ASX/ MEDIA ANNOUNCEMENT

Eurogold Limited ("Eurogold") is pleased to announce that it has agreed terms for the sale of its gold assets in Romania and Ukraine to Oxus Gold plc ('Oxus'), the UK gold mining group with existing gold production and exploration assets in Central Asia.

Details of the proposed 100% scrip acquisition of the assets by Oxus and an overview of Oxus are set out in the attached announcement made by Oxus.

The total value of the transaction will be £17.3 million equal to £0.07 per Eurogold share. Oxus already owns 43,188,100 shares in Eurogold equal to 17.44% of the fully diluted share capital. These shares will be cancelled as part of this transaction. Thus the net purchase consideration after set off will be £14.3 million with 30.6 million new Oxus shares being issued, based on the average closing price of 46.7p of Oxus shares over 6, 7 and 8 July 2005.

Peter Gunzburg, Executive Chairman of Eurogold, said the transaction was a positive milestone for Eurogold's shareholders.

"This transaction gives Eurogold shareholders the opportunity to retain their exposure to attractive Eastern European and Former Soviet Union gold assets while also benefiting from the financial strength and management depth of a larger gold mining house, in Oxus," said Mr Gunzburg.

Following the sale, Eurogold intends to complete an in specie distribution of these Oxus shares to its shareholders. The exact number of shares to be distributed will be determined subsequent to the receipt of tax advice and the structure of the transaction being finalised.

After completion of the transaction, Eurogold will have 204,491,394 shares on issue and intends to consider and evaluate other investment opportunities.

The finalisation of the transaction is conditional on, amongst other things, the satisfactory completion of full due diligence and valuations of the assets, and on the approval of the shareholders of Eurogold.

Eurogold expects that a notice and explanatory memorandum for the Eurogold shareholders meeting will be despatched towards the end of August. This notice will contain an independent expert's opinion on the transaction.

Contacts:

Peter Gunzburg
Executive Chairman
Eurogold Limited
Tel: +61 8 9481 0572
Mob: +61 (0)412 927 773

John McGlue
Porter Novelli
Tel: +61 8 9386 1233
Mob: +61 (0)417 926 915

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