TSG.L Regulatory News (TSG)

Trans-Siberian Gold plc

Asacha mining and production update

LONDON: 21 January 2014 - Trans-Siberian Gold plc ("TSG" or the "Company") (TSG.L) reports that mine development at Asacha in the fourth quarter of 2013 comprised approximately 730 metres, while ore extraction (including ore from stoping and mine development) amounted to 53,651 metric tonnes, the highest quarterly total to date. In the same period, 42,391 mt was processed through the Asacha plant, also the highest quarterly total to date and approximately 13% above the plant's nominal capacity.

During the period dilution continued to affect the grade of ore delivered to the plant, however the previously reported measures to reduce dilution, including changes to mine development and stoping methods, are expected to lead to significantly higher grades from the recently developed areas to be mined in 2014.

Mining and production at Asacha in 2013 is shown in the following table.

TSG intends to report Asacha's first quarter 2014 production in April 2014.

On 30 September 2013 TSG reported that it had been agreed with Sberbank that a gold price hedge programme would be implemented for the revised five year term of the bank's loan facilities, with gold price protection for the initial 12 month period to be put in place by 1 November 2013. It was subsequently agreed with the bank to defer the start of the price protection programme with an amendment to the interest rate until such commencement at an annual cost of approximately US$250,000. Discussions continue with the bank and a further announcement will be made in due course.

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