LONDON: 20 September 2005 - Oxus Gold plc ("Oxus" or "the Company") (OXS.L) reports that the feasibility study by Wardell Armstrong of the Amantaytau Phase 2 Sulphide project of Amantaytau Goldfields (AGF) in Uzbekistan is complete, following an external review of the mining plan. Initial construction work on the sulphide mining project has commenced, including underground refurbishment and development access.

During the first 4 years the project is expected to produce in excess of 180,000 ounces of gold annually, commencing Q1 2007, at a direct operating cost of $167 per ounce, and an average of 151,000 ounces of gold annually over the estimated 13 year life of mine, at a direct operating cost of $194 per ounce. 50% of this is attributable to Oxus. Pre-production CAPEX is estimated at $88 million. At a gold price of $450 per ounce and using a 10% discount rate, the feasibility study gives a project NPV of $188.8 million (ungeared), and an IRR of 117.2%.

The project is designed to mine the deeper sulphide extensions to the oxide ore-bodies currently being mined by open-pit methods by AGF at Centralny and to mine the underground Severny ores. Combined they contain mineable reserves of 9.72 million tonnes at an average grade of 7.75 grammes/tonne (g/t) containing 2.42 million ounces of gold (at a cut-off of 3.5 g/t Au) within a total resource of 17.73 million tonnes at an average grade of 6.84 g/t, and containing 3.90 million ounces at zero cut-off grade.

Underground mining will utilize modern trackless methods and truck haulage both via shaft access and twin ramps from surface to exploit the sulphide deposits. The existing production shaft has been refurbished to gain access to former workings and refurbishment of the primary underground level is underway to access the ore. Mine development and construction of the 750,000 tonne per annum sulphide bio-oxidation plant is expected to begin before the end of 2005.

The reserves are held within two mineralised zones known as Centralny and Severny. At Centralny there are six defined ore-bodies, with ore-body 8 showing consistently high gold grades, up to several hundreds of g/t in places, over a strike length of 420 metres. At Severny there are eight mineralised zones with the largest and longest being traced over a strike length from 400 metres to 700 metres.

The underground ore-bodies are open at depth and Oxus believes that there is large potential to increase reserves. An earlier drilling programme by the former Soviet operators intersected mineralisation 500 metres below the lower limit of the current resources (about 870 metres below surface) comprising an interval of 8 metres thick at 51.6 g/t gold with grades of up to 72 g/t. A major underground and surface drilling programme will start imminently with the recent arrival of two new core drill rigs to site, to target deeper known extensions of the deposits with the objective of substantially increasing resources and reserves.

Bill Trew, CEO of Oxus, said "Oxus has always considered the underground project to be a world class project and with over 2 million ounces in mineable reserves and cash costs of below $200 per ounce life of mine, this has now been confirmed by Wardell Armstrong.

"As with AGF oxides we will look to progress the construction in the fastest possible manner to bring this to early account for the benefit of all our shareholders".

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Contacts:

Bill Trew, CEO Oxus Gold
+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