Andash Mine Update

Aurum Mining PLC 19 April 2007 For immediate release 19 April 2007 AURUM MINING PLC ('Aurum' or 'the Company') Andash Mine Construction Update Directorate Change Further re Deferred Consideration Aurum Mining plc (AIM: AUR), the gold-mining company focussed on the Former Soviet Union, is pleased to announce that, following its recent £30 million placing to fund the development of an open-cast mine at Andash Zone 1 in the Kyrgyz Republic, it has recently appointed additional key members of the operations team to lead the construction and commissioning of the mine. The detailed design study is progressing and it is expected that construction work will begin imminently with the production of gold and copper anticipated in early 2008, thereby completing Aurum's transition from gold explorer to producer. The operational management team, comprising Operations Director Jeff Geissmann, Financial Controller Andrew Howson, and Project Manager Norman Livingston, has significant combined international experience in the successful delivery of mining and other projects, including projects in the FSU, and will augment the existing Andash Mining Company team, which has been managing Aurum's activities in the Kyrgyz Republic. The new team members will work with Andash Mining Company's General Director, Oleg Kim, and Deputy General Director Erkinbek Kazakbaev, who will remain responsible for all legal and procedural activities. As Aurum is now in the development stage, John Webster, a Non-Executive Director of the Company, has agreed to be contracted directly to supply consulting and engineering services to the Company and as such he is expected to play a key role in the construction of the Andash mine. In order to allow Mr Webster to fulfil this role he will step down from the Board of the Company with effect from 1 May 2007. The proven and probable reserve at Andash Zone 1 contains gold and gold equivalent in copper of more than 1.2 million ozs. As a result of the significant extent of the resource, and as announced on 19 December 2006, the maximum deferred consideration of $5 million is payable under the terms of Aurum's acquisition in 2005 of the Andash project from Kaldora Company Limited, whose wholly owned subsidiary Andash Mining Company holds a licence over the Andash project. In accordance with the terms of the acquisition agreement the consideration is being settled by the issue of 2,500,000 ordinary shares of 1p each (the 'Ordinary Shares') in the Company at a fixed price of $2 per share (the 'Deferred Consideration Shares') as follows: • 1,500,000 Deferred Consideration Shares to Kantanna Company Ltd, a company controlled by Oleg Kim, the general manager of the Andash project • 500,000 Deferred Consideration Shares to Jake Consultants Ltd, a company controlled by David Bryans, a consultant to Aurum • 500,000 Deferred Consideration Shares to John Webster. Following the allotment of the Deferred Consideration Shares, Oleg Kim and Kantanna Company Ltd will hold 1,860,000 Ordinary Shares (representing 3.88 per cent. of the Company's enlarged issued share capital and voting rights), David Bryans and Jake Consultants Ltd will hold 2,870,000 Ordinary Shares (representing 5.89 per cent. of the Company's enlarged issued share capital and voting rights) and John Webster and Clayhill Investments Corporation (a company controlled by John Webster) will hold 1,145,000 Ordinary Shares (representing 2.39 per cent. of the Company's enlarged issued share capital and voting rights). Application has been made for the admission of the Deferred Consideration Shares to trading on AIM which is anticipated to occur on 24 April 2007. Upon admission, the Company's enlarged issued share capital will comprise 47,967,005 Ordinary Shares with voting rights. The Company does not hold any shares in treