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Oxus Gold PLC (OXS)

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Wednesday 22 February, 2006

Oxus Gold PLC

Jerooy Project update

Oxus Gold PLC
22 February 2006



news release

For immediate release: 22 February 2006

                                 Oxus Gold plc

                          JEROOY PROJECT STATUS UPDATE

LONDON 22 February 2006: Oxus Gold plc ('Oxus' or the 'Company') announces that
on 21 February 2006 it served notices of disputes on the Kyrgyz Government in
respect of the United Kingdom - Kyrgyz Republic Bilateral Investment Treaty, the
United States - Kyrgyz Republic Bilateral Investment Treaty, the Law on
Investments of the Kyrgyz Republic, and the Talas Gold Mining Company Joint
Venture Agreement. The dispute notices invite the Kyrgyz Government to engage in
consultations and negotiations with the Oxus Group with a view to agreeing upon
an amicable resolution of the disputes, failing which the Oxus Group intends to
pursue claims in international arbitration.

With construction of the processing plant at the Jerooy mine site nearing
completion, pursuant to a government issued construction license, project
development has reached the stage where the approval of the Kyrgyz Government is
required to start mining. Such approval has not been forthcoming and without the
reinstatement of the Jerooy mining license, Talas Gold is not in a position to
extract ore for future feed into the processing plant. As a result of this
failure by the Kyrgyz Government to reinstate the mining license, construction
at the project site has been put on hold pending a satisfactory resolution to
the licensing issue. Gold production from the Jerooy deposit is therefore likely
to be delayed.

Bill Trew, CEO of Oxus, speaking from Bishkek, stated 'We have been building the
Jerooy mine in good faith and with the express encouragement and full knowledge
of the Kyrgyz Government. We remain committed to delivering gold from the
project as soon as possible but we need the full cooperation of our Kyrgyz
partners. We are ready to enter into negotiations at any time. If we can resolve
the licensing issue swiftly we can complete construction and still produce gold
later this year.'

                                     -END-


For further information, please contact:

Oxus Gold plc
Richard Wilkins/Joanna Solino      Tel: +44 (0)20 7907 2000

Bankside Consultants Ltd.
Keith Irons/Oliver Winters         Tel: +44 (0)20 7367 8873




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