New business strategy unveiled including review of financing of Amantaytau Goldfields Project

Oxus Mining plc (OXS.L) (“Oxus”) announces changes to the board of directors of Oxus and a review of the financing of the Group’s Amantaytau project.

This follows a board meeting on 8 November 2002 at which representatives of MAED Limited (“MAED”), a company with significant experience in mining industry project management, made a presentation. The briefing covered plans for resolving the funding delays on the Amantaytau Goldfields project, on which MAED is the lead contractor, and on a new business strategy for the Group. Following consideration of the MAED plan, the board decided that it would be in the best interest of Oxus shareholders if MAED were allowed to have significant board representation.

The board changes at Oxus follow MAED’s recent increase in Oxus shareholder voting rights controlled by it to 26.17%. On 29 October 2002, MAED notified the Company that it had increased its control of Oxus shareholder voting rights to 19.29%. It added to its initial holding of approximately 9.4 million ordinary shares in Oxus by agreeing to buy 20 million ordinary shares and acquiring the voting rights over 5.6 million ordinary shares from Newmont Mining Australia Ltd and its subsidiaries. On 5 November 2002, MAED notified the Company that it controlled the voting rights over a further 6.88% of the issued share capital of Oxus.

Immediate changes to the board of Oxus Mining plc

William Trew, John Donald, Jonathan Kipps, and Richard Shead were appointed as directors of Oxus on 14 November 2002. On 14 November 2002, Roger Turner, Charles Cooper, Guido Pas and AnthonyWarrender resigned as directors of Oxus.

The board of Oxus now comprises Michael Beckett (non-executive chairman), William Trew (chief executive), John Donald (chief operating officer), Richard Wilkins (commercial director), Michael de Villiers (finance director), Mark Wellesley-Wood (non-executive director), Jonathan Kipps (non-executive director), and Richard Shead (non-executive director).

Amantaytau finance status and future strategy

As reported on 30 September 2002, a revised target of 8 November 2002 was set for the achievement of all Conditions Precedent under the US$ 31 million Senior Loan Facility offered by Société Générale and the syndicate banks to enable Oxus to drawdown on the senior project finance facility. Oxus had satisfied, or was in a position to satisfy, all the required conditions to drawdown on the senior project finance facility except for the provision of a further US$16.8 million (comprising US$15.3 million direct contribution to the project and US$1.5 million for cost overruns) to complete the construction funding requirement. As all Conditions Precedent could not be met the facility offered by Société Générale and the syndicate banks has now lapsed.

Oxus reports that it has now presented a paper to Société Générale and the syndicate banks, for their consideration, in respect of a revised financing strategy for its Amantaytau Phase 1 open pit gold mine. The proposed new strategy envisages a lower total capital cost for the project. It is proposed that cost reductions be achieved through lease purchasing of equipment and revised infrastructure and support requirements.

Arranging the required funding to finance the Amantaytau Goldfields project is a priority for the new board. The board will also be reviewing a range of mining and construction options to ensure that the mine becomes fully operational as soon, and as cost effectively, as possible.

Corporate governance

MAED has given the Company, Brown Shipley and the board undertakings that all commercial transactions and relationships between MAED (or any of its associates) and the Oxus Group will be at arm’s length and on a normal commercial basis.

The board has appointed a committee of independent directors to deal with all commercial proposals involving the Oxus Group, in which MAED has an interest or where there may be a commercial conflict of interest between MAED and the Oxus Group.

The directors intend, so far as is practicable given the Group’s size, to continue to comply with the Combined Code - the principles of good governance and code of best practice appended to the UK Listing Authority’s Listing Rules.

There is and will continue to be a clear division of responsibility at the head of the company with a non-executive chairman and full time chief executive officer.

The Combined Code states that the board should have a recognised senior independent director to whom any concerns can be conveyed. Richard Shead will become the chairman of the committee of independent directors. The new Remuneration Committee of Oxus will be made up of Mark Wellesley-Wood and Jonathan Kipps. The new Audit Committee will be made up of Richard Shead and Jonathan Kipps and the new Nominations Committee comprises John Donald, Richard Wilkins and Jonathan Kipps. The terms of reference of the Committees remain the same.

Bill Trew, the new chief executive of Oxus, commented: “My colleagues and I are delighted to have been invited to join the Oxus Mining Board. Our aim is to ensure that the Amantaytau Goldfields mine is brought into production at the earliest possible opportunity, which will be of benefit to all shareholders.

“Oxus needed new impetus and fresh thinking on how to finalise the financing and bring the mine into production. This new team has great ideas and is confident that the necessary funding can be found to enable this very exciting deposit to be brought into production in 2003, which will create value for shareholders.”

