LONDON: 28 June 2004 - Oxus Gold plc ("Oxus" or "the Company") is pleased to announce that it has signed a mandate for Standard Bank London Limited to provide a US$40 million project finance facility for the development of the Company's Jerooy gold project in the Kyrgyz Republic. This project finance facility is subject to the usual mandate terms.

In addition, application has been made for 5,000,000 new ordinary shares of 1p each in the Company to be admitted to trading on the Alternative Investment Market of the London Stock Exchange. The shares are being issued following a placing for cash to Haywood Securities, Toronto at a price of 62p per share. The shares will rank pari passu with existing ordinary shares and dealings are expected to commence at 8.00 am on 2 July 2004. These funds will primarily be used to continue construction at Jerooy until the project finance facility is available for drawdown, anticipated during Q4, 2004.

Oxus has a holding of 66.7% in Jerooy via Norox Mining Company Limited, a wholly owned subsidiary, with the remaining 33.3 per cent. held by Kyrgyzaltyn, a Joint Stock Company owned by the Kyrgyz government. Jerooy is situated about 300 kilometres by road from Bishkek, the Kyrgyz capital city.

Jerooy has a total resource of 3.45 million ounces, containing mineable reserves of 2.4 million ounces at 7.5 grammes per tonne. Production is planned at a rate of 1 million tonnes per annum, commencing by September 2005, producing some 180,000 ounces of gold per annum, 120,000 ounces being attributable to Oxus. The orebody will be mined both by open pit and underground methods. Cash operating costs are currently estimated to be US$133 per ounce.

Oxus CEO Bill Trew said today the Company was looking towards developing and commissioning its second major Central Asian mine during 2005. "Having brought Amantaytau Goldfields in Uzbekistan into production in the record period of nine months, we have proven that we have the expertise and necessary knowledge of Central Asian conditions to bring Jerooy into production in the fastest possible time. The commissioning of this mine will increase Oxus' attributable gold production to well over 200,000 ounces per annum and will put us well on our way to achieving our goal of becoming a 500,000 ounce a year producer by 2008."

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Oxus Gold plc
Richard Shead
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Joe Nally
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