Acquisition

RNS Number:6509M
Oxus Gold PLC
24 November 2006



news release

For immediate release - Friday, 24 November 2006



                               OXUS GOLD PLC



Oxus Gold and KazakhGold in successful joint venture bid for Romanian gold plant
                           and exploration properties



LONDON: 24 November 2006 - Oxus Gold plc ("Oxus" or the "Company") announces
that, together with KazakhGold Group Limited ("KazakhGold"), it has formed a new
50:50 joint venture, Romaltyn, which has successfully bid in open auction to
acquire the assets of a gold project in Romania that were placed in liquidation
in April, 2005.



Oxus and KazakhGold jointly bid US$6.99 million, including US$1.12m VAT, for the
assets which include a 2.5m tpa gold treatment plant, formerly operated by
Transgold, a 50:50 joint venture company between Eurogold Limited of Australia
and Remin, the Romanian state mining company.  The plant, which ceased operating
in 2005, is located on the outskirts of the town of Baia Mare. Other assets
acquired are the 8.5m tonnes Central Tailings dump located 7.8km from the plant,
together with stockpiled gold-bearing pyrite resources and two exploration
tenements, Sophia and June 11, over which 12-month exploration licences will be
re-instated.



Once the plant is recommissioned by Romaltyn, in approximately six months time,
the project offers the potential to generate rapid payback on investment and
provides an opportunity for exploration and development of additional resources
in the area.



In a second auction, the two companies paid US$300,000 for Explorer SA, a
company in voluntary liquidation which holds three further exploration tenements
in the area, the largest of which, Rascau South East, has a three-year
exploration licence.



The Transgold plant was designed and built by Lycopodium for US$28m and has an
estimated replacement cost of around US$40m.  The JV estimates that it can be
brought back into production after expenditure of approximately US$5.25m on
clean-up, minor repairs and the replacement of some equipment. Thus the total
financial commitment by the joint venture is estimated to be US$12.54m.



Once recommissioned, the plant would treat approximately 2m tonnes of tailings
in the first year, producing approximately 30,000 ounces of gold at an average
recoverable gold grade of 0.48g/t.



The auction process on behalf of the joint bidders was led by John Cutler, chief
executive of MAED Ltd, the international engineering group specialising in the
design, construction and operation of process plants for a broad spectrum of
metals.  MAED will be leading the rehabilitation and recommissioning of the
Transgold plant before stepping back and handing over the project to the joint
venture management team



Oxus has long been interested in acquiring the Baia Mare plant and decided to
bid for the Transgold assets in a joint venture with KazakhGold as part of a
developing strategy to operate in eastern Europe and central Asia with joint
ventures in order to spread risk and share the funding requirements.  Oxus
believes that adopting this strategy will provide greater opportunities for
development within the region.





                                      END







Further enquiries:

Oxus Gold plc                             Tel: + 44 (0)20 7907 2000
Richard Wilkins, Company Secretary



Bankside
Keith Irons                               Tel: + 44 (0)20 7367 8873
Oliver Winters                            Tel: +44 (0)20 7367 8874






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

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