AGF Project Finance

8 May 2008 12:45

Oxus Gold PLC08 May 2008 OXUS GOLD PLC Mandate Letter to Finance AGF Underground Mine Signed LONDON: 8 May 2008 - Oxus Gold plc ("Oxus" or the "Company") (OXS.L) is pleasedto announce that it has mandated The Royal Bank of Scotland ("RBS") to arrange alimited recourse senior debt facility of approximately $150 million (the"Facility") on behalf of Amantaytau Goldfields ("AGF"). The Facility will beused to enable AGF to develop its Phase 2 underground sulphides project. The final amount of the Facility will be determined by a bankable feasibilitystudy currently being updated by Wardell Armstrong International and scheduledfor completion by the end of May 2008. First drawdown on the Facility by AGF issubject to the standard conditions precedent and is currently expected to occurby November 2008, and first production from the underground mine is currentlyforecast for Q3 2009. Richard Wilkins, CEO of Oxus, commented: "I am delighted that we have been ableto attract a bank of RBS's international standing to arrange this projectfinancing on behalf of AGF. The underground sulphides project will transformOxus in terms of attributable gold production and related profitability. RBSwill also be able to draw on its considerable experience within Uzbekistanarising from the recent acquisition of ABN AMRO and its local representation inUzbekistan, which is a joint venture between ABN AMRO, the European Bank forReconstruction and Development, the International Finance Corporation, and theNational Bank for Foreign Economic Activity of the Republic of Uzbekistan. As Ihave stated previously, the underground sulphides project is the reason why Oxusinvested in AGF in the first place, and we look forward to proceeding with itsdevelopment without delay." OXUS GOLD PLC Tel: +44 (0) 207 907 2000 Jonathan Kipps - Finance DirectorRichard Wilkins - Chief Executive Officer CANACCORD ADAMS LIMITED Tel: +44 (0) 207 050 6500 Mike JonesRobin Birchall BANKSIDE CONSULTANTS Tel: +44 (0) 207 367 8888 Keith IronsOliver Winters This information is provided by RNS The company news service from the London Stock Exchange