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Oxus Gold PLC (OXS)

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Tuesday 01 March, 2005

Oxus Gold PLC

Agreement silver-gold deposit

Oxus Gold PLC
1 March 2005

news release

For immediate release: 1 March 2005

                                 Oxus Gold plc

        Co-operation agreement on Kosmanachi silver-gold deposit signed

LONDON: 1 March 2005 - Oxus Gold plc ('Oxus' or 'the Company') is pleased to
announce that it has signed a co-operation agreement with the Navoi Mining and
Metallurgical Combinat of Uzbekistan to work together with a view to developing
the Kosmanachi silver/gold deposit situated near the Company's Amantaytau gold
mine, in central Uzbekistan.

Kosmanachi has been extensively explored over the past two decades and is
estimated to contain Soviet classified C1 and C2 Resources of at least 40
million ounces of silver at an average grade of 105 grammes/tonne and 270,000
ounces of gold at an average grade of 0.5 grammes/tonne.

Oxus intends to carry out a detailed review of all the existing data and to
undertake a drilling programme to confirm the earlier exploration results in
order to complete a pre-feasibility study.  Assuming favourable economics, a
formal agreement will be completed reflecting the appropriate legal form of
co-operation in order that full feasibility can be completed and plant
construction may be commenced in the shortest possible time. Test work to date
indicates that a heap leach plant would recover in excess of 70% of the silver
and gold.  The mine is situated within 20 kms of the Company's existing
operations and therefore minimal infrastructure will be required.

Resignation of Non-executive Director

The Company also announces that Dan Kappes is retiring as a non-executive
director with immediate effect. Bill Trew, CEO of Oxus said 'Dan has played a
valuable role with the Company over the last two years.  However, as President
of Kappes Cassiday & Associates, and with the recent increase in activity within
the mining industry generally, he feels that he must now concentrate on his main
business interests. I would like to thank him for his contribution and wish him
well for the future.'

Announcements regarding new appointments to the board will be made in due


For further information, please contact:

Bill Trew, CEO Oxus Gold,                     +44 (0)20 7907 2000

Richard Wilkins, Director and Secretary       +44 (0)20 7907 2000

Keith Irons, Bankside Consultants             +44 (0)20 7444 4155 /07885 356 639

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

a d v e r t i s e m e n t