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Oxus Gold PLC (OXS)

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Wednesday 08 March, 2006

Oxus Gold PLC

Interim Results

Oxus Gold PLC
08 March 2006






                                  Oxus Gold plc

            Interim Results for the six months ended 31 December 2005



London: Wednesday 8 March 2006 - Oxus Gold plc ('Oxus' or the 'Company') is 
pleased to report on its interim results for the 6 months ended 31 December 2005 
(the 'period').


Highlights


   •    Net profit on ordinary activities of $4.293 million for the period
        compared to $3.615 million for the same period for 2004
   •    AGF produces 84,119 ounces of gold for the period and 161,615 ounces for
        the year ended 31 December 2005
   •    AGF reports $9.042 million profit for the period and $13.263 million
        profit for the year ended 31 December 2005
   •    AGF project finance repaid and hedge commitments eliminated
   •    AGF total gold production now exceeds 10 tonnes (in excess of 328,000
        ounces produced to date)
   •    AGF's Vysokovoltnoye heap leach project produces first silver and gold
   •    AGF Sulphides project feasibility study completed and awaiting Uzbek
        Government approval
   •    AGF reports significant drilling results for the Asaukak cluster of
        deposits
   •    AGF starts working on major exploration and reserve development programme
   •    Construction of the processing plant and related infrastructure at the
        Jerooy project achieves approximately 80% completion, prior to suspension in
        February 2006 pending the reinstatement of the mining licence
   •    The Group increases its stake in Marakand Minerals to 81.6%
   •    $20 million corporate credit facility drawn down in January 2006.



Report on Activities

Financial Results

The Group reported an unaudited profit on ordinary activities of $4.293 million
for the six months ended 31 December 2005 ($3.615 million - 2004) and $3.779
million ($2.981 million - 2004) after taxation and minority interests.


Amantaytau Goldfields (AGF) in Uzbekistan, contributed $4.521 million ($4.168
million - 2004) towards consolidated revenue, being the Group's 50% attributable
share of profits for the six month period. AGF reports a profit of $13.263
million ($16.128m - 2004) for the year to 31 December 2005 after tax and debt
service.


Operations

The following table summarises operating results for the six months to 31
December 2005


                             Six months to                 Year to
                               31 December    31 December 31 December 31 December
                                      2005           2004        2005        2004


Ore mined, tonnes                  746,700        586,281   1,567,529   1,062,101

Ore processed, tonnes              795,400        555,554   1,465,454     968,682

Average grade (g/t)                    4.3            6.2         4.5         5.8

Average gold recovery (%)             76.7           80.6        77.1        82.6

Gold produced, ounces               84,119         88,822     161,615     148,511

Gold sales, ounces                  91,195         86,199     163,666     138,327

Hedge ounces                        76,699         70,661     140,307     122,789

Spot ounces                         14,496         15,538      23,359      15,538

Average gold price $ per ounce         353            340         346         334

Average cash cost $ per ounce          196            188         202         160

Average total cost $ per ounce         221            211         230         182

Net profit after tax & debt service $9.042m       $8.463m    $13.263m    $16.128m


During the period, the AGF hedge book was eliminated, three months ahead of
schedule and Oxus Gold bought out the balance of the project finance debt of
$8.4 million.

The Vysokovoltnoye project at Amantaytau produced its first silver and gold
during the period under review by the irrigation of test heaps placed on the pad
drainage layer. The crushing plant has operated at full production, producing
stock piles of crushed ore prior to agglomeration and stacking. Significant
quantities of crushed and screened ore have been placed on the pads to form the
cushion layer, and the stacking of agglomerated ore has commenced.

Stacking of the agglomerated ore will continue on the pads until this has
reached critical mass when irrigation will commence. The Merrill Crowe recovery
plant will be complete in March, in time to recover metal from the first stage
of stacking.