Contacts:

Daniel de Belder/Michael Holmes,
The Communication Group plc Tel: 0207 630 1411

Biographies of the new Oxus board directors and information required by the AIM Rules

William James Trew
Bill Trew has over 22 years of experience in the engineering and mining industry and is a registered professional Engineer with the Engineering Council of South Africa. Mr Trew began his career in 1980 with Gold Fields of South Africa. He has been an engineer for various companies such as Chamber of Mines Research Organisation, Dorbyl Heavy Engineering, and E.L. Bateman Limited. He has been project manager for various mine projects across Southern Africa. In 1990, Mr Trew founded MAED, and currently acts as its managing director. Mr Trew will be resigning from his employment and existing directorships with MAED with immediate effect to take up his new full-time role with Oxus. He has been involved as project manager in many of the company’s major projects, including the Yatela Heap Leach project and the Syama Gold Mine project, both in Mali, West Africa. He holds a B.Eng. (Mech.) Hon. from the University of Wales Institute Science and Technology, and an M.Eng. from Rand Afrikaans University, Johannesburg. He holds, or has held within the last five years, the following directorships:

Current
Birkenhead Holdings Limted
Goldfields of West Africa Limited
Mechanical Analysis & Engineering Design Pty Ltd
ERSE Properties Limited
Core ConstructionLimited
ERF Properties Limited
L. F. Investments BVI Ltd.

Past
MAED Limited
MAED Holdings Limited
MAED Group Laboratories Limited

Jonathan Arthur Kipps
Jonathan Kipps is a South African chartered accountant. He ran the Project Finance Division for the Nedcor Bank in Johannesburg for eight years and went on to become partner and joint owner of Personal Trust Company Limited in Cape Town, subsequently becoming Financial Director of Hornbeck Shipping, based in the Isle of Man. Mr Kipps established Corporate Offshore Limited on the Isle of Man in 1994, and has been a director for eight years. He established Corporate Insurance Solutions Limited earlier this year, which specialises in the professional indemnity and directors and officers insurance market, of which he remains a director. He holds, or has held within the last five years, he following directorships:

Current
A C C Consulting Limited
African Venture Holdings Limited
Association of Corporate Service Providers Limited
Birkenhead Holdings Limited
CA Solutions Limited
Capital Computers Limited
Carnavalet (IOM) Limited
Corporate Insurance Solutions Limited
Corporate Offshore Limited
Dancraig Wine and Spirits Trading Limited
Exploration Ventures Limited
Ferrylane Limited
Foodstate Nutrients Limited
Glotel Limited
Goldfields of West Africa Limited
Gunner Software Solutions Limited
Harmony Gold Limited
Health Resources Limited
Heritage Resources Limited
Imexco Resources Limited
JDR Investments Limited
Kassala Commodities Limited
Kirdale Investments Limited
Leblon Limited
LF Properties Limited
MaCaPs (I.O.M.) Limited
MacInc Limited
Maed Holdings Limited
Maed Limited
Mining Enterprises Limited
Monroe Minerals Holdings Limited
Munich Investments Limited
Outsourcing Management Services Limited
Pano Investment Company
Pyramid Properties Limited
Raynic Limited
Romica Resources Limited
Roxwil International Limited
Satori Business Solutions Limited
Sirius Marketing Communication Limited
SPP Holdings Limited
Strathearn Investments Limited
Thomas Chaloner Limited
Whenever Limited
Xhai Limited
Xpurt (IOM) Limited
Zing Energy (IOM) Limited

Past
Carnavalet Investments Limited
Centaurus Properties Limited
Consulting Design Group Limited, The
Dena International Limited
Enki Investments Limited
Genaire Global (Southern Africa) Limited
Granite Properties Limited
LF Investments Limited
Longmane Limited
Lydia Investments Limited
Micon Tech Europe Limited
Opmin Limited
Pearlman Trading Limited
Polar Investments Limited
Senwood Limited
Western Trading and Shipping Limited

Richard Barry Shead
Richard Shead was appointed managing director of Southern Prospecting Limited, a South African mineral exploration company in 1992, which has developed gold and other mineral ventures in countries such as Botswana, Canada and Greece. He has since worked with two South African listed companies, Lydenburg Exploration Limited as Managing Director and Benguela Concessions Limited as Chief Executive Officer. Mr Shead was also Chief Executive Officer of East Daggafontein Mines Limited between 1997 and 2002. He was also responsible for the merger of the company with Mvelaphanda Resources Limited in February 2002, of which he remains a director. He holds, or has held within the last five years, the following directorships:

