Asacha project update

Trans-Siberian Gold plc

Asacha project update

London: 15 December 2010 - Trans-Siberian Gold plc ("TSG" or "the Company") (TSG.L) reports on the progress of construction at the Asacha site.

Underground mine development is continuing as scheduled. During the 11 months ended 30 November 2010 mine development and preparation works, by-product extraction and exploration works amounted to more than 1,450 metres and more than 15,000 m3. Ore mined during mine development activities in this period totalled about 18,700 tonnes; including the adit ore and the pre-production ore mined in the previous periods the ore stockpile at 30 November 2010 consisted of more than 58,000 tonnes. The 2011 Mining Plan, which includes the start of extraction works, was approved by Rostechnadzor, the Federal agency responsible for industrial and environmental safety, on 16 November 2010.

Roofing and covering of the plant building with wall panels is almost complete. The technical team from the manufacturer of the major plant equipment is on site to supervise its installation. Mounting of ventilation equipment is in progress and contractors have started the installation of pipework, electrical equipment and plant lighting.

As previously reported, work on the tailings storage facility was affected by exceptional rainfall during the summer. The additional labour and equipment focused on this area to ensure completion of soil removal during early autumn has resulted in significant progress, which has allowed the contractor to start laying the facility's geomembrane. To date about 50 per cent. of the area has been covered and construction of the technological pipelines is scheduled for the first quarter of 2011.

The work on the camp boiler unit and heating has been completed. Fuel and water tanks have been assembled and their respective piping arrangements are now under way. The cyanide storage facility is finished and is being prepared for commissioning. Construction of the other infrastructure objects is still under way, including the repair shop, sewage treatment facility, settling pond and intra-site networks for water, heat, power supply and sewage.

In spite of the progress achieved, we believe that several factors will delay the commencement of gold production, previously anticipated to be during the first quarter of 2011:

- delay in the manufacture and delivery of high-voltage cables and some other electrical equipment, pumps for the fire station and sewage treatment;

- additional design works required for early commissioning of the cyanide and fuel storage facilities in accordance with regional and local regulations; and

- the early onset of winter snow has and will continue to hamper progress.

Having considered the likely impact of these factors on the pace of the construction process, the Directors now expect that an additional 3 to 4 months will be required to complete the plant, on which basis gold production at Asacha is expected to commence around mid-year 2011. The Directors intend to provide shareholders with more frequent and broadly monthly updates on further progress made at Asacha during the remaining period of construction.

Ends

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