Vysokovoltnoye has ore reserves of 1.66 million tonnes at grades of 127 grammes
/ tonne (g/t) silver (6.78 million ounces of silver) and 1.13 g/t gold (60,000
ounces of gold) for ore body number 7 and 2.33 million tonnes at grades of 27 g/
t silver (2.02 million ounces of silver) and 1.24 g/t gold (93,000 ounces of
gold) for ore body number 4. Ongoing work aimed at defining extensions of the
zones may increase the resource base for future growth. Both ore bodies have
very low stripping ratios.

The underground AGF Sulphides project is now undergoing conversion to meet Uzbek
regulatory requirements, prior to full acceptance by the Government of
Uzbekistan, which is expected within the next six months. Progress with the
detailed design of the plant is ongoing, and in particular the process design
criteria where Oxus is considering various technology partners. Access to the
underground ore-body will be available mid-March 2006 via the refurbished Shaft
10 enabling a bulk sample to be obtained. This sample will be used for
confirmatory testwork, essential for the detailed design of plant with a long
lead time.

The Sulphides project is designed to mine the deeper sulphide extensions to the
oxide ore-bodies currently being mined by open-pit methods by AGF at Centralny
and to mine the underground Severny ores. Combined, they contain ore reserves of
9.72 million tonnes at an average grade of 7.75 g/t containing 2.42 million
ounces of gold (at a cut-off of 3.5 g/t gold) within a total mineral resource of
17.73 million tonnes at an average grade of 6.84 g/t, and containing 3.90
million ounces of gold at zero cut-off grade.


Jerooy

On 20 February 2006 the Group announced that it had suspended construction at
Jerooy pending the reinstatement of the mining licence. With the processing
plant approximately 80% complete, remaining construction and subsequent
commissioning of the plant can be achieved during the 3-4 month period required
to prepare the Jerooy deposit for delivery of ore to the plant, provided the
mining licence has been reinstated.

On 21 February the Group announced that it had served four notices of dispute on
the Kyrgyz Government in respect of each of the UK-Kyrgyz Bilateral Investment
Treaty, the US-Kyrgyz Bilateral Investment Treaty, the Kyrgyz Law on
Investments, and the Talas Gold 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.

The Group has indicated that it is prepared to improve the returns to the Kyrgyz
Government from the joint venture as currently structured, and is hopeful that
the licence will be reinstated and that gold production will still commence
later this year. Jerooy is scheduled to produce approximately 180,000 ounces per
year of gold, initially from an open pit mine.

The Group expenditure and mining expenditure to date on Jerooy amounts to $47.7
million.


Other activity

In October 2005 the Company announced that it was withdrawing from an offer to
acquire assets of, and subsidiary company shares in, Eurogold Limited, a company
listed on the Australian Stock Exchange and on the AIM market of the London
Stock Exchange. As the major shareholder, with 15.4% of Eurogold, the Company
continues to monitor developments as part of its ongoing strategic investment
strategy.

Since the year end, the Company has acquired a further 24,592,562 shares in
Marakand Minerals, increasing its stake from 57.23% to 81.58%. The acquisition,
on a three for one basis, will be settled by the issue of 8,197,521 shares in
the Company within five days from the date of this announcement.

Marakand has announced that it has acquired two copper / gold licence areas in
southern Turkey.


Exploration

Reverse circulation (RC) drilling programmes on the Asaukak, Aksai and Northern
Asaukak deposits were completed between October and December 2005. These three
deposits form part of the Asaukak Cluster which is located in close proximity to
Oxus's current mining operations at Amantaytau (10km to the northeast) and
Vysokovoltnoye (6.5km to the south). A total of 7,500m of drilling was completed
on these deposits as part of the planned 100,000m RC drilling programme for the
AGF area.

Two RC drill rigs are currently being used and the programme is due for
completion in 2006. Geological modelling of Asaukak is in progress with the
intention of producing a revised resource as the basis for a new reserve
estimate.


