Oxus announces agreement in principle to transfer Kyrgyz and Romanian interests to KazakhGold

Dividend to be Declared

LONDON: 12 March 2007 - Oxus Gold plc ("Oxus" or the "Company") (OXS.L) is pleased to announce that it has agreed in principle to sell to KazakhGold Group Limited, subject to contract ("KazakhGold") (KZG.L):

- its 100% interest in Norox Mining Company Limited, which company owns 66.67% of Talas Gold Mining Company in Kyrgyzstan; 
 
- its 50% interest in the Romaltyn joint venture in Romania; and
 
- certain exploration assets in Turkey currently owned by Oxus's 86% owned subsidiary, Marakand Minerals Limited (MKD.L), subject to board approval from Marakand
 
 for the issuance of 3,541,666 new ordinary shares in KazakhGold (currently valued at approximately $72 million), plus deferred consideration of up to $80 million, payable in cash in instalments, provided that KazakhGold obtains the requisite licence to enable it to continue with the development of the Jerooy gold project in Kyrgyzstan. The proposed sale is subject to a number of conditions, including completion of satisfactory due diligence, the receipt of satisfactory independent valuations of the assets, the receipt of all necessary regulatory approvals and consents, and completion of final legal documentation. 
 
 

Contacts:

Oxus Gold plc
Richard Wilkins                                                 
Tel: +44 (0)20 7907 2000
Website: www.oxusgold.co.uk

Bankside Consultants Ltd.
Keith Irons/Oliver Winters                                 
Tel: +44 (0)20 7367 8873

Canaccord Adams Limited
Erin Needra                                                       
Tel: +44 (0) 7050 6755 

Distributed on behalf of Oxus Gold plc by

Bankside Consultants, 1 Frederick 's Place, London EC2R 8AE
Telephone 020 7367 8888   
Facsimile 020 7367 8899   
E-mail: mail@bankside.com