Oxus Gold Plc Regulatory News (OXS)

11 Sep 2006 13:18

Oxus Gold PLC11 September 2006 news release For release at 13.00 hours, 11 September 2006 Oxus seeks order from Arbitration tribunal to protect investment Claims against Kyrgyz Government LONDON: 11 September 2006 - Oxus Gold plc ("Oxus") reports today that it isseeking an immediate order under the UNCITRAL arbitration rules to protect Oxus'investments in Kyrgyzstan, following the government-sponsored illegal occupationlast Thursday of premises owned by Talas Gold Mining Company, Oxus' jointventure company at Jerooy. Last Thursday, in direct contravention of the United Kingdom-Kyrgyz RepublicBilateral Investment Treaty and Kyrgyz law, local police and representatives ofJerooyaltyn, acting under the instructions of the Vice Governor (Mr Murataliev)of the Talas region of Kyrgyzstan, forcibly occupied warehouse and accommodationproperties, owned by Oxus, and ejected the residents and other Oxus staff atshort notice. Jerooyaltyn has also stopped access to Oxus' plant, although theplant itself has not been occupied. Representatives of Jerooyaltyn, a recently created joint venture betweenKyrgyzaltyn and Global G.o.l.d, took possession of the administration buildings,the warehouse and the accommodation buildings at Jerooy, and placed guardsoutside the plant. Oxus has submitted an urgent request to the UNICTRAL Arbitration Tribunal,hearing Oxus' claim against the Kyrgyz Government, requesting an immediate orderunder the UNCITRAL Arbitration Rules, which would require the Kyrgyz Governmentto provide full protection and security of the plant and associated buildingsand equipment at Jerooy for the benefit of Oxus. In addition, it should allowOxus unrestricted access and possession of the plant and buildings. Bill Trew, Chief Executive of Oxus Gold, said today: "The plant and associatedbuildings at Jerooy are all owned by companies in the Oxus Group and are on landto which Talas Gold Mining Company, our joint-venture company, has legalpossession. This land is also outside the area of land allocated to Jerooyaltynby the recent, and wholly unlawful, license dated 23 May 2006. "This is an egregious breach by the Kyrgyz Government of the UK-Kyrgyz RepublicBilateral Investment Treaty under which Oxus has the right to "enjoy fullprotection and security" from the Government for its property and operations inthe country. Yet, Jerooyaltyn, with the approval of the Vice Governor of theTalas region, and with the assistance of the local police, has forcibly takenphysical control of Oxus's investment at Jerooy and intimidated the company'spersonnel. The Kyrgyz Republic should respect the rule of law both in respectof its own law and international treaty obligations. "The UK Government and the Kyrgyz Government jointly entered into this BilateralInvestment Treaty and, as a British Company, we would expect our government tolend its full support to Oxus in its pursuit of its legal rights. We haveapplied to the UNCITRAL arbitration panel to issue an immediate order to theKyrgyz Government," said Mr Trew. Enquiries: Bill Trew, CEO Oxus Gold: Tel: +44 (0)20 7907 2000Keith Irons, Bankside: Tel: +44 (0)20 7367 8873 / 07885 356 639Oliver Winters, Bankside: Tel: +44 (0)20 7367 8874 / 07811 168 822 This information is provided by RNS The company news service from the London Stock Exchange