Current
Craighall Nominees (Pty) Limited
East Daggafontein Mineral Holdings (Pty) Limited
High-Tech Nominees (Pty) Limited
Inhlasi Mining (Pty) Limited
Mbewu Resources (Pty) Limited
MFC Exploration (Pty) Limited
Mineral Enhancement S.A. (Pty) Limited
Mvelaphanda Resources Limited
Northridge Field Operations (Pty) Limited
Portion 2 of ERF 206 Bedfordview CC
R N H Style Management Services (Pty) Limited
Southern Prospecting (Pty) Limited Limited
Southern Prospecting Holdings (Pty) Limited
Moonstone Diamonds S.A. Pty Limited
Southern Prospecting Management Services (Pty) Limited

Past
Benguela Concessions Limited
Benguela Operations (Pty) Limited
Benguela Concessions (Namibia) (Pty) Limited
Benguela Nominees (Pty) Limited
Dumpco Limited (in voluntary liquidation)
East Daggafontein Mines, Ltd (in voluntary liquidation)
East Daggafontein Mines Limited
Exploration and Prospecting Management Services (Pty) Limited
Incentive Holdings (Pty) Limited
Industrial & Commercial Holdings Group Ltd
Kroondal Platinum Mines Ltd
Marine West Diamond Concessions Holders (Pty)
Moonstone Diamonds (Namibia) (Pty) Limited
Ocean Diamond Mining 6C (Pty) Limited
Ocean Diamond Mining 14C (Pty) Limited
Southern Prospecting Field Operations (Pty) Limited
S P Mineral Rights (Pty) Limited
Stand 129 Nettleton Road (Pty) Ltd
Transvaal Sand Supply Company (Pty) Ltd
Vallivue (Pty) Limited
Venmil Limited

John Clow Donald
John Donald has 31 years experience in the mining industry and is a member of the Association of Mine Managers in South Africa. He began his career with Anglogold in 1970, where he worked for 17 years. Mr Donald then moved to Consolidated Mining Corporation as operations director, and also worked with Randgold Resources as a general manager. Since 1998, he has worked with various companies as consultant and contractor, including with MAED Limited on the Yatela project, and with Anglogold on their Ergo Operations. At present, he works with MAED full-time as projects manager. Mr Donald will be resigning from his employment with MAED and his existing executive directorships with immediate effect to take up his new full-time role with Oxus. He holds, or has held within the last five years, the following directorships:

Current
Thistle Minerals CC Nigel Gold Mining Co. Ltd.

Past
Benoni Gold Holdings Ltd.
Witwatersrand Nigel Ltd.
West Witwatersrand Gold Mines (Pty) Ltd.
West Witwatersrand Gold Holdings Ltd.
Libra Assay (Pty) Ltd.

Save as disclosed below there is no further disclosure required in accordance with Schedule 2, paragraph (f) of the AIM Rules in respect of the above directors.

In 1990, Jonathan Kipps was a director of Pepsi Cola SA (Pty) Limited which was placed in compulsory liquidation when its franchisor withdrew from the South African market as a result of anti apartheid pressure. Also in 1990, Mr Kipps was a director of Shemara Limited which was placed in compulsory liquidation after political violence interrupted access to a development site. An enquiry attached no blame to Mr Kipps.

In 1990, John Donald was a director of Nigel Gold Mining Company Ltd. which was placed in voluntary liquidation with a deficit of approximately 3 million South African Rand. The company has subsequently recommenced trading solvently since 1995.

END

Note to Editors

MAED Limited
Formed in 1986, MAED is a company with significant experience in project management and engineering design, specialising in mineral processing and materials handling.

MAED has been extensively involved in mining, in particular gold mining, having successfully completed a range of contracts for many of South Africa’s leading gold mining companies, including Anglogold, Randgold and Durban Roodepoort Deep. MAED has completed a number of major mining projects including the Yatela Gold mine, the second largest in Mali, and supplied the total infrastructure for the mine. MAED has also carried out extensive project work at the Syama mine, one of the largest open pit gold mines in West Africa.

The company is the main contractor for Oxus Mining’s Amantaytau Goldfields. MAED is the overall project manager for the construction and design of the process plant and infrastructure at the site.

Oxus Mining plc
Oxus Mining was formed in 1996 to explore, develop and mine precious and base metal projects in Central Asia. It was listed on the London AIM market in July 2001. The company’s most advanced gold project is Amantaytau Goldfields, a gold mining operation in Uzbekistan, with estimated reserves of 3 million ounces.