Oxus Gold Plc Regulatory News (OXS)

12 Jul 2006 16:08

Oxus Gold PLC12 July 2006 Oxus Gold plc Statement re: Eurogold Limited LONDON: 12 July 2006 - Oxus Gold plc ("Oxus" or "the Company"), ("OXS.L") notes that Eurogold Limited ("Eurogold") acknowledged, in an announcement released on 11 July 2006, Oxus's concerns over the classification of certain elements of the ore resources at its Saulyak property in Ukraine. Oxus was forced to terminate its purchase agreement with Eurogold because Oxusbelieves that a material adverse change had occurred to the business and assetsof Eurogold (Bermuda) Limited (a subsidiary of Eurogold Limited) from what itunderstood to be the position when it entered into the agreement. Oxus would like to clarify that after signing the agreement a number ofsignificant matters became apparent, including, but not limited to, the factthat the number of C1/C2 reserve ounces actually approved by the Government ofUkraine were significantly lower than the 578,000 oz figure that Oxus understoodto be the approved amount. In the announcement published yesterday, Eurogold confirmed that only a portionof the C1/C2 reserves had been fully approved; they stated "Eurogold remainsconfident that the Central Planning Committee in Kiev will ultimately approve aC1/C2 ore "reserve" broadly in line with the 580,000 oz estimate of the RegionalExpedition". Eurogold also said that it intends to pursue a legal claim against Oxus. Oxusbelieves that any such claim has no validity and will vigorously defend itsposition. Ends For further information, please contact: Oxus Gold plcRichard Wilkins, Company Secretary Tel: + 44 (0)20 7907 2000 Bankside Consultants Ltd.Keith Irons/Oliver Winters Tel: + 44 (0)20 7367 8873 This information is provided by RNS The company news service from the London Stock Exchange