Significant drilled width intersections include:

   • Drillhole SRA 037 intersected 10.38 g/t over 5m at 47m in Asaukak
   • Drillhole SRA 153 intersected 5.26 g/t over 20m at 50m in Asaukak
   • Drillhole SAR 018 intersected 3.52 g/t over 11m at 50m in Northern
     Asaukak
   • Drillhole SAR 051 intersected 4.14 g/t over 5m at 18m in Northern
     Asaukak
   • Drillhole AK 002 intersected 4.57 g/t over 7m at 53m in Aksai
   • Drillhole AK 019 intersected 4.70 g/t over 5m at 44m in Aksai.


Based on these results, additional RC drilling will be planned for Aksai and
Northern Asaukak. On completion, these resources will be converted to reserves
to increase the Oxus Gold plc mineable gold ounces. Overall the drill results
are in line with the anticipated grades for these deposits, based on Soviet and
Uzbek resource estimates which were audited by CSMA Consultants.


Original Russian and Uzbek estimates gave 200,000 ounces of gold in the C1
category and 47,000 ounces of gold in the C2 category for these three deposits.
An additional two deposits within this cluster contain a further estimated
63,000 ounces of gold in the C1/C2 category that will be evaluated further to
the ongoing drilling of this cluster. It is the intention of Oxus, to convert
all Soviet and Uzbek classified resources to JORC compliant resources and
reserves on completion of drilling and remodelling of the deposits.


The RC drilling results from Aksai are encouraging as they confirm the presence
of mineralisation over the whole 350m strike extent of the deposit. This
mineralisation is open ended and additional drilling will be required to test
the northern and southern strike extensions of the deposit. At Northern Asaukak,
800m of strike length has been evaluated by RC drilling, and mineralised
intersections have been returned from the central 500m of this zone. The
mineralisation appears best developed in the south west where the results
suggest that there may be additional mineralised zones developed.


Four new diamond core drilling rigs, two for surface drilling and two for
underground have been recently purchased for use at AGF, two by the Group. The
primary targets for this drilling will be the Amantaytau Sulphides project.
Shaft refurbishment to access the +140 metre level is complete and underground
development refurbishment is progressing well. Underground drilling to target
deeper extensions of the sulphide deposit is scheduled to start in March 2006.


Finally, ASTER satellite imagery interpretation was completed in Q4 2005 and
this work identified several anomalies that correlate with known deposits within
the AGF licence. Other areas (Northern Daugystau, Yuhzny Tumshuktau and
Pridorojny) show alteration in areas not associated with known deposits that
have favourable exploration potential. A structural and alteration geology
interpretation of the AGF licence was completed and will be used to focus
drilling activity.


Directors


Gordon Wylie joined the board of the Company as a non-executive director. Mr
Wylie is a geologist with over 30 years experience in the mining industry both
as an exploration and mining geologist mainly with the Anglo American Group. He
is a former Executive Officer of Exploration and Geology for AngloGold Ashanti.
Gordon Wylie will also serve as a geological consultant to the Group.

Darryl Norton was appointed as alternate director. Mr Norton has in excess of 23
years experience in the engineering and mining industry. He was responsible on
behalf of the contractors, Maed Limited, for the construction of the Amantaytau
Goldfields Oxide plant in Uzbekistan. Mr Norton was previously employed by
Fluor, TWP, Bateman and Gencor before joining Maed Limited.


Outlook

The Group has a profitable production base, potential for increased production
from existing projects in the pipeline, and an impressive resource base. A major
geological programme is underway in order to convert these resources into
reserves. In addition, with the strong in-house skills base and balance sheet,
the Group is well placed to embark on new developments and projects. The Group
remains committed to achieving annual attributable gold production of at least
500,000 ounces by 2008, and with this in mind continues to identify and develop
both exploration projects and strategic and other alliances.

