LONDON: 1 March 2005 - Oxus Gold plc ("Oxus" or "the Company") is pleased to announce that it has signed a co-operation agreement with the Navoi Mining and Metallurgical Combinat of Uzbekistan to work together with a view to developing the Kosmanachi silver/gold deposit situated near the Company's Amantaytau gold mine, in central Uzbekistan.

Kosmanachi has been extensively explored over the past two decades and is estimated to contain Soviet classified C1 and C2 Resources of at least 40 million ounces of silver at an average grade of 105 grammes/tonne and 270,000 ounces of gold at an average grade of 0.5 grammes/tonne.

Oxus intends to carry out a detailed review of all the existing data and to undertake a drilling programme to confirm the earlier exploration results in order to complete a pre-feasibility study. Assuming favourable economics, a formal agreement will be completed reflecting the appropriate legal form of co-operation in order that full feasibility can be completed and plant construction may be commenced in the shortest possible time. Test work to date indicates that a heap leach plant would recover in excess of 70% of the silver and gold. The mine is situated within 20 kms of the Company's existing operations and therefore minimal infrastructure will be required.

Resignation of Non-executive Director

The Company also announces that Dan Kappes is retiring as a non-executive director with immediate effect. Bill Trew, CEO of Oxus said "Dan has played a valuable role with the Company over the last two years. However, as President of Kappes Cassiday & Associates, and with the recent increase in activity within the mining industry generally, he feels that he must now concentrate on his main business interests. I would like to thank him for his contribution and wish him well for the future."

Announcements regarding new appointments to the board will be made in due course.

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 Ltd.
+44 (0)20 7444 4155 /07885 356 639