LONDON: 18 August 2004 - Oxus Gold plc ("Oxus" or "the Company") (OXS.L) has noted the recent announcement by the State Agency for Geology and Mineral Resources of the Kyrgyz Republic of a purported 'annulment' of the licence held by Oxus' subsidiary, Talas Gold Mining Company, for the Jerooy Gold Project in Kyrgyzstan. This purported 'annulment' is regarded by the Company and its lawyers as utterly without foundation in law or fact, and the Company is using all its efforts to ensure that the Kyrgyz Government corrects this error. Accordingly, construction of the Jerooy mine, which began in September 2003 will continue unabated, with scheduled completion in 2005. The Company will notify its shareholders if it concludes that this incident may lead to a delay in the development of the mine.

Bill Trew, CEO of Oxus, said: "It is disappointing that once again we are having to resolve issues relating to the Jerooy licence. We are continuing to dispatch, as scheduled, equipment and steel for the construction of the mine and we are determined not to let these administrative matters delay the progress of this project".

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Contacts: 

Oxus Gold plc:
Richard Shead , Director
Tel: + 44 (0)20 7907 2000

Williams de Broë Plc
Michael Shaw
Tel: + 44 (0)20 7588 7511

Bankside Consultants
Simon Rothschild
Tel: + 44 (0)207 444 4153