LONDON: 11 December 2003 - Oxus Gold plc ("Oxus" or "the Company") has today posted a circular to shareholders regarding the proposed cancellation of the Company's share premium account and distribution of shares in Marakand Minerals Limited ("Marakand") to Oxus shareholders.

On 17 October 2003 the Board announced the intention to distribute part of the Company's shareholding in its subsidiary, Marakand, to Oxus' shareholders (the "Dividend in Kind"). The proposed Dividend in Kind is subject to the approval of Oxus shareholders at an extraordinary general meeting ("EGM") and confirmation by the Court of the cancellation of the Company's share premium account.