Oxus Gold Plc (LSE: OXS) Update on Arbitration Proceedings

Good Morning, I'm shattered so apologies for the lack of Grammar / literacy. 

Oxus Gold Plc (LSE: OXS) Update on Arbitration Proceedings

I'm going to publish it in full so the context is easy to follow (see below). I'm not sure what frustrations there can be for shareholders, surely one was aware of the confidentially clause(s) and the limited news flow. What is positive is the anticipated ruling is this year. Its my view the appreciation in company value and/or the legal claim is entirely missed by the market. 

Some people belt on about "target price" base on some hope of value etc...Nothing up with that at all, makes perfect sense and good practice. With Rurelec and Oxus Plc specifically, and in part Churchill and Pathfinder, its a case of the assets being expropriated whether directly by the Government or by individuals with the consent of the Government department or legal system (you could argue co-conspirators). However, what I do not understand is for the analysts incapability in assessing value and potential. It either shows a flaw in their modelling or a misguided belief in the process or systems for International Arbitration. Alternatively I could be totally wrong and they're all worthless, please remember that...Victoria Oil & Gas, irrespective of my view on responsibility, has clearly improved their financial situation, but with a messy 'Emergency Tribunal' to clarify items (deliberate stalling in my view). 

As such, at least there will be some excitement in 2014, with Oxus and potentially Churchill Mining, that's in addition to Rurelec and Pathfinder, which even allowing for the Mozambique 'slowness' will prove fruitful, potentially a final ruling for VOG to move forward. 

Of more importance in today's RNS is the terminology, "updated independent quantum report, and updated expert opinions on mineral deposit valuation and on issues of investment finance." Which covers the issues surrounding 'finance and valuations.' Albeit with the change in gold price etc..there has to be some allowance for the change in price but on the flip side, for the significant higher prices previously and the availability of Gold Finance due to the price being higher previously. I am sure Oxus will present the facts much better than I've described them.

Atb Fraser

20 January 2014

Oxus Gold PLC

Update on Arbitration Proceedings

Oxus Gold plc ("Oxus Gold" or the "Company") refers to the ongoing UNCITRAL international arbitration proceedings commenced by Oxus Gold against the Government of Uzbekistan on 31 August 2011, in relation to the expropriation of theCompany's investments in Amantaytau Goldfields and the Khandiza deposit, as described in RNS Number 3270N dated 31 August 2011.

Update on the Arbitration Proceedings

Oxus Gold's Rejoinder, prepared with the assistance of its legal counsel, Derains & Gharavi, was submitted to the Tribunal in 2013. It developed the position of the Company in the dispute as previously set out in the Statement of Claim (see RNS Number 4620M dated 18 September 2012), and was accompanied by numerous factual and legal exhibits and witness statements, and supported by an updated independent quantum report, and updated expert opinions on mineral deposit valuation and on issues of investment finance.

Calendar

A procedural calendar for the remainder of the arbitration proceedings has been established by the Tribunal. Confidentiality obligations of the arbitration do not allow Oxus Gold to disclose the procedural calendar but the Company can confirm that the hearing will be held and the decision of the Tribunal is expected during 2014.

Shareholders will continue to be advised, subject to confidentiality obligations, of any further material developments in respect of the arbitration as and when they occur.

Richard Shead, Chairman of Oxus Gold, commented:

"I understand shareholders' frustration at the lack of informationbeing provided to them as a result of the confidentiality obligations of the arbitration. However, I can confirm proceedings are progressing as expected and the Board of Oxus Gold remains positive that shareholders will be appropriately compensated for the blatant expropriation of the Company's mineral rights in Uzbekistan."

For further information, please contact:

Oxus Gold PLC Richard Shead	Tel: +44 (0) 20 7907 2000
SP Angel Corporate Finance LLP Ewan Leggat / Laura Littley	Tel: +44 (0) 20 3463 2260