Sale of shares

KazakhGold Group Ltd
21 July 2006



21 July, 2006


Not for release or distribution, directly or indirectly, in or into the United
States, Canada, Japan or Australia

                            KAZAKHGOLD GROUP LIMITED


KazakhGold Announces the Sale of Global Depositary Receipts by Gold Lion Limited


KazakhGold Group Limited (the 'Company', London: KZG) announces today the sale
of 5.5 million secondary shares of the Company by Gold Lion Limited in the form
of Global Depositary Receipts (the 'Transaction').


Gold Lion Limited ('Gold Lion') is wholly owned by Abacus (C.I.) Limited as
trustee of The ABM SK Trust, a Jersey discretionary trust whose only named
beneficiaries are members of the Assaubayev family.


Gold Lion has sold 5.5 million existing shares in the Company, in the form of an
aggregate of 5.5 million Global Depositary Receipts ('GDR') at a price of US$
21.00 per GDR. The sale represents approximately 11.5% of the issued share
capital of the Company. The free float of the Company has consequently increased
to approximately 39% with Gold Lion Limited retaining approximately 60% of the
Company after the Transaction.


ING acted as Sole Bookrunner in the Transaction.  Mirabaud acted as Selling
Agent.


Kanat Shaikhanovich Assaubayev, President of KazakhGold, said:


'We are pleased that this sale has met with a positive response from the
investor community. The proceeds will be used to make passive portfolio
investments in Kazakhstan and internationally, and the family will not invest in
any company competing with the Company.  As a family, we remain committed to
retaining our majority shareholding and our full time executive involvement in
KazakhGold. The operational performance of the Company remains our principal and
most important focus.'



Further Information:

Aidar Assaubayev
Deputy Chief Executive
KazakhGold Group Limited
Tel:     [phone]
Email:   [e-mail]



Ron Marshman
City of London PR
Tel:     [phone]
Email:   [e-mail]


www.kazakhgold.com



This announcement does not constitute or form part of any offer of securities or
constitute an invitation or solicitation of any offer to purchase or subscribe
for any securities of the Company.

This announcement is not an invitation nor is it intended to be an inducement to
engage in investment activity for the purpose of Section 21 of the Financial
Services and Markets Act 2000 of the United Kingdom ('FSMA').  To the extent
that this announcement does constitute an inducement to engage in any investment
activity, it is directed only at (i) persons who are investment professionals
within the meaning of Article 19(5) of the Financial Services and Markets Act
2000 (Financial Promotion) Order 2005 of the United Kingdom (the 'Financial
Promotion Order'); or (ii) persons who fall within Articles 49(2)(a) to (d)
('high net worth companies, unincorporated associations etc.') of the Financial
Promotion Order; and (iii) any other persons to whom this announcement for the
purposes of Section 21 of FSMA can otherwise lawfully be made (all such persons
together being referred to as 'relevant persons'), and must not be acted on or
relied upon by persons other than relevant persons.  Any invitation or
inducement to engage in any investment activity included within the announcement
is available only to relevant persons and will be engaged in only with relevant
persons.  Anyone other than a relevant person must not rely on this
announcement.

The information contained herein is not for publication or distribution,
directly or indirectly, in or into the United States, Canada, Australia or Japan
or any jurisdiction where such announcement would be unlawful. The materials do
not constitute an offer of securities for sale in the United States, nor may any
securities be offered or sold in the United States absent registration or an
exemption from registration as provided in the U.S. Securities Act of 1933, as
amended, and the rules and regulations thereunder. There is no intention to
register any offer of securities of the Company or to register any securities of
the Company in the United States or to conduct a public offering of any
securities of the Company in the United States.

The information contained herein shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of securities of
the Company in any jurisdiction in which such offer, solicitation or sale would
be unlawful prior to registration, exemption from registration or qualification
under the securities laws of any such jurisdiction.








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