LONDON: 5 August 2004 - Oxus Gold plc (“Oxus”) (OXS.L) the UK-based gold mining group, reports today that its 50%-owned operating mine in Uzbekistan, Amantaytau Goldfields (“AGF”), achieved record gold production of 15,978 ounces (497 kgs) in the month of July. This brings total production for the first six months of operations, starting February 2004, to 75,667 ozs (2,353.5 kgs).

AGF in its second quarter production report had produced a total of 59,689 ozs of gold at an average cash cost of US$123 per oz in the first five months of operations and achieved an operating profit of US$7.5 million to 30 June 2004. Oxus will account for 50% of these results in its own consolidated group results for the year ended 30 June 2004.

AGF has been steadily increasing its monthly gold output since beginning production in February and is targeted to achieve 17,000 ounce per month in the fourth quarter of this year.

Bill Trew, Chief Executive Officer of Oxus Gold plc, commented “This latest production figure from AGF underlines the achievement in constructing the mine and bringing it to full designed production capacity in less than a year. Oxus’ aggressive development schedule is on track and given the success of the first Amantaytau mine project, we look forward with confidence to meeting our production and development targets in 2005 and 2006.”

Over the six month period gold production has been steadily increasing and cash costs per ounce decreasing. These factors are being driven by increasing plant throughput and head grade, and although plant recoveries fell as a result of the increased throughput, steps have been taken to improve recoveries by increasing leach residence time and finer grinding. Plant leach extraction time is being increased by 50% with the addition of two leach tanks to the existing four tanks. These will be commissioned in September 2004 and will have the effect of increasing both throughput and recoveries.

A further increase in production will come from the Phase 1 oxide expansion programme, when ore from satellite oxide deposits will start to be processed at the AGF plant in early 2005 and increase production by a further 50,000 ounces per year.

New gold production is also scheduled for the first quarter of 2005 from the Vysokovoltnoye heap leach project at an annual rate of 52,000 gold equivalent ounces, and the Phase 2 underground sulphide project feasibility study is also progressing well. Gold production remains targeted from this project for early 2006 at an annual rate of 200,000 ounces.

For further details of the 6 monthly figures, please see our last announcement dated 28 July 2004.

Retirement of director

Oxus also reports today that John Donald, Chief Operating Officer of Oxus Gold plc, has advised the Company of his intention to retire from the Board of Oxus on 30th September 2004.

Mr Bill Trew, Oxus' Chief Executive paid tribute to John Donald: "John Donald has done a magnificent job in the development of the Amantaytau mine. We wish him well in his retirement."

END

Contacts:

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

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

Bankside Consultants Ltd.
Keith Irons
Tel: + 44 (0)20 7444 4155/07885 356 639