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Oxus Gold PLC (OXS)

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Wednesday 27 October, 2004

Oxus Gold PLC

Final Results

Oxus Gold PLC
27 October 2004

27th October 2004



                                 Oxus Gold plc
                           ('Oxus' or 'the Company')

                 Final results for the year ended 30 June 2004



Achievements during the year


•  $10.9 million retained profit for the year.


•  $17.5 million dividend paid to shareholders by way of shares in
   Marakand Minerals.


•  Amantaytau gold mine brought into production, on time, on specification
   and within budget.


•  Pre-feasibility study to increase the Amantaytau Oxide production to 2
   million tonnes per annum completed.


•  Started construction at the Vysokovoltnoye (Gold/Silver) deposit.


•  Started construction at Jerooy.


•  Corporate Bond of Uzbek Soum 5 billion ($5m) issued by Amantaytau
   Goldfields - the largest issue yet placed on the Tashkent Securities Exchange.



LONDON: 27th October 2004 - Oxus Gold plc (OXS.L) reports a profit before tax of
US$11.4 million for the 12 months ended 30 June 2004.  Earnings after tax and
minorities amounted to $10.9 million, equal to 5.32 cents per share.



Oxus' joint venture gold mine in Uzbekistan, Amantaytau Goldfields ('AGF'),
started production in February 2004 and produced a total of 59,689 ounces of
gold to the end of June. The Company received attributable income of $3.74
million from AGF during this period, excluding interest and fees.  After
accounting for administration expenses and deferred exploration costs, Oxus
recorded an operating loss of $0.8 million.  In addition, Oxus made a net gain
of $12.25 million on the disposal of part of its stake in Marakand Minerals.



Extracts from the Chief Executive's Review


'The last twelve months have been a momentous time for shareholders, staff and
all involved with Oxus.  During this period the Company has been transformed
into a significant low cost gold producer, achieving the goals set during the
year. It gives me enormous pleasure to report on the strides the Oxus team has
made in this period.



'One development of some significance has been the reduction in AGF's gold
hedging commitments which were set in place as part of the banking arrangements
for the project finance.  Since production started in February we have been
delivering into those hedges and have reduced the number of hedged ounces by a
third from 263,000 ounces to 177,240 ounces.  This reduction in the hedging
commitment, together with our forecast increase in production at AGF, puts us in
a good position to benefit even further from increased gold prices.



These positive and exciting developments have not occurred without some
setbacks, the most notable being the purported annulment of the Jerooy licence.
Management is continuing the ongoing construction of the mine, whilst
negotiating the license return and expects the plant to be completed during
2005, as originally planned.



'Despite the positive progress there is still much to be done to meet
challenging goals. The management team's principal focus during this next period
will be to increase production substantially whilst reducing operating costs.



'A major exploration programme is also planned in order to prove up our
substantial resources and replenish reserves so that shareholder value can be
enhanced, and with this in mind we have set ourselves the following goals for
2005:



Goals



•  Increase Amantaytau oxide production to 2 million tonnes per annum
   at cash costs of lower than $140 per ounce.

•  Start production at Vysokovoltnoye.

•  Complete construction at Jerooy and commence gold production.

•  Complete the elimination of Amantaytau's hedge exposure.

•  Bring to reserve at least an additional 500,000 ounces of existing gold
   resource.

•  Complete the Amantaytau Sulphide feasibility study and financing, and
   commence construction.



'The achievement of these goals will ensure that our production growth profile
remains on track and contribute significantly to Oxus Group's goal of becoming a
1 million ounce per year producer by 2008.



'We look forward to the future with confidence and expect the next twelve months
to yield further improvements to the good results already achieved.'



Ends.



Enquiries:


Oxus Gold plc                                   Tel:  +44 (0)20 7907 2000
Bill Trew, Chief Executive Officer
Jonathan Kipps, Finance Director


Bankside
Keith Irons                                     Tel:  +44 (0)20 7444 4155
Simon Rothschild                                Tel:  +44 (0)20 7444 4153





Consolidated Profit and Loss Account


                                                                         Year           
                                                                         ended          18 month period ended     
                                                                     30 June 2004            30 June 2003
                                                                        $'000                   $'000


Group turnover                                                           1,932                  762
Income attributable from joint venture                                   3,738                  -
Administration expenses                                                  (5,287)                (2,677)
Deferred exploration and evaluation expenditure incurred by Marakand     (1,198)                -
Minerals Limited

