Under the terms of the Financing, members of the consortium will make an investment in Oxus of approximately US$85 million by way of the issue of new Ordinary Shares in the Company and convertible loan notes.

In addition, the investors will be granted warrants to subscribe for new Ordinary Shares in the Company exercisable within five years of Admission for approximately US$20 million in return for an undertaking to arrange a further minimum of $80 million in project finance.

The funds will be used to provide working capital to the company and to finance and develop the 50% owned Amantaytau Goldfields joint venture in Uzbekistan, including the expansion of AGF’s existing open pit heap leach mining operations, the development of one or more underground mines, and an accelerated exploration programme.

The Financing proceeds are expected to enable AGF to target first production at the underground sulphide project for the middle of 2011 and thereafter an increase in annual production to approximately 300,000 ounces of gold annually, assuming all necessary regulatory approvals are granted.

The consortium consists of Baiyin Non-Ferrous Group Co Ltd, CITIC Construction Co Ltd, Chang Xin Yuan Su (Tianjin) Equity Investment Fund Management LP.

Baiyin and CITIC are ultimately owned and controlled by the Government of the People’s Republic of China. Chang Xin is a private equity fund registered in the People’s Republic of China and managed by Long March Investment Consulting (Beijing) Co. Ltd.

Pursuant to the Financing, members of the consortium will subscribe for 573,000,000 new Ordinary Shares in the Company at 6p per share, representing 59.7% of the Company’s share capital as enlarged by the Equity Subscription.

Members of the Consortium will, conditional on Admission, subscribe for US$30 million of convertible loan notes, convertible at 7p per share into 267,857,142 new Ordinary Shares, and valid for three years from Admission. The convertible loan notes will earn interest at 3% above six month LIBOR. In addition, members of the Consortium will be issued with warrants to subscribe for a further 89,285,714 new Ordinary Shares at 7p per share, and 62,500,000 new Ordinary Shares at 10p per share, subject to arranging a further US$80 million in project finance, and exercisable for five years from Admission.

Richard Shead, Chairman of Oxus, commented: “I am delighted that we have reached agreement with the Chinese consortium to provide this financing to the Company. The majority of these funds will be loaned to AGF, where we would hope to expand production to approximately 300,000 ounces a year, and also do justice to the very significant exploration potential within the license area, particularly with regard to the high grade underground project. Oxus will also be able to draw on the Consortium’s extensive technical expertise and we very much look forward to working with them. All parties will now focus on obtaining the relevant governmental agreements and approvals as soon as possible, and we continue to target 2011 for first gold production from the underground mine at AGF.”