Oxus Gold successfully appeals against Uzbek tax claims

AGF joint venture liable for approx $1 million claims

LONDON: 20 February 2007- Oxus Gold plc ("Oxus" or the "Company") is pleased to

report that the Navoi Regional Economic Court in Uzbekistan has confirmed that its

Amantaytau Goldfields ("AGF") joint venture is not liable to pay various taxes,

customs duties, fines and penalties imposed on it by the regional tax and customs

authorities for alleged breaches of tax laws.

During August 2006 the regional tax and customs authorities brought a claim against

AGF for back taxes, customs duties, fines and penalties amounting in total to

approximately $225 million for alleged breaches of the Uzbek tax laws.

These claims were upheld by a Navoi regional court at the end of October 2006 but,

following an appeal by AGF, on 28 December 2006 the Appeal Court allowed AGF's

appeal and rejected all the principal claims of the regional tax authority.

As a result, revenue claims, fines and penalties totalling approximately $208 million

were no longer payable and various restrictions imposed on AGF's operations as a

result of the earlier ruling, were lifted. The regional tax authority did not appeal this

decision within the permitted timeframe and, as a result, the Appeal Court's decision

in AGF's favour is now effective.

Further, on 7 February 2007 the Navoi Regional Economic Court (the "Court")

rejected the claims of the regional customs authority on the payment by AGF of

customs duties amounting to an additional $2 million. On 16 February the Court also

rejected the claims of the regional tax authority on the payment by AGF of taxes

amounting to approximately $14 million. Based on the foregoing, AGF will not be

required to pay taxes, customs duties, fines and penalties amounting in total to

nearly $224 million.

However, the Court did decide that AGF was responsible for the payment of certain

revenue taxes due, amounting in total to approximately $650,000, and could also be
liable for the payment of some claims for non-residents’ income tax amounting
approximately to a further $450,000. Oxus has already provided for a sum within its
annual accounts to June 30 2006 to cover its 50% share of a possible outstanding
liability of $1.1 million.

Bill Trew, CEO of Oxus, said today: "We are pleased to have confirmation from the
Navoi Regional Economic Court that AGF is not liable to pay the $224 million in taxes
and penalties. It has always been Oxus's policy to work within the framework of the
legal and taxation regimes in all the countries where we have interests and we
strongly believed that AGF had followed that practice. It is a relief to us to have this
behind us so that we can focus our efforts on the efficient operation of the AGF oxide
plant and the further development of the sulphide operations where there is
significant upside potential."

END

Further enquiries:

Oxus Gold plc
Richard Wilkins, Company Secretary
 
Tel: + 44 (0)20 7907 2000

Bankside

Keith Irons Tel: + 44 (0)20 7367 8873

Oliver Winters Tel: + 44 (0)20 7367 8874