Group operating loss                                                     (815)                  (1,915)
Net interest receivable / (payable):
- Group                                                                  212                    (54)
- Joint venture                                                          575                    447

Loss on ordinary activities before exceptional items and taxation        (28)                   (1,522)
Exceptional items                                                        (790)                  (1,293)

Loss on ordinary activities                                              (818)                  (2,815)
Net gain on disposal of minority interest in Marakand Minerals Limited   12,252                 -

Profit (loss) on ordinary activities before taxation                     11,434                 (2,815)
Tax on profit (loss) on ordinary activities                              (5)                    (17)


Profit (loss) on ordinary activities after taxation                      11,429                 (2,832)      
Minority interests - Group                                               (539)                  -

Retained profit (loss) for the financial year (period)                   10,890                 (2,832)

Profit (loss) per share
- basic (per share cents)                                                5.32                   (1.71)
- diluted (per share cents)                                              5.20                   (1.71)



The results above are derived from continuing activities.





Consolidated Cash Flow Statement (extract)    
                                                                          Year   
                                                                          ended           18 month period ended  
                                                                      30 June 2004            30 June 2003
                                                                          $'000                   $'000

Net cash outflow from operating activities                               (11,787)                 (1,769)
Returns on investments and servicing of finance                             787                     393
Taxation                                                                      -                     (36)
Capital expenditure and financial investment                              (5,040)                 (7,922)
Acquisitions and disposals                                                 6,535                       -

Net cash outflow before use of liquid resources and financing             (9,505)                 (9,334)
Financing                                                                 11,191                  10,452

Increase in cash                                                           1,686                   1,118




Consolidated Balance Sheet


                                                                          At                     At
                                                                     30 June 2004           30 June 2003
                                                                        $'000                  $'000

Fixed assets
Tangible assets                                                          193                    -
Exploration and mining rights                                            28,456                 -
Exploration and evaluation properties                                    12,354                 15,113
                                                                         41,003                 15,113
Investments
Interests in joint ventures

 Share of gross assets                                                   25,844                 12,134
 Share of gross liabilities                                              (17,987)               (8,015)
                                                                         7,857                  4,119
Other investment
Loan to joint venture                                                    14,438                 12,806
                                                                         22,295                 16,925
Total fixed assets                                                       63,298                 32,038

Current assets
Debtors                                                                  7,107                  265
Cash at bank and in hand                                                 5,541                  3,855
                                                                         12,648                 4,120
Creditors - Amounts falling due within one year                          (741)                  (2,158)
Net current assets                                                       11,907                 1,962
Total assets less current liabilities                                    75,205                 34,000
Creditors - amounts falling due after one year                           (1,761)                -
Total assets less liabilities                                            73,444                 34,000

Capital and reserves
Called up share capital                                                  3,289                  2,824
Share premium account                                                    5,861                  18,827
Merger reserve                                                           34,929                 34,929
Capital reserve                                                          19,656                 -
Profit and loss account                                                  (4,416)                (22,590)

Total shareholders' funds                                                59,319                 33,990
Minority interests                                                       14,125                 10

Capital employed                                                         73,444                 34,000








Notes

1. The above financial information for the year ended 30 June 2004 is audited, 
   with an unqualified opinion, and does not constitute statutory
   accounts within the meaning of section 240 of the Companies Act 1985. The
   financial information for the 18 months ended 30 June 2003 has been extracted
   from the accounts for that year, which has been delivered to the Registrar of
   Companies and on which the auditors gave an unqualified opinion. Statutory
   accounts for the year ended 30 June 2004 will be delivered to the Registrar
   of Companies. The Annual Report will be posted to shareholders in mid- 
   November 2004 and the Annual general Meeting will be held on 8 December 2004.


2. Exceptional items comprise legal costs arising from abortive 2002 project 
   financing costs ($634,000) and legal costs arising on the application to 
   court to convert the share premium to distributable reserves ($156,000).


3. The basic and diluted profit per share has been calculated by reference to a
   profit, after taxation, of $10,890,000 (2003 - $2,832,000 loss) and the 
   weighted average number of ordinary shares in issue of 204,519,144
   (2003- 165,551,285).


4. The directors do not recommend the payment of a dividend in respect of this
   period (2003 - nil). A dividend was paid to the Company's shareholders 
   equivalent to one share in Marakand Minerals Limited for every ten
   shares held in Oxus as at 5 February 2004, valued at $17,490,000. Following
   approval from the courts, this distribution was made from distributable 
   reserves transferred from the share premium account and has not been
   reflected in the profit and loss account.






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