Jerooy Licence

21 Jul 2006 16:06

Oxus Gold PLC21 July 2006 LONDON: Oxus Gold plc ('Oxus' or 'the Company'), ('OXS.L') became aware late yesterday that a group known in Kyrgyzstan as "Jerooy Altyn" is claiming to have been awarded the licence for the Jerooy gold deposit by the Kyrgyz State Agency of Geology and Mineral Resources. Neither the Kyrgyz Government nor the State Agency of Geology and Mineral Resources has informed Oxus of such a move. If the licence has been awarded to this group then Oxus believes that: 1. The grant of this license was done in contempt of a local Bishkek court ruling that prevented Kyrgyzaltyn from pursuing its discussions with a "second investor". 2. This was also in direct contravention of an Order by the Kyrgyz Parliament issued on 29 May 2006, instructing the Government to rescind any agreements made with Jerooy Alten and its j.v. partner Global G.o.l.d Holding GmBH. 3. Oxus has presented revised proposals, which have enhanced economics for the Kyrgyz Government. These include a 50/50 joint venture with Oxus management control, larger contributions to the Talas Development Fund and a commitment to pour gold within 6 months. 4. The Kyrgyz Government had confirmed that it would fully consider Oxus's proposals. 5. Oxus notified the Krygz government of its choice of arbitrator under international arbitration laws, however, Oxus has not received any response despite the passing of the 30 day time limit. 6. Oxus has reserved all its legal rights and is continually reviewing its legal options. Ends. Further enquiries: Oxus Gold plc Tel: + 44 (0)20 7907 2000Richard Wilkins, Company Secretary This information is provided by RNS The company news service from the London Stock Exchange