TSG.L Regulatory News (TSG)

Trans-Siberian Gold plc

Asacha mining and production update

LONDON: 29 October 2012 - Trans-Siberian Gold plc ("TSG" or the "Company") (TSG.L) reports that mine development activities at Asacha in the third quarter of 2012 comprised approximately 1,090 metres, while ore extraction (including ore from stoping and mine development) amounted to 26,644 mt.

In the same period, an average 12,414 mt per month was processed by the Asacha plant (99.3% of the production level envisaged in the plant's design documentation).

Mining and production at Asacha in the first nine months of 2012 is shown in the following table.

TSG reported on 27 September 2012 that the breakdown of some underground equipmenthad reduced the amount of stoping ore which could be delivered to the plant in the second half of the third quarter, necessitating blending the mined ore with lower grade ore from the surface ore stockpile. This problem continued into October, although all necessary spare parts have now been delivered to site. A new underground truck is expected to arrive in Kamchatka by the end of October. Its delivery to Asacha depends on road conditions and is expected in late November, at which time we also expect the arrival of a new underground loader.

As a consequence of the mining production problems in September and October, TSG now expects 2012 production of around 27,000 oz gold, compared to the previous estimate of 31,000 oz.

The Company is also taking steps to strengthen the mine's management team with the appointment of two new underground mining engineers and a mining geologist. It also intends to recruit a technical director for Asacha.

TSG will report Asacha's fourth quarter 2012 gold production in January 2013.

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