Andash Drilling Update

Aurum Mining PLC 25 May 2006 For immediate release 25 May 2006 AURUM MINING PLC ('Aurum' or 'the Company') Drilling Update on the Andash Deposit Aurum Mining plc (AIM: AUR), the company formed to acquire gold and other mineral extraction projects in the Former Soviet Union (FSU), is pleased to provide an update on progress at its Andash gold and copper project in the Kyrgyz Republic following the completion of an infill drill programme at Andash Zone 1 and of on-going exploration work at Zones 2 and 3. Highlights • Completion of infill drilling programme for Zone 1 meets expectations. Inferred resources will be transferred to Measured and Indicated • Initial exploration drill results confirm extensive mineralisation of Zones 2 and 3 • On track for completion of Feasibility Study in September The infill drill programme at Zone 1 was designed to provide further details on the copper and gold grades in the Zone 1 orebody to allow the completion of the Feasibility Study while the exploration work at Zones 2 and 3 was designed to give an improved understanding of the additional resource opportunities within the licence area, including the location of higher grade deposits. The infill programme at Zone 1 comprised 19 NQ core holes totalling 2,652m designed to confirm previous copper and gold grades, but also to provide a more robust and up-graded classified resource. Although all of the assay results are not yet available, initial results and inspection of cores confirm previous estimates. This will allow Wardell Armstrong International (WAI) to update the current resource model to bring all the inferred category to Measured and Indicated as stipulated by the JORC Classification and complete the Feasibility Study by September 2006. Aurum has also completed 5 HQ core holes totalling 713m for geotechnical purposes and resource estimation in and around the proposed pit. In addition, the Company has embarked on an aggressive exploration programme to test the extent of Zones 2 and 3, which lie to the west of Zone 1, and to look at the possible faulted extension to Zone 1 itself. Recent analysis of new geological and geophysical data on Zones 2 and 3 greatly improves our understanding of the structural and morphological characteristics. Most mineralised zones are confined to approximate east-west trending, gently northerly dipping structural-tectonic zones, with thickness variations from tens to hundreds of metres. These zones appear further localised by cross-faults. Preliminary work has indicated that the distance between orebodies is approximately 200m. They have variable thickness and can be traced along strike for more than 1km. The gold and copper content also appears variable from near background levels up to tens of g/t gold and 1.5% copper. The proliferation of altered, hornblende-rich host rocks in proximity to normal composition granodiorites appears to be an important feature for the detection of further mineralisation. Such mineralisation was uncovered during cleaning and deepening of an old trench at the presumed continuation of Zone 2 in hornblende siltstones giving an intersection of 4m at 13.3g/t Au. Importantly, halos of such hornblende alteration have been found to be associated with geophysical anomolies (IP) characterised by high polarisation (4-6%), which may be associated with concealed sulphide mineralisation. This suggests that other IP anomalies may indicate similar alteration zones. To test this, Aurum has embarked on a preliminary exploratory drilling programme on a 200x80-280m grid, with sections aligned across the known mineralised zones, and to intersect the large IP anomaly identified to the north of Zones 2 and 3. Aurum proposes to drill 5-6 sections with 3-4 holes per section to a depth of 150-250m, giving a total distance of some 3,000m. However, this programme will be constantly evolving as new geological data emerges. The first drilling results from the new programme have been received. Three holes, P15, P16 and P17, drilled approximately 50m apart all intersected mineralization in zones 2 and 3, with hole P17 testing the near surface ore zone and holes P15 and P16 intersecting the structure further down dip. Holes P15 and P16 proved the presence of blind mineralisation localised in a brecciated granodiorite (similar to Zone 1) and associated with hornblende siltstone. Hole P17 also intercepted mineralised breccia and hornblende siltstone. This supports our hypotheses of using the hornblende siltstone, which shows up as an IP anomaly, as an exploration target. Results from the 3 holes show the ore zone intersections vary in thickness. In hole P17, where the ore zone comes close to surface, mineralization is seen to occur as thin stringers in a clay rich formation. This becomes more coherent down dip as seen in holes P15 and P16. The ore zone is seen to increase in thickness and grade in the down dip portion to approx 50m in hole P15, with gold values varying between 1.5g/t and 0.31g/t. Although the average grade from the 3 holes is 0.49g/t, initial interpretation indicates that that selective mining of the ore zone would be possible. Intersections of higher grade in hole P15 (26m at 1.51g/t) indicate that gold grade improves down dip. This confirms what has been seen in previous drilling, which has shown that the gold content increases to an average of 1.4-1.5g/t to a maximum of 2.23-2.35g/t. Higher level targets analogous to this are the aim of this present exploration programme. Encouragingly, dozer road preparation for hole P37 (the next hole to be drilled) has already cut previously unknown surface mineralisation. WAI has reviewed the planned exploration programme and is monitoring progress to optimise the probability of the discovery of additional, near surface mineralisation. Mark Jones, Aurum Mining's Chief Executive, said: 'These results represent another important step forward for the Company and give us confidence both in meeting our target of completing our Feasibility Study for Andash Zone 1 in September and increasing the resource level in Zones 2 and 3.' For further information: Aurum Mining plc Tel: 020 7478 9050 Mark Jones, Chief Executive Arbuthnot Securities Tel: 020 7012 2000 Graham Swindells Buchanan Communications Tel: 020 7466 5000 Mark Court/Amy Rajendran Notes to editors Aurum Mining joined the AIM market of the London Stock Exchange in May 2004 with the strategy of seeking, evaluating and acquiring gold and other mineral extraction projects in the Former Soviet Union (FSU). In January 2005 the Company completed its first acquisition, giving the Company an exploration licence over the Andash gold and copper project in the Kyrgyz Republic. In its State Register, the State Commission of Resources of the Kyrgyz Republic has included 21.7 million tonnes of C1 and C2 reserves from the project, amounting to gold and gold equivalent of more than 1.5 million ozs. This information is provided by RNS The company news service from the London Stock Exchange
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