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Oxus Mining Plc (OXS)

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Monday 12 May, 2003

Oxus Mining Plc

Jerooy Licence Reinstated

Oxus Mining Plc
12 May 2003

Oxus Mining plc

Jerooy Licence Reinstated

Oxus Mining plc (OXS.L) ('Oxus') is pleased to announce, that following
successful negotiations with the Government of Kyrgyzstan and Oxus' partner JSC
'Kyrgyzaltyn', that the Licence to develop the Jerooy Gold Deposit in the Talas
Region of Kyrgyzstan, has now been reinstated. The Licence Agreement was signed
in Bishkek on 7 May 2003.

The Jerooy Gold Project has a total resource of 3.45 million ounces.

Oxus' subsidiary company Norox Mining Company Limited ('Norox') has already
resumed work on the Feasibility Study, which was at an advanced stage of
completion when the licence was annulled last year. The Feasibility Study is now
due for completion by September 2003. Oxus is fully committed to proceed with
the fastest possible development of the mine, and intends to commence gold
production by mid 2005.

The Feasibility Study is considering development of the mine, concurrently by
open pit and underground methods, based on the following provisional reserves :

   Provisional reserve    Reserve M tonnes    Average grade g/t    Contained gold M ounces  
       Open pit                     4.04                 4.9                     0.64           
       Underground                  5.84                 9.3                     1.75           
       Total                        9.88                 7.5                     2.38    

Testwork has demonstrated that the Jerooy ore is non-refractory and free
milling, and will be processed using a conventional crushing, milling and
carbon-in-pulp circuit.  It is estimated that the recovery of gold will be in
excess of 90%.

At a production rate of 850,000 tonnes per year, Jerooy will produce on average
over 180,000 ounces gold per year, of which 110,000 ounces are attributable to

The cash cost of production is expected to be around $US 133 per ounce over the
12 year life of mine.

12 May 2003


Oxus Mining plc                            Tel: +44 (0)1483 714411
John Donald, COO                   Email: [email protected]

Brown Shipley Corporate Finance            Tel: 44 (0)20 7606 9833
Bill Staple

Further information can be obtained by visiting the Company's website:


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

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