LONDON: 3 March 2005 - Oxus Gold plc ("Oxus" or "the Company") is pleased to Report that more than 99.9% of the convertible loan notes, ("the Loan Notes") issued as part of the placing of 17,000 units completed on 30 November 2004 ("the Placing"), have now been converted to equity.

As a result, Oxus has issued 33,970,000 new ordinary shares to holders of the Loan Notes. All of these shares were admitted to trading on AIM as part of the block admission to AIM of 34,000,000 ordinary shares, which occurred on 17
December 2004. Each unit comprised 1,600 new ordinary shares in the Company
(resulting in 27,200,000 new ordinary shares), plus £1,000 of Loan Notes. Each Loan Note had a conversion deadline of 28 February 2005

Only one holder of the Loan Notes declined to convert, representing a total of £15,000, and consequently 30,000 ordinary shares were not issued. Following conversion of the Loan Notes the total number of new ordinary shares issued as a result of the Placing is 61,170,000 shares at 50p each, which has successfully raised £30,585,000 (approximately US$58 million) gross. The total number of shares in issue has increased to 286,928,836. The funds are primarily intended to be used to complete the construction of the Jerooy gold mine in the Kyrgyz Republic.

This is the final conversion with respect to the above-mentioned block admission.

Contacts:

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

Bankside Consultants Ltd.
Tel: + 44 (0)207 444 4155 /07885 356 639
Keith Irons