Disposal of Tungsten Assets

RNS Number:7571A
Avocet Mining PLC
05 September 2002


AVOCET TO SELL REMAINING TUNGSTEN ASSETS TO SALISH VENTURES, A CANADIAN LISTED
CORPORATION



Avocet Mining PLC ("Avocet") and Salish Ventures Inc. ("Salish") have today
signed a Memorandum of Understanding whereby Salish will take control of all
Avocet's remaining tungsten assets in exchange for Avocet receiving just under
50% of the issued share capital of Salish.

Avocet has recently stated its intention of becoming a focused gold mining
company with the objective of reaching at least 300,000 ozs. of annual gold
production within the next three years.  Therefore Avocet has been seeking a
satisfactory divestment of its remaining tungsten interests.  These interests
primarily include the Panasqueira tungsten mine in Portugal, owned by Avocet's
wholly owned Portuguese subsidiary, Beralt Tin & Wolfram, and a 10.6% interest
in the Lermontov mine, located in the Russian Far East.

Salish, listed on the TSX Venture Exchange in Canada as a capital pool company,
has been looking for a suitable opportunity in the mining business for some
time.  Salish management, which has extensive experience in the mining business,
together with previous experience in the tungsten industry, believes that the
purchase of Avocet's tungsten interests is the first step to creating a
profitable, diversified mining company.

Combined with an equity position in Salish, Avocet will maintain a US$2.5
million loan owed to it by Beralt.  This loan will be repaid to an extent that
tungsten market prices exceed US$70 per metric tonne unit (mtu).  Although
tungsten concentrate prices are currently quoted by the Metal Bulletin as
US$32-45/mtu, Beralt has sales contracts that cover its cash production costs.
Avocet has agreed to make available a working capital facility to Beralt of
US$500,000 until 31 December 2003.  Avocet will maintain its post closure
obligations towards the Bishop property in California.

The structure of the transaction is such that it allows Avocet to withdraw from
the day to day operation of Beralt in order to concentrate on its gold business
while at the same time providing an opportunity to benefit from any upside
should market conditions for tungsten improve. Recent events, including the
announcement from China (which accounts for over 80% of world primary tungsten
production) that it intends to limit tungsten ore mining through the closure of
unauthorised mines and processing plants could revitalise ailing tungsten
prices.

Avocet is a mining company listed on the Alternative Investment Market (AIM) of
the London Stock Exchange.  The company's principal activities are gold mining
and exploration in Malaysia, where its owns and operates the country's largest
gold mine at Penjom, and in Indonesia, where it has an advanced stage gold
exploration property in North Sulawesi, currently at the pre-feasibility stage.
The company is also pursuing a number of other opportunities to enhance its gold
mining and exploration portfolio in Asia.  These include the recent announcement
of the intended acquisition of operating assets in the Republic of Tajikistan.

________________________________________________________________________________


For further information please contact:

Avocet Mining PLC                                          4C Communications Ltd
John Catchpole (Chief Executive and Finance Director)      Carina Corbett
Jonathan Henry (Executive Vice President)                  020 8949 7171
020 7907 9000                                              020 7907 4761
www.avocet.co.uk


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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