LONDON: 28 July 2004 - Oxus Gold plc ("Oxus") (OXS.L) is pleased to report the first half yearly trading results to 30 June 2004 from its 50% owned gold mine at Amantaytau Goldfields ("AGF") in Uzbekistan. Oxus will account for 50% of these results in its own consolidated group results for the year ended 30 June 2004.

Hightlights:

-AGF unaudited operating profit of US$ 7.5m after taxes and debt service of which US$3.75m attributed to Oxus

-59,689oz gold produced in 5 months of operations

-Gold production steadily increasing to 17,000 oz per month

-Cash operating costs averaging US$123 per oz and decreasing

-23% hedging commitment discharged

-Project finance loan repayment on schedule

Chief Executive's Review
Bill Trew, Chief Executive Officer of Oxus Gold plc, commented “Constructing the mine and bringing it to full designed production capacity in less than a year has been a great achievement for AGF. Achieving cash costs of US$114 per oz by the end of June and an unaudited 6 monthly operating profit of US$7.5m bodes well for the future. Oxus' aggressive development schedule is on track and given the success of the first Amantaytau mine project, we look forward to an exciting and profitable future."

Production Results
The following production results have been achieved by AGF for the 6 month period to 30 June 2004.

 

All gold produced has been exported and sold on the London market.

Over the six month period gold production has been steadily increasing and cash costs per ounce decreasing. These factors were driven by increasing plant throughput and head grade, although plant recoveries fell as a result of the increased throughput. Steps are being taken to improve recoveries by increasing leach residence time and finer grinding.

The mining of the open pits is ahead of schedule and an ore stockpile of almost 100,000 tonnes was created by the end of June. The mining is being carried out to a very high standard by Oxus' mining contractors BCM.

The Karakata water supply pumping system from the Company's own wellfield, 41 kilometres from the mine was commissioned in June at a cost of US$2.5m.

This is supplying the water requirements for current operations and will also provide water for the Phase 1 oxide expansion, the Vysokovoltnoye gold/silver heap leach project and the Phase 2 underground sulphide mine.

Safety Report
AGF is very pleased to report that no serious accident has occurred at the mine from the start of construction in mid 2003 to full production at the end of June 2004. Oxus would like to congratulate the AGF safety commission and all staff on this achievement.

Prospects
In the short term, gold production is expected to increase by approximately 33% to average 17,000 oz per month. 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.

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

The Vysokovoltnoye heap leach project feasibility study is well underway. Production is scheduled for the first quarter of 2005 at an annual rate of 52,000 gold equivalent ounces.

The Phase 2 underground sulphide project feasibility study is also progressing well. Gold production remains targeted for early 2006 at an annual rate of 200,000 ounces.

Exploration drilling within the 192 square kilometre AGF licence area is ongoing to secure future gold reserves to replace those mined and increase both production throughput and life of mine.

 

END

Contacts:

Oxus Gold plc
Richard Shead
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