The Company confirms there has been no adverse change to AGF’s operations in Uzbekistan, which continues to operate normally. The feasibility study for the underground sulphides project is still being evaluated and approved by the relevant Uzbek State authorities and this process is expected to complete within the next three months.

The Company is aware that the Uzbek Government is proposing to cancel certain tax privileges granted to various foreign investments. Under Uzbek law, AGF enjoys a 10 year protection against adverse tax changes, which is not scheduled to expire until 2010, and the Company has been advised by its counsel that the proposed cancellation of privileges will not apply to AGF. The Company is sympathetic to the desire of the Uzbek Government to realise more revenue from the mining sector at a time of high metal prices and has indicated its willingness to discuss appropriate and equitable means of achieving this.

The Company notes the recent developments at the Zarafshan-Newmont joint venture and confirms that these developments are specific to that particular joint venture and are not expected to impact on AGF’s operations.  AGF continues to ship gold into the spot market on a regular basis.

END