LONDON: 3 February 2006 – Oxus Gold plc (“Oxus” or “the Company”) (OXS.L) has read various articles that have appeared in today’s press following the recent visit of the Kyrgyz Foreign Minister to London. As stated in yesterday’s news release, Oxus is concerned that certain information provided to the press by the Foreign Minister was incomplete and, as such, potentially misleading.

The Company notes that it is alleged to have engaged in “irresponsible and unlawful behaviour”. The Company points out that it and its advisers have kept the Kyrgyz Government fully informed of progress, expenditure and employment levels at the Jerooy project since the change in Government in March 2005. The Company has also met with President Bakiev on two occasions and, as stated yesterday, the Company is encouraged by the President’s recurring comments that construction should continue on site. The Company now employs over 750 local people and has contributed funds to improve local hospitals, schools and parks. The Talas Social Fund created by Talas Gold Mining Company is expected to contribute over $20 million to the local community over the life of the project, based on current gold prices. The Oxus Group takes great pride in upholding the highest levels of corporate responsibility, particularly with regard to its personnel and social policies.

Construction at the project site has been carried out legally in accordance with a construction licence issued by the Kyrgyz State Committee for Architecture and Construction issued on 24 May 2004, which remains valid. Construction of the processing plant commenced in early 2005 after the appropriate project designs and other documentation had been through an extensive approval process by the relevant State bodies, and ongoing construction continues to be regularly monitored in accordance with State procedures. At no time has Oxus or Talas Gold Mining Company been advised by any State body to cease construction.

The Company notes that the international law firm, Clifford Chance, has concluded that “the Kyrgyz Government’s failure to reinstate the Jerooy mining licence would constitute an unlawful expropriation in violation of the Law on Investments in the Kyrgyz Republic of 7 February 2003, the UK-Kyrgyz Republic Bilateral Investment Treaty of 24 April 1996, and international law and norms.” A Kyrgyz Parliamentary Committee reached the same conclusion on 28 December 2005. On the basis of the negotiations that have already taken place between the Kyrgyz Government and Oxus the international law firm, Denton Wilde Sapte, has also concluded that Kyrgyz law now prohibits any tender and requires the license to be reinstated.

The Company remains committed to developing the Jerooy project in the fastest possible time and has indicated to the Kyrgyz Government that it is willing to improve the returns to the Kyrgyz people from the joint venture, if appropriate. The Company is also encouraged that at a hearing of the Kyrgyz Parliamentary Committee on the Development of the Economy, Enterprises and Natural Resources, held yesterday (2 February 2006), it was concluded that the Kyrgyz Government should resolve the license issue within 30 days within the norms of international law and on appropriate terms for the Kyrgyz Republic.

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Contacts:

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

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