Oxus Mining plc (“Oxus” or “the Company”) (OXS.L) announces that the Kyrgyzstan Government’s State Agency for Geology and Mineral Resources has annulled the mining licence issued to Talas Gold Mining Company (“Talas Gold”) in respect of the Jerooy gold deposit in Kyrgyzstan. Oxus’ subsidiary, Norox Mining Company Limited (“Norox”), is disputing the annulment of the mining licence, which was issued by the State Agency for Geology and Mineral Resources on 6 March 2000. News of the annulment was published by the Interfax News Service on 5 July 2002. Talas Gold is 66.67% owned by Norox and 33.33% owned by Kyrgyzaltyn, the State owned mining company.

Talas Gold was granted the exclusive rights to develop the Jerooy gold deposit pursuant to a Joint Venture Agreement signed on 9 September 1998. The Joint Venture Agreement remains in full force and effect. The annulment of the mining licence does not affect Norox’s rights to develop the Jerooy project, and complete the bankable feasibility.

Norox regards the annulment as invalid on the basis that the licence agreement provided for the completion of a feasibility study based on certain tax privileges for the Jerooy project. These tax privileges have not been forthcoming and the development of the project therefore did not commence, due to the historically low gold price.

Following the recent rise in the gold price, Norox confirms that it is currently working to complete a definitive feasibility study, based on the existing Kyrgyz tax regime, by 30 September 2002, in accordance with a work programme recently agreed at a general meeting of shareholders of Talas Gold. This study, which is being undertaken by Wardell Armstrong of the UK, will form the basis for project finance negotiations with appropriate lending institutions. Norox has also commenced discussions with the Kyrgyz Government with a view to overturning the annulment, and obtaining a new licence agreement based on the current work programme.

Norox is 96% owned by Oxus, and 4% by Conquest Resources Limited of Canada (YQR - CDNX) (“Conquest”). Conquest can earn a 15% interest in Norox by expending $1m to complete the feasibility study on Jerooy. In addition, Oxus has granted Conquest an option, dependent on the results of the feasibility study and exercisable by 31 March 2003, to acquire the remaining 85% of Norox for $7m, payable $3.5m in Conquest shares and $3.5m in cash.

Oxus’ principal project at Amantaytau in Uzbekistan is unaffected. Oxus remains focused on concluding the project finance arrangements to enable the construction of its Amantaytau Phase I mine in Uzbekistan.

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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