LONDON: 9 November 2005 - Oxus Gold plc ("Oxus") (OXS.L) is pleased to report that production at Amantaytau Goldfields ("AGF") in Uzbekistan has enabled AGF to eliminate its hedge commitment some three months ahead of schedule. As a result, Oxus is now an unhedged gold producer.

AGF was originally required to hedge 263,096 ounces as a condition precedent to drawdown on the $35 million project finance facility. This facility was repaid to the lending banks in August this year.

Since starting gold production in 2004 AGF has not been able to benefit from the rise in the world gold price as the majority of its production has been dedicated to reducing the hedge position. This was particularly noticeable during the 2004/5 year when the average price received of $338 per ounce was significantly below the average market price for the year of $419 per ounce.

"It is a notable achievement for AGF in being able to repay all of its debts within such a short period, and still report a profit, while operating within the unfavourable price environment of the gold hedge position," said Bill Trew, chief executive of Oxus.

"Now that the AGF hedge has been eliminated Oxus can look forward to 2006 when as an un-hedged producer we will receive the average market price. If gold prices stay where they are, or rise further, this should have a significant impact on our profitability."

Oxus is the joint owner (50/50) with the government of Uzbekistan of AGF which is developing several mining operations in the Tien Shan gold belt near Zarafshan. The Amantaytau Oxides project produced a total of 287,532 ounces of gold by 31 October 2005 and is now producing at the planned rate of 151,000 ounces a year. Cash costs in 2004/5 were $177 per ounce and total costs were $225 per ounce. AGF contributed $6.44 million (2004: $3.74m) towards the consolidated group revenue of $10.11 million for the year ending 30 June 2005, being the Group's 50% attributable share of profits for the 12-month period.

Oxus is also developing the Jerooy gold mine in Kyrgyzstan which is expected to commence production in the second quarter of 2006 at an annual rate of 180,000 ounces. Oxus owns two-thirds of Jerooy and has no plans to hedge its gold production.

Contacts:

Johnny Kipps, Finance Director
+44 (0)20 7907 2000

Richard Wilkins, Director and Secretary
+44 (0)20 7907 2000

Keith Irons, Bankside Consultants
+44 (0)20 7367 8873 / 07885 356 639