LONDON: 26 August 2003 - Oxus Gold plc ("Oxus") is pleased to announce that mining operations at its Amantaytau Goldfields ("AGF") project on the Tien Shan Gold Belt in Uzbekistan have commenced, as scheduled.

Oxus CEO Bill Trew said today that much of the construction and infrastructure required to bring the AGF phase 1 Oxides project to account had been completed. "We're right on track to pour our first gold in December 2003, after having started construction in February this year," he said. 

AGF Oxides will initially start mining at the rate of 1 million tonnes per annum from a reserve of 4.3 million tonnes at a grade of 5 grams per tonne. Within the first year of production the carbon in pulp gold plant will produce approximately 200,000 ounces of gold at a cash cost of US$106 per ounce, and is expected to generate cash flows of at least US$22 million to Oxus.

"With the on-target start of mining activities at AGF Oxides we are firmly on track in our stated strategy of transforming Oxus from a cash consumer into a low-cost, low-risk gold producer in one of the world's largest and most highly prospective gold provinces," Trew concluded.

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Contacts:

Oxus Gold plc
Tel: +44 (0)20 7907 2000
John Donald, COO

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

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