 30 September 2010.

During the September quarter, 1,789,500 share options were exercised for gross proceeds of A$2,060,050.

At 30 September 2010, the Company had 10,112,500 options on issue and the total issued capital was 336,084,476 fully paid ordinary shares.

During the quarter, CGA completed the spin-off of its interests in the Segilola Gold Project and Mkushi Copper Project in Africa, listing Ratel Gold Limited ("RTL") on the TSX. CGA has retained a 19.4% interest in RTL and subsequent to quarter end, RTL has announced the proposed acquisition of an interest in the world class 20.7m equivalent gold ounce King-king Project in the Philippines - we refer readers to the announcement dated 18 October 2010.

ABOUT CGA MINING LIMITED

CGA is listed on both the Toronto Stock Exchange and the Australian Securities Exchange. The Masbate Gold Project is the largest gold project in the Philippines and was successfully developed with first gold poured on 12 May 2009. The project has a total indicated resource base of 4.55M ounces, total inferred resource base of 3.22M ounces and a probable reserve of 3.03M ounces of gold. At steady state operations the project is forecast to produce over 200,000 ounces per annum.

The 4Mtpa designed plant was constructed by Leighton Contractors Asia Limited ("Leighton") without one lost time injury. The mining contract for the Masbate Gold Project has been awarded to Leighton, the largest mining contractor in the world. The plant is currently running at an annualised rate of 6Mtpa. CGA is completing a US$15M investment program designed to upsize throughput to 6.5Mtpa at Masbate.

CGA has a disciplined acquisition program focused on acquiring new gold projects with a substantial initial resource with the capacity to grow materially and where the development and operational experience of CGA can be applied to enhance shareholder value.

NATIONAL INSTRUMENT 43-101 AND JORC COMPLIANCE

Mr Geoff.G.Jones, F.Aus.I.M.M.CP Mng, CGA's Consulting Engineer, is acting as the Qualified Person in compliance with NI 43-101 and JORC reporting requirements with respect to this announcement. He has prepared and or supervised the preparation of the scientific or technical information in this announcement and confirms compliance with NI43-101 and JORC requirements.

Further information relating to the Masbate Project is included in the technical report entitled Technical Report on the Mineral Resources of the Masbate Deposit, Masbate Province, Republic of the Philippines for CGA Mining Limited prepared by Mining Associates Pty Ltd and available on SEDAR at www.sedar.com, lodged 8 July 2008.

Andrew James Vigar of Mining Associates Pty Ltd, a qualified person, has verified the resource statement for the Masbate Project as disclosed in this announcement, including sampling, analytical and test data underlying the estimate. Verification of the data included numerous site visits, database validation of historical drill results and review of sampling and assaying protocols. The qualified person was satisfied with the verification process.

A NI 43-101 compliant report has been lodged on www.sedar.com verifying and supporting the new reserve statement made for the Masbate Project.  Mr Daniel Tuffin, previously of Lower Quartile Solution Pty Ltd, a qualified person, has verified the reserve statement for the Masbate Project as disclosed in this announcement, including sampling, analytical and test data underlying the estimate. Verification of the data included database validation of historical drill results and review of sampling and assaying protocols.  The qualified person was satisfied with the verification process.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

This announcement includes certain "forward-looking statements" within the meaning of Canadian securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding milestones related to the Masbate Gold Project, production estimates and CGA's future operating or financial performance, are forward-looking statements. Forward-looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from CGA's expectations include uncertainties related to fluctuations in gold and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies in the development of CGA's mineral projects; the need to obtain additional financing to develop CGA's mineral projects; the possibility of delay in development programs or in construction projects and uncertainty of meeting anticipated program milestones for CGA's mineral projects; and other risks and uncertainties disclosed under the heading "Risk Factors" in CGA's Annual Information Form for the year ended 30 June 2010 filed with the Canadian securities regulatory authorities on the SEDAR website at www.sedar.com.

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