Oxus Gold Plc Regulatory News (OXS)

3 March 2014

Oxus Gold plc

Conversion of CLNs and Issue of Equity

Oxus Gold PLC ("Oxus" or the "Company") is pleased to announce that Sturgeon Central Asia Balanced Fund Ltd ("Sturgeon"), the holder of a total of $1 million of convertible loan notes ("CLNs") in the Company, has converted the CLNs into ordinary shares of 1p each in the Company ("Ordinary Shares").

Sturgeon Capital Ltd is an independent investment manager focused on the Central Asian markets since 2006. It manages three dedicated Central Asia investment funds, including the Sturgeon Central Asia Balanced Fund Ltd.

5,208,333 Ordinary Shares have been issued to Sturgeon pursuant to the conversion of all of its outstanding CLNs in the Company at a price of 12p per share. The terms of such CLNs were revised in January 2010 and the revised terms were announced by the Company on 28 January 2010.

In addition, 1,854,427 Ordinary Shares have been issued to Sturgeon in lieu of the accrued interest attributable to the converted CLNs for the period 6 January 2012 to 28 February 2014. These shares were issued at a price of 2.73p per share, being the average closing mid-market share price for the Company for the period 6 January 2012 to 28 February 2014.

Richard Shead, Chairman of Oxus commented:

"We are delighted that Sturgeon has decided to convert its entire holding of CLNs into shares in the Company. Not only does this improve the Company's financial position, but we also believe this demonstrates Sturgeon's belief in the Company during the ongoing arbitration process, which the Directors of the Company believe will return substantial value to all stakeholders".

Application has been made for a total of 7,062,760 new Ordinary Shares to be admitted to trading on the AIM Market of the London Stock Exchange. The new Ordinary Shares will rank pari passu with existing Ordinary Shares and dealings are expected to commence in the new ordinary shares on 7 March 2014.

Following the issue of ordinary shares as set out above, the Company's issued share capital now consists of 494,152,692 ordinary shares of 1p each, none of which are held in treasury. Therefore, the total number of voting rights in the Company is 494,152,692.

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