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Oxus Gold PLC (OXS)

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Monday 15 September, 2003

Oxus Gold PLC

Proposed demerger

Oxus Gold PLC
15 September 2003


                                 Oxus Gold plc

                Proposed demerger of Khandiza base metals project


London, 15 September 2003. The Directors of Oxus Gold plc (the 'Company') have
today announced their intention to seek a separate quotation for the Khandiza
base metals project in Uzbekistan. Khandiza is owned by Oxus Minerals
Corporation Limited ('Oxus Minerals'), a wholly owned subsidiary of the Company.
Plans are currently being drawn up, in conjunction with the Company's financial
advisers, to demerge Oxus Minerals by way of either a flotation or a reverse
take-over, thereby allowing the Company to focus on the development of its gold
assets at Amantaytau and Jerooy. The demerger should also enable the Company to
unlock significant value within Khandiza currently unrecognised in the group
balance sheet whilst maintaining a significant stake in the project.

Bill Trew, CEO of Oxus commented: 'This proposed transaction will allow our
exceptional zinc-silver project to be financed and developed separately to Oxus'
gold assets, whilst utilising the technical skills and the regional
relationships within the Oxus group. We believe that a separate quotation for
Khandiza will enable development of the project to be accelerated, with minimum
dilution for shareholders in Oxus Gold'.


Enquiries:

Oxus Gold plc                        Tel: +44 (0)20 7907 2000
Richard Shead

Williams de Broe Plc                 Tel: +44 (0) 7588 7511
Frank Moxon
Louis Castro

South Africa
Russell & Associates                 Tel: +27 (0)11 880 3924
Marion Brower


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