TSG.L Regulatory News (TSG)

18 Oct 2006 13:00

Trans-Siberian Gold PLC18 October 2006 Trans-Siberian Gold plc AGM Statement London: 18 October 2006 - Trans Siberian Gold plc ("TSG" or "the Company")reports that at the Annual General Meeting held today Mr Peter Burnell,Chairman, made the following statement to shareholders: "TSG has had to overcome a number of significant challenges during the lasttwelve months. However, the recent appointment of Oleg Bagirov as ChiefExecutive and the potential consolidation of the Company's operations in FarEast Russia represent a substantial step change in the Company's efforts tobecome a profitable gold producer by 2008. The proposed sale of the Company's projects at Veduga and Bogunay, together withthe US$50 million project financing facility from Standard Bank, will providethe Company with the necessary funding for the development of Asacha without thefurther dilution of existing Shareholders. This represents a highly positivemilestone in the Company's objective of bringing the Asacha mine into productionby 2008. The transaction with AngloGold Ashanti Limited ("AGA") is proceedingnormally and we will make a further announcement in due course. We are pleased to have the continued strong support of AGA and their technicalexpertise and assistance on Asacha. We have also received significant backing ata local level from our major shareholder, UFG Private Equity Fund ("UFG"), whoseknowledge and contacts within Russia have proved invaluable and through whom theCompany is considering purchasing a stake in its Kamchatka based explorationsubsidiary Sigma. Whilst this transaction is subject to further in-depth duediligence and agreement on relative values, your board believes the combinationof interests envisaged by the transaction may provide an attractive prospect forthe future development of the Company's interests in Kamchatka beyond the Asachaproject. Subject to a satisfactory resolution of the above conditions, theCompany expects to be able to submit proposals to shareholders in respect of theSigma acquisition within the next three months. With the removal of the funding risk for Asacha, the continued support of AGA,the backing of a major, local partner and the potential expansion in theKamchatka province, the board believes the recent decline in the share pricedoes not reflect the true valuation and potential of the Company. It is worthnoting that the current share price puts a market value on the Company of lessthan our cash resources following the completion of the AngloGold transaction.The Company is on a much more secure footing than it has been for some time." All the resolutions for consideration at the AGM were approved by shareholdersapart from the resolution to re-elect Jocelyn Waller, which was withdrawn. Ends Contacts: TSGPeter Burnell +44 (0) 1434 632 292Simon Olsen +44 (0) 1223 265 760/07770 484 965 Seymour PierceStuart Lane +44 (0) 207 107 8000 BanksideKeith Irons +44 (0) 20 7367 8873Oliver Winters +44 (0) 20 7367 8874 This information is provided by RNS The company news service from the London Stock Exchange