Oxus Gold plc ("Oxus" or "the Company") (OXS.L), after the completion of an additional 31 hole diamond drilling programme, has restated the base metal "measured and indicated" resources of its zinc-silver-gold-copper-lead deposit at Khandiza in Uzbekistan.

The additional drilling data has been combined with the results of some 77,000 metres of drilling completed in 1974 during Soviet exploration as well as channel and bulk sampling from 23 kilometres of underground exploration workings. By increasing the cut-off grade from 4%, as used in the preliminary feasibility study, to 5% zinc there is a significant increase in the grades of zinc, lead, copper and silver but a decreased resource tonnage. The potential for a smaller higher-grade mine at a lower capital cost will now be evaluated. However, the funding and development of the Amantaytau gold project remains as the Company's only short-term construction and development objective.

The new resources have been independently audited by CSMA Consultants Limited (CSMA) and are summarised below and compared to the previous resources used in the September 1998 preliminary feasibility study:

Khandiza is included in a 6,000 square kilometre exploration area which is part of a major base metal and gold province on the southern margin of the Tien Shan Gold Belt in Uzbekistan. The proposed mining licence area around Khandiza covers an area of 145 square kilometres within which there are a further 10 known base metal exploration targets. CSMA states that there is 'potential to significantly increase the Khandiza resource base'.

The following drill hole intersections are the most significant in the 31-hole drill programme at Khandiza:

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Contacts:

Oxus Mining
Roger Turner, CEO
Michael de Villiers, Finance Director
Tel: +44 (0)1483 714411

Old Mutual Securities
Frank Moxon, Director
Tel: +44 (0) 20 7002 4618

College Hill
Archie Berens
Kate Aquila
Tel: +44 (0)20 7457 2020