Oxus Gold plc ("Oxus") (OXS.L) is pleased to announce that preliminary construction work has commenced at the Jerooy gold project in Kyrgyzstan.

The Jerooy project, situated some 300 kilometres by road from the Kyrgyz capital city Bishkek, has a total resource of 3.45 Moz, with a minelife of 11 years. Production is planned at a rate of 1,000,000 tonnes per annum, commencing in mid 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 estimated to be $133 / ounce.

Oxus has a holding of 66.7% in Jerooy via Norox Mining Company Limited, a wholly owned subsidiary, with the remaining 33.3% held by Kyrgyzaltyn, a Joint Stock Company owned by the Kyrgyz Government.

A recently completed feasibility study was presented to Kyrgyzaltyn and the Kyrgyz government at the end of August 2003. This detailed study identified that $56.9m pre-production capital expenditure would be required, yielding a project NPV at 10% pa of $112 million and an IRR of 43%. It is intended that the project financing is completed by March 2004, enabling full construction to commence in April 2004.

This announcement comes less than two months after mining operations started, as scheduled in August this year, at Oxus' Amantaytau Goldfields (AGF) oxide project in Uzbekistan. AGF remains firmly on track to pour first gold by the end of December 2003.

Oxus CEO Bill Trew said today, "The Oxus management team is gearing up for the fastest possible development of the Jerooy gold project - comprising the largest known unexploited gold deposit within the Kyrgyz Republic. The beginning of construction at Jerooy marks another milestone on Oxus' journey to becoming a low-risk, low-cost producer in one of the most highly prospective gold regions in the world."

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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