Review of Veduga strategy

RNS Number:7348S
Trans-Siberian Gold PLC
17 October 2005

For release at 07.00, 17 October 2005

                            Trans-Siberian Gold plc

                  TSG to review production strategy at Veduga

LONDON: 17 October 2005 - Trans-Siberian Gold plc ("TSG") can now report on the
preliminary results of the pre-feasibility study on TSG's 100% owned Veduga
project that is being carried out by Aker Kvaerner in conjunction with the
Russian institute Giprotsvetmet. Although these findings have yet to be
finalised in all respects, and the final report not completed until the end of
October, it is evident that constructing a complex metallurgical plant to
produce gold metal at the site is not economically viable for TSG on the
reserves currently established at current gold prices and given the lack of
available grid power.

Although the capital cost has yet to be definitively established the preliminary
numbers show that unless the capital cost of an 850,000 tonnes per annum mine
and process plant can be contained to below $220 million and estimated operating
costs reduced significantly the scale of operation envisaged is insufficient to
give TSG an acceptable return.

These preliminary calculations are based on mining and treating some 58% of the
2.8 million oz of JORC resources established (i.e 10.7 million tonnes at an
average grade of 5.37 g/t) at a rate of 850,000 tpa initially from open pits
followed by 350,000 tpa from underground. The process route (selected after
extensive testwork) envisages pressure oxidation of flotation concentrates with
an average recovery rate of 88.2%.

In the circumstances TSG is actively looking into a number of alternative
exploitation and other options. These include the production of flotation
concentrates to be transported to plants in the Urals, Kazakhstan and/or China
that have the technical capability of treating such material. The capital cost
of such a straightforward operation would be substantially lower. Testwork has
proven that the ore can be concentrated very efficiently by flotation and that a
high value product containing up to 50 g/t gold can be produced.

On the exploration front express assays are now to hand for one section of the
drill hole (no 541) drilled in the Powerline prospect 2 kilometres north of the
main Veduga zone that was briefly alluded to in the half year results issued on
20 September. In the hole there are two metasomatic zones with mineralisation
(pyrite, arsenopyrite and pyrrhotite) with the lower one (between 164.2 and
182.6 metres), the only one assayed so far, having an average grade of 1.9 g/t
over 18.4 metres, with individual intervals of 6 g/t and 6.7 g/t. As the
mineralisation is similar to that in the main Veduga orebody, OB1, this new
discovery is of potential significance. 4 further holes are now being drilled in
the zone by the Company's own diamond drilling rig.

At TSG's other major project in Russia, at Asacha in Kamchatka, work is
continuing on engineering studies, site preparation and completing construction
of the access road, while discussions with banks and lending agencies on project
finance are ongoing.

TSG also reports that Richard (Dick) Watts, TSG's Operations Director since June
2005, has accepted another appointment within the mining industry and has
resigned from the Company and the Board with effect from the end of October.

TSG is also looking at strategic options in relation to Veduga and more
generally. To this end discussions with third parties are taking place, although
these are at a very preliminary stage.

Ends

Contacts:

Jocelyn Waller, managing director                 +44 (0) 7778 164 376
                                                  +7 095 775 3929

Simon Olsen, finance director                     + 44 (0)1223 265 760

Keith Irons, Bankside                             +44 (0) 20 7367 8873
                                                  +44 (0)7885 356 639

Simon Rothschild, Bankside                        +44 (0) 20 7367 8871
                                                  +44 (0) 7703 167 065






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