Oxus Gold Plc Regulatory News (OXS)

Oxus Gold PLC

18 September 2012

Update on Arbitration Proceedings

Oxus Gold plc ("Oxus" or the "Company") refers to the ongoing UNCITRAL international arbitration proceedings commenced by Oxus against the Government of Uzbekistan ("Respondent") on August 31, 2011, in relation to the expropriation of the Company's investments in Amantaytau Goldfields ("AGF") and the Khandiza deposit, as described in RNS Number 3270N dated 31 August 2011.

Claimant's Statement of Claim

On September 17, 2012, the Company submitted its Statement of Claim.

The Statement of Claim is accompanied by an independent quantum report prepared by accounting expert, Ernst & Young, and an expert opinion on valuation by Wardell Armstrong International, quantifying the losses to Oxus as a result of Respondent's various breaches of the bilateral investment treaty concluded between the United Kingdom and Uzbekistan on November 24, 1993 (the "BIT").

In respect of the Company's Khandiza investment, Ernst & Young has assessed Oxus's losses on alternative scenarios, on the basis of alternative dates of quantification (i.e. the date of the ultimate award and alternatively the date of expropriation), and on the basis of alternative investment structures (i.e. a concession agreement and alternatively a joint venture).

In respect of the Company's investment in AGF, Ernst & Young has carried out a similar assessment of Oxus's losses based on scenarios contemplating alternative dates of quantification, and on the basis of different acts of creeping expropriation amounting to breaches of the BIT.

On the basis of these different alternatives and these two investments, Ernst & Young has quantified the losses to the Company in respect of the AGF investment within a certain range, which Oxus cannot disclose as a result of its confidentiality obligations in the arbitration.

 Calendar

A procedural calendar for the remainder of the arbitration proceedings is being discussed. Confidentiality obligations of the arbitration do not allow Oxus to disclose the calendar once agreed or ordered.

Stay of UK Proceedings

As described in RNS Number 3969E, on July 21, 2011, the Ministry of Finance of the Republic of Uzbekistan initiated proceedings before the English High Court to enforce a judgment obtained in the Uzbek Courts ordering payment from the Company of USD 10.84 million constituting the AGF Phase 2 Project Development Fund.

The parties have agreed that all proceedings in this UK court action will be stayed until after the Arbitral Tribunal has rendered its final award in the UNCITRAL arbitration proceedings, or the arbitration is finally discontinued or disposed of.

Shareholders will continue to be advised of any further material developments in respect of the arbitration as and when they occur subject to confidentiality obligations of Oxus in relation to the arbitration, which includes the obligation not to disclose the parties' pleadings, the timetable as well as any directions and orders of the Tribunal.

Richard Shead, Chairman commented:

"I confirm that the very detailed claim for compensation for the expropriation of the mineral assets at both AGF and Khandiza was filed with the Arbitral Panel yesterday.

Whilst for the reasons set out in the RNS I am not at liberty to disclose the value of the claim submitted I can assure shareholders that the work undertaken by the expert independent valuators has derived a scale of values which supports the value placed on the assets by Oxus.

I hope we can now move the process forward to ensure shareholders are appropriately compensated in the shortest possible time."

For further information on Oxus Gold PLC visit www.oxusgold.co.uk or contact the following: