Oxus Mining plc (“Oxus” or “the Company”) (OXS.L) is pleased to announce that Oxus and Amantaytau Goldfields (“AGF”) have signed a senior loan agreement with Société Générale (“SG”), and syndicate partners, Bayerische Hypo- und Vereinsbank AG ("HVB") and the National Bank of Uzbekistan, for a US$31 million project finance facility to be provided to AGF. Oxus has a 50% interest in AGF. The senior loan facility consists of a US$26 million term loan and a US$5 million cost overrun facility and the proceeds will be made available to AGF to finance the construction and commissioning of its Phase I open pit gold mine in Uzbekistan.

Drawdown of the senior loan facility by AGF is subject to the satisfaction or waiver of outstanding conditions precedent, including the requirement for Oxus to fund AGF, on terms satisfactory to SG, with an additional contribution of US$15.35 million for construction and US$1.5 million for cost overruns. Oxus is required to make first drawdown on the senior loan facility within 60 days of signing the senior loan agreement.

Oxus intends to fund this additional contribution through the proceeds from (a) Oxus’ placing and open offer of ordinary shares completed in June 2002, and (b) a proposed subordinated debt facility for the issue of guaranteed loan notes to be placed on behalf of Oxus. The issue of these notes has not been underwritten. Oxus intends the collateral on the notes to be guaranteed by an AA rated guarantor (Standard & Poor’s Rating Service).

In respect of both the SG senior facility and the subordinated debt facility, Oxus is being advised by Endeavour Financial. Both Oxus and Endeavour Financial continue to work with the guarantor towards finalising the documentation for the proposed subordinated debt facility. The terms of subordination required by SG under its senior loan agreement have been agreed to by all parties.

Oxus intends to raise US$22 million from the proposed subordinated debt facility. From the proceeds Oxus would advance US$15.35 million to AGF for project construction, with the balance being used to cover costs and escrowed premium and interest for the notes and guarantee. From the proceeds of the equity fund-raising, Oxus would advance an additional US$1.5 million to be escrowed by AGF against cost overruns.

The Amantaytau licence areas contain 26 known gold deposits with a total resource of 6.6 million ounces of gold. These areas are within a 35 kilometre radius of one of the world’s largest gold mines, Muruntau. Within this resource there are 3.03 million ounces of proven and probable reserves to-date and the Phase I mine is based on 1 million ounces of this. The ongoing reverse circulation drilling programme is focused on bringing additional mineable reserves into the Phase I project to increase the annual production and extend the 9 year mine life. The planned production in the first 12 months of production, after a 10 month construction period, is 175,000 ounces of gold at cash costs of less than US$100 per ounce. The Phase II underground project has proven and probable mineable reserves of 2.03 million ounces grading 11.5g/t gold with a designed production rate of 190,000 ounces of gold per year for 10 years. Fuller information regarding Oxus, its projects and the debt facilities is detailed in the placing and open offer prospectus dated 24th May 2002.

Roger Turner, Chief Executive of Oxus, said today: “We are very pleased to have signed the senior loan agreement with Société Générale and the syndicate banks. This represents a significant milestone towards drawing down the funds which will enable construction of our Amantaytau Phase I gold mine to commence during the third quarter of 2002. First gold production is targeted for mid 2003.

“We are also much encouraged by the participation in the banking syndicate of the National Bank of Uzbekistan. We feel this is an excellent example of Uzbekistan’s support and understanding of the mining sector.”

END

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

Email: oxus@oxus.demon.co.uk