CONSOLIDATED INCOME STATEMENT

------------------------        -----------       -----------        -----------
(US$000)                         Six months        Six months      Twelve months
                                      ended             ended              ended
                                31 December       31 December       30 June 2005
                                       2005              2004        
------------------------        -----------       -----------        -----------
                                (Unaudited)       (Unaudited)          (Audited)
------------------------        -----------       -----------        -----------
Revenue
Gross revenue                        2,406             1,328              3,678
Income attributable from
joint venture                        4,521             4,168              6,437
------------------------        -----------       -----------        -----------

                                     6,927             5,496             10,115

Expenses

Administration expenses            (1,889)           (1,220)            (3,067)
Deferred exploration and
evaluation expenditure
incurred by Marakand
Minerals Limited                     (717)           (1,187)            (2,281)
------------------------        -----------       -----------        -----------

Gross profit                        4,321             3,089              4,767

Stock-based compensation             (653)                -                  -
Foreign exchange (loss) gain         (123)              118             (1,487)

Legal costs arising from
abortive 2002 project financing      (287)             (110)            (1,410)
------------------------        -----------       -----------        -----------
Profit from operations              3,258             3,097              1,870

Net interest receivable:
             - Group                   78               155                696
             - Joint venture          957               363                914
------------------------        -----------       -----------        -----------
Profit before taxation              4,293             3,615              3,480
Taxation                               16                (5)                (6)
------------------------        -----------       -----------        -----------
Profit after taxation               4,309             3,610              3,474
Minority interests                   (530)             (629)            (1,191)
------------------------        -----------       -----------        -----------
Profit for the period               3,779             2,981              2,283
------------------------        -----------       -----------        -----------
Profit per share (US cents)
Basic                                1.31              1.61               0.92
------------------------        -----------       -----------        -----------
Diluted                              1.29              1.58               0.90
------------------------        -----------       -----------        -----------



CONSOLIDATED BALANCE SHEET

----------------------     -------------          ----------        ------------
(US$000)                        As at 31            As at 31       As at 30 June
                           December 2005       December 2004                2005
----------------------     -------------          ----------        ------------
                             (Unaudited)         (Unaudited)           (Audited)
----------------------     -------------          ----------        ------------
ASSETS
Current assets
Cash and cash equivalents        7,459              26,974              34,834
Trade and
other receivables               11,008              38,378               5,954
----------------------     -------------          ----------        ------------
                                18,467              65,352              40,788
Investments
Investments                     49,887              26,820              43,306

Non-current assets
Exploration
and mining properties           86,101              47,219              60,228
----------------------     -------------          ----------        ------------
                               154,455             139,391             144,322
----------------------     -------------          ----------        ------------
LIABILITIES
Current liabilities
Trade and other payables         9,123                 695               2,635

Non-current liabilities          6,756               4,789               6,093

Convertible
redeemable loan notes                -              32,963                   -

Minority interests              12,385              13,496              12,858

SHAREHOLDERS' EQUITY
Share capital                    4,606               3,825               4,581
Reserves                       121,585              83,623             118,155
----------------------     -------------          ----------        ------------
                               126,191              87,448             122,736
----------------------     -------------          ----------        ------------
                               154,455             139,391             144,322
----------------------     -------------          ----------        ------------





CONSOLIDATED STATEMENT OF CASH FLOWS

-----------------------                  ----------    ----------     ----------
(US$000)                                 Six months    Six months  Twelve months
                                              ended         ended          ended
                                        31 December   31 December   30 June 2005
                                               2005          2004     
-----------------------                  ----------    ----------     ----------
                                        (Unaudited)   (Unaudited)      (Audited)
-----------------------                  ----------    ----------     ----------
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the period                       3,779         2,981          2,283

Adjustments for:

