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Oxus Gold, Stella Diamonds news briefs

Contributed by Fox-Davies Capital

Oxus Gold PLC announced an update on the arbitration proceedings. In respect of the Company's Khandiza investment, Ernst & Young has assessed Oxus's losses on alternative scenarios, on the basis of alternative dates of quantification (i.e. the date of the ultimate award and alternatively the date of expropriation), and on the basis of alternative investment structures (i.e. a concession agreement and alternatively a joint venture).

In respect of the Company's investment in AGF, Ernst & Young has carried out a similar assessment of Oxus's losses based on scenarios contemplating alternative dates of quantification, and on the basis of different acts of creeping expropriation amounting to breaches of the BIT.

On the basis of these different alternatives and these two investments, Ernst & Young has quantified the losses to the Company in respect of the AGF investment within a certain range, which Oxus cannot disclose as a result of its confidentiality obligations in the arbitration.

A procedural calendar for the remainder of the arbitration proceedings is being discussed. Confidentiality obligations of the arbitration do not allow Oxus to disclose the calendar once agreed or ordered.

Stella Diamonds PLC announced final bulk sampling results from the Katcha Dyke at the Company's Droujba kimberlite project in Guinea. A series of bulk samples were collected from a 100m strike length of the Katcha Dyke located some 600m to the northwest of the Droujba Pipe. All these samples have now been processed and the results collated.

A total of five samples comprising 299.14 tonnes of in-situ kimberlite material have been collected and processed by the Company's on-site 5 tonne per hour DMS plant with diamond recovery conducted by X-Ray Flowsort under observation from the Government mines observer. These samples were collected from the same section of the Katcha Dyke at approximately 20m intervals over a total distance of 100m. The kimberlite dyke varied in average width from 41cm to 141cm over the five 20m sections that were sampled. Each sample was carefully measured and its density and moisture content calculated so that the in-situ kimberlite tonnage could be accurately determined.

The processing yielded a total of 482.45 carats from the 299.14 tonnes of kimberlite to give an in-situ kimberlite grade of 161.28cpht (+1mm) for the composite five samples. Some 44 stones of greater than one carat were recovered, with 14 of these weighing in excess of two carats. The largest stones weigh 15.8ct (near gem), 10.45ct (rejection), 5.5ct (gem), 4.85ct (rejection). The diamonds will be exported to Antwerp in the near future for valuation.