Underwritten offer from Société Générale completes Amantaytau financing Requirement

Oxus Mining plc (“Oxus” or “the Company”) (OXS.L) is pleased to announce that on 16 August 2002, it signed an agreement with Société Générale for a fully underwritten US$23 million subordinated insured loan to be provided to Oxus’ 100% owned subsidiary, Oxus Resources Corporation (“ORC”).

The subordinated insured loan will have a 4 year bullet repayment term with a fixed interest rate. The first three years interest will be prepaid. The loan is to be guaranteed by an AA rated guarantor (Standard & Poor’s rating service).

Société Générale commented: “Société Générale is delighted to confirm its strong commitment to Oxus and the Amantaytau project in our roles both as arranger of the senior project finance facility to Amantaytau Goldfields and as the provider of the subordinated insured loan to Oxus Resources Corporation. We look forward to building on our already strong relationship with Oxus as it moves into this exciting new chapter of its development.”

ORC will use the proceeds of the subordinated insured loan to advance sufficient funds to Amantaytau Goldfields (“AGF”) to satisfy the financing contribution requirement under the terms of the $31 million senior project finance facility. The senior project finance facility was provided to AGF by a banking syndicate led by Société Générale and was signed on 17 July 2002, constituting a primary facility of $26 million with a $5 million cost over run facility. The balance of the proceeds from the subordinated insured loan to ORC will be used to cover financing costs, prepaid interest and other costs associated with the guarantee.

Draw down of both the subordinated insured loan to ORC and the senior project finance facility to AGF are subject to further documentation of the subordinated insured loan and the satisfaction or waiver of outstanding administrative and legal requirements. All parties are now working towards achieving drawdown in early September.

In respect of both the subordinated insured loan and the senior project finance facility, Oxus is being advised by Endeavour Financial Corporation.

Roger Turner, Chief Executive of Oxus, said today: “We are extremely pleased that the final piece of the financing is now falling into place. We designed the Amantaytau heap leach project on the basis of a $260/oz gold price and, with a cash cost of production of $118/oz, the returns were attractive. Even at substantially lower gold prices than the current spot gold price the project is well able to service the Amantaytau Goldfields project finance loan as well as the subordinated insured loan.

“Importantly, this subordinated insured loan to Oxus has enabled us to minimize shareholder dilution. We are also delighted with the confidence that Société Générale has demonstrated in Amantaytau, Oxus and Uzbekistan by this financing.

“We look forward to achieving draw down and commencing construction at Amantaytau in the very near future. We will then work with our contractors with the aim of bringing the mine into production on time and within budget with first gold production scheduled for mid 2003.”

END

About Oxus Mining
Oxus Mining is an exploration and development company operating principally in Uzbekistan. The Company’s focus is on the Tien Shan Gold Belt and, in particular, in the Amantaytau region where its licence areas encompass 882 square kilometres just 30 kilometres from Muruntau, one of the world’s largest open pit gold mines, currently producing 1.8 million ounces of gold per annum.

In total, Oxus’ projects at Amantaytau have gold reserves of 3.03 million ounces, resources of 6.74 million ounces and further exploration results of 12.5 million ounces. Oxus has a 50% interest in these projects.

The most advanced project is Amantaytau Phase 1, a 1 million ounce gold open pit heap leach project. Oxus expects to commence construction during Q3 2002, with a view to pouring first gold in mid 2003. The first year’s production is estimated to be 175,000 ounces at a cash cost of under $100/oz gold. The project’s life of mine cash operating costs are estimated at $118/oz with ungeared total costs of $208/oz.

The Tien Shan Gold Belt represents the second largest gold province in the world after South Africa’s Witwatersrand Basin, containing over 400 million ounces of gold in reserves and historic production. Oxus has exploration rights to a further 2,000 square kilometres on the belt.

Contacts:

Oxus Mining
Tel: +44 (0) 1483 714 411
Roger Tuner, CEO
Sacha Borthwick, VP Corporate Development

Brown Shipley Corporate Finance
Tel: +44 (0) 20 7606 9833
Bill Staple

College Hill
Tel: +44 (0) 20 7457 2020
Archie Berens

Website: www.oxusminingplc.com