Depreciation                                   16            28             16
Profit on sale of assets                        -             -             (6)
Income attributable from
joint venture                              (4,521)       (4,168)        (6,437)
Loss on foreign exchange                        -             -             13
Stock-based compensation                      653             -              -
Debt for services
converted to shares                           504             -              -
Salaries and bonuses
converted to shares                            18            15             33
-----------------------                  ----------    ----------     ----------
Operating profit (loss)
before working capital changes                449        (1,144)        (4,098)
(Increase) decrease in
trade and other receivables                (4,952)        2,192          1,153
Increase in trade and
other payables                              7,151         2,982          6,226
-----------------------                  ----------    ----------     ----------
Cash generated from operations              2,648         4,030          3,281
-----------------------                  ----------    ----------     ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditure and financial
investment
Exploration and mining
properties expenditure                    (25,889)       (6,244)       (19,235)
Funding of joint
venture's capital expenditure              (4,363)         (856)        (8,852)
Acquisitions
Investments                                     -             -         (6,839)
-----------------------                  ----------    ----------     ----------
Net cash (used) in
investing activities                      (30,252)       (7,100)       (34,926)
-----------------------                  ----------    ----------     ----------

CASH FLOWS FROM FINANCING ACTIVITIES
Warrants and options exercised                229             -            146
Shares issued                                   -        24,503         60,792
-----------------------                  ----------    ----------     ----------
Net cash provided by
financing activities                          229        24,503         60,938
-----------------------                  ----------    ----------     ----------
Net (decrease) increase
in cash and cash equivalents              (27,375)       21,433         29,293
-----------------------                  ----------    ----------     ----------
Cash and cash equivalents
as at 1 July                               34,834         5,541          5,541
-----------------------                  ----------    ----------     ----------
Cash and cash equivalents
as at 31 December                           7,459        26,974         34,834
-----------------------                  ----------    ----------     ----------





STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

(US$000)                  Share       Capital  Accumulated    Total     Minority    Total
                        capital       reserve       profit             interests  
-------------           -------      --------      -------  -------   ---------- --------
Balance as at
1 July 2004               3,289        60,446      (4,416)   59,319       14,125   73,444
Shares issued               527        23,863           -    24,390            -   24,390
Warrants and
options exercised             9           105           -       114            -      114
Conversion of
directors'
remuneration
to shares                     -            15                    15            -       15
Profit for the period         -             -       3,610     3,610        (629)    2,981
-------------           -------      --------  ----------   -------     --------  -------

Balance as at
31 December 2004          3,825        84,429       (806)    87,448       13,496  100,944
-------------           -------      --------  ----------   -------     --------  -------

Shares issued               754        35,648           -    36,402            -   36,402
Warrants and             
options exercised             1            31           -        32            -       32
-------------           -------      --------  ----------   -------     --------  -------
Conversion of
directors'               
remuneration to shares        1            17           -        18            -       18
-------------           -------      --------  ----------   -------     --------  -------
Capital reserve
from revaluation of  
investments:
-------------           -------      --------  ----------   -------     --------  -------
Eurogold Limited              -        (1,383)          -    (1,383)           -   (1,383)
-------------           -------      --------  ----------   -------     --------  -------
Ovoca Resources plc           -           266           -       266            -      266
-------------           -------      --------  ----------   -------     --------  -------
On consolidation              -             4          85        89         (76)       13
-------------           -------      --------  ----------   -------     --------   -------
Profit for the period         -             -       (136)      (136)       (562)     (698)
-------------           -------      --------  ----------   -------     --------   -------



-------------           -------      --------   ----------   -------    --------   -------
Balance as at 1
July 2005                 4,581       119,012       (857)    122,736      12,858   135,594
-------------           -------      --------   ----------   -------    --------   -------
Warrants and
options                
exercised                    25           709            -       734           -       734
-------------           -------      --------   ----------   -------    --------   -------
Conversion of
directors'
remuneration            
to shares                   -              17            -        17           -        17
-------------           -------      --------   ----------   -------    --------   -------
Stock-based
compensation                -             653         (57)       596          57       653
-------------           -------      --------   ----------   -------    --------   -------
Stock-based
compensation
transferred to
deferred                
revenue expenditure         -             102            -       102           -       102
-------------           -------      --------   ----------   -------    --------   -------
Capital reserve
arising on          
revaluation of
investments:
-------------           -------      --------   ----------   -------    --------   -------
Eurogold Limited            -         (2,298)           -    (2,298)           -    (2,298)
-------------           -------      --------   ----------   -------    --------   -------
Ovoca Resources plc         -             (5)           -        (5)           -        (5)
Profit for the period       -              -         4,309     4,309        (530)     3,779
-------------           -------       --------   ----------   -------    --------   -------
Balance as at 31
December 2005            4,606        118,190        3,395   126,191      12,385    138,576
-------------           -------       --------   ----------   -------   --------    -------



NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS



1.  The unaudited Interim Consolidated Financial Statements, including
    comparatives, have been prepared in accordance with International Financial
    Reporting Standards ('IFRS'). Certain prior year amounts have been reclassified
    to conform to account presentation in the current period.


2.  These Interim Consolidated Financial Statements follow the same
    accounting policies and their methods of application as the 2005 accounts and
    should be read in conjunction with the Company's 2005 audited Consolidated
    Financial Statements.


3.  The interim financial information does not constitute statutory accounts
    as defined in Section 240 of the Companies Act 1985. Statutory accounts for the
    year ended 30 June 2005 have been filed with the Registrar of Companies.


4. The consolidated income statement includes Oxus Gold plc and its attributable
   shares of subsidiaries and joint ventures.


5. In accordance with the terms of IFRS2, the cost of stock based compensation,
   amounting to $653,000, has been expensed in the income statement during the
   period. This figure includes $180,000 relating to the prior year period.


6. The basic and diluted profit per share has been calculated by reference
   to a profit, after taxation, of $3,779,000 (December 2004: $2,981,000) (June
   2005: $2,283,000) and the weighted average number of ordinary shares in issue of
   287,432,807 (December 2004: 224,048,919) (June 2005: 248,790,894).


Diluted earnings per share is based on the weighted average number of shares in
issue for the period plus potential dilutive ordinary shares arising from share
options and warrants for the period of 292,140,689 (December 2004: 228,479,082)
(June 2005: 253,401,202).


 7. The Directors are not declaring a dividend for this period.


 8. Copies of this report are being sent to all shareholders. Additional copies
    will be available to the public at the registered office, 105 Piccadilly,
    London, W1J 7NJ and will be posted on the company's website at
    www.oxusgold.co.uk






CORPORATE DETAILS


Company             Oxus Gold plc
                    105 Piccadilly, London, W1J 7NJ, United Kingdom

Phone:              +44 (0)207 907 2000 Fax: +44 (0)207 907 2001

Email:              oxus@oxusgold.co.uk Web: www.oxusgold.co.uk


Board of Directors: Douglas Sutherland Non-executive Director
                    William Trew Chief Executive Officer
                    Richard Wilkins Executive Director
                    Jonathan Kipps Finance Director
                    Oliver Prior Non-executive Director
                    Gordon Wylie Non-executive Director
                    Darryl Norton Alternate Director
                    Company Secretary: Richard Wilkins


Nominated Advisor   Canaccord Capital (Europe) Limited
And Broker:         1st Floor Brooke House, 27 Upper Brook Street
                    London W1K 7QF, United Kingdom
Phone:              +44 (0)207 518 2777


Auditors:           BDO (Isle of Man)
                    9 Myrtle Street, Douglas, Isle of Man, IM1 1ED, British Isles


Registrars:         Capita Registrars
                    The Registry, 34 Beckenham Road, Beckenham,
                    Kent, BR3 4TU, United Kingdom


For further information please visit www.oxusgold.co.uk or contact:

OXUS GOLD PLC

Jonathan Kipps - Finance Director          Tel: +44 (0) 207 907 2000
Joanna Solino - Investor Relations Officer Tel: +44 (0) 207 907 2005


Bankside Consultants

Keith Irons                                Tel: +44 (0) 207 367 8888
Oliver Winters



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