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Oxus Gold PLC (OXS)

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Tuesday 19 February, 2008

Oxus Gold PLC

Eurogold Settlement

Oxus Gold PLC
19 February 2008



                                 OXUS GOLD PLC

                              Eurogold Settlement


LONDON: 19 February 2008 - Oxus Gold plc ('Oxus' or the 'Company') announces
that further to its announcement on 24 August 2006, it has reached agreement
with Eurogold Limited ('Eurogold') and its wholly owned subsidiary Eurogold
Holdings ('Bermuda') Limited ('EHBL') to settle the proceedings commenced in
2006 by Eurogold and EHBL.


The proceedings were commenced following Oxus' decision to terminate its
purchase agreement with Eurogold for its Ukrainian gold assets. As previously
disclosed, Oxus believed, at termination, that a material adverse change had
occurred to the business and assets of EHBL from what it understood the position
to be when it entered into the agreement.


Richard Wilkins, Chief Executive of Oxus Gold, commented: 'Without accepting any
liability, Oxus believes it is in the best interest of shareholders to settle
the dispute at this time. This will enable the Company to focus all of its
resources on its core assets and capitalise on recent encouraging progress made
by the Company, as demonstrated by the receipt of formal approval by the
Government of Uzbekistan to proceed with the AGF phase 2 underground sulphide
project, as previously announced on 6 December 2007, and which is expected to
increase AGF's total production to over 300,000 ounces per annum within three
years.


Weighed against the potential time, costs and disruptions of contesting a court
case in Australia, coupled with the likelihood of limited recovery of
significant costs in the event of a favourable court decision, Oxus firmly
believes management time should be focussed on utilising its experience and
expertise to enable the Company to bring the sulphides project into production
as soon as possible.'



Under the terms of the settlement , Oxus has agreed to pay Eurogold A$7.95m of
which approximately A$6.78m will be cash and the balance of approximately
A$1.17m will be met through the issue of 1,904,297 Oxus shares, delivered to
Eurogold on or before 21 May 2008. The cash component consists of A$5.06m
payable on or before 31 March 2008 and A$1.72m pursuant to the sale of the
Company's entire shareholding in Eurogold of 43,188,100 shares. Oxus confirms
that on 18 February 2008, it sold these shares at a price of A$0.04 per share,
realising approximately A$1.72m, which will be paid to Eurogold on or before 6
May 2008.


Oxus confirms US$6.474m will be provided in the Interim Accounts to 31 December
2007 in respect of this settlement.



Contacts:

Oxus Gold plc
Richard Wilkins                     Tel: +44 (0)20 7907 2000
Jonathan Kipps

Canaccord Adams Limited
Mike Jones
Robin Birchall                      Tel: +44 (0)20 7050 6500

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




                      This information is provided by RNS
            The company news service from the London Stock Exchange