Acquisition Of Oxus Assets

RNS Number:6010V
KazakhGold Group Ltd
26 April 2007



26 April 2007





                              KAZAKHGOLD ANNOUNCES

                      ACQUISITION OF THE OXUS GOLD ASSETS





Following its announcement on 12 March 2007, KazakhGold Group Limited (LSE: KZG)
is pleased to announce that it has signed a Sale and Purchase Agreement with
Oxus Gold PLC (LSE: OXS) to acquire the following assets from Oxus Resources
Corporation, a wholly owned subsidiary of Oxus:



*        The entire issued share capital of Norox Mining Company Limited which,
via its 66.67% holding in the Talas Gold Mining Company, owns the substantially
completed gold processing plant at the site of the Jerooy gold project in Talas,
Kyrgyzstan.



*        The remaining 50% of the issued share capital of Romaltyn Limited,
which KazakhGold acquired jointly with Oxus in November 2006.



As part of the transaction, KazakhGold will also acquire a 25% interest in Hatay
Madencilik SA and the right to an option relating to the Karakilise copper
deposit licence in Turkey, currently owned by Oxus 86% owned subsidiary,
Marakand Minerals Limited (LSE: MKD)



As consideration for the acquisition of these assets, KazakhGold will issue
3,541,666 new shares to Oxus, representing approximately 7% of the enlarged
share capital of KazakhGold following the issue of the consideration shares. The
consideration, i.e. number of shares, will not be subject to adjustment to
reflect fluctuations in the KazakhGold share price.



Additionally, KazakhGold has agreed that a further US$80 million in cash will be
payable to Oxus within 30 days of KazakhGold acquiring, or acquiring the benefit
of, a licence to mine the Jerooy gold deposit in Kyrgyzstan and commencing
development or production at Jerooy. Any such payment is conditional, inter
alia, on Oxus ceasing its claim against the Kyrgyz government regarding the
Jerooy license.



The acquisition will complete upon the delivery of the appropriate title
documents, including the share certificates and transfer documents in respect of
the assets by Oxus in exchange for the KazakhGold Shares. Completion is expected
to occur on or about 15 May 2007.



Executive Chairman, Kanat Assaubayev, commented on the announcement:



"We are very pleased with completing the acquisition of assets from Oxus Gold.
This transaction will allow us to consolidate our position in Romania and expand
to the new markets of Kyrgyzstan and Turkey. All of these projects represent
significant growth potential and we look forward to developing our operations
across the region in line with our strategy."





Further Information:



Aidar Assaubayev

KazakhGold Group Limited


Tel:  +73272509264


Ron Marshman/John Greenhalgh

City of London PR Limited



Tel: +442076285518




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

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