Amantaytau Goldfields Update

2 Nov 2006 14:01

Oxus Gold PLC02 November 2006 Oxus Gold plc AMANTAYTAU GOLDFIELDS UPDATE LONDON 2 November 2006: Oxus Gold plc ("Oxus" or the "Company") (OXS.L) reportsthat it has received assurances from its Uzbek partners in its AmantaytauGoldfields (AGF) joint venture that the Government of the Republic of Uzbekistanis not targeting AGF for expropriation. Despite widespread speculation and numerous media reports to the contrary, at aSupervisory Board meeting of AGF held in Tashkent on 30 October 2006, therepresentatives of the Uzbek partners in the joint venture strongly rejected anyallegation that the Uzbek Government was using a recent tax audit as an excuseto expropriate the assets of AGF. The Uzbek members of the Supervisory Board, representing the Ministry ofFinance, the State Committee for Geology & Mineral Resources, and the NavoiMining & Metallurgical Combinat confirmed that they supported the continuationof the AGF joint venture and that they would render any assistance possible toenable AGF to follow the appropriate judicial procedure and appeal to a higherlevel court a recent judgment handed down against the joint venture by aprovincial court. AGF is owned 50% by Oxus Gold and 50% by the Uzbek State. On 27 October 2006 theNavoi Regional Economic Court issued a ruling, effective after 30 days, againstthe joint venture claiming some $224 million in taxes, fines and penalties. AGFis appealing the ruling and, with the support of its Uzbek partners, is hopefulthat the majority of the claim will be overturned by a higher level court. As the foreign investor in the joint venture Oxus welcomes the support of itsUzbek partners in this matter and notes that the Uzbek partners have authorisedthe release of this update. Further enquiries: Oxus Gold plc Tel: + 44 (0)20 7907 2000Richard Wilkins, Company Secretary Bankside Tel: + 44 (0)20 7367 8873Keith IronsOliver Winters This information is provided by RNS The company news service from the London Stock Exchange