Further to recent announcements regarding the Khandiza project in Uzbekistan, the directors of Oxus Gold plc ("Oxus" or "the Company") (OXS.L) are pleased to announce that the Company intends to distribute part of its shareholding in its subsidiary, Oxus Minerals Corporation Limited (to be renamed Marakand Minerals Limited) ("Marakand"), to its shareholders. The proposed distribution is subject to shareholder approval at EGM and a court order, and shareholders will be kept fully informed as to the process and the relevant dates. It is proposed that shareholders will receive one share in Marakand for every ten shares held in the Company. Marakand has recently engaged Williams de Broë Plc to admit its shares to trading on the Alternative Investment Market of the London Stock Exchange ("AIM") as soon as the relevant work relating to the prospectus can be completed. It is expected that the trading will commence during December 2003.

The distribution represents approximately 20% of the issued share capital of Marakand. The Company will remain the majority shareholder in Marakand with approximately 60%. The remaining 20% of Marakand is held 18% by institutional investors and 2% by directors and senior management of the Company and / or Marakand following a recent private placement by Marakand of 20 million shares at 20p each for gross proceeds of £4 million. Marakand currently has outstanding 101 million shares and 20 million warrants to subscribe for shares at 40p each exercisable within three years. It is not intended to raise any fresh funds at the time of admission of Marakand's shares to trading on AIM.

Marakand intends to complete a feasibility study on its high grade Khandiza zinc-silver deposit in Uzbekistan, with a view to commencing construction in Q4 2004.

Bill Trew, CEO of Oxus Gold and non-executive chairman of Marakand, commented: "I am delighted that we can announce our intention to distribute value to our shareholders, even before we have poured first gold at Amantaytau. Pre-listing, Marakand's shares have been valued at 20p each. Based on that price, this distribution approximately represents a 4% dividend to Oxus Gold's shareholders at our current share price. Khandiza is an exceptional project and we are confident that it will generate outstanding returns to the Marakand shareholders, as well as adding further value to Oxus Gold."

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Contacts:

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

Williams de Broë Plc
Tel: +44 (0)20 7588 7511
Frank Moxon
Louis Castro

South Africa
Russell & Associates
Tel: +27 (0)11 880 3924
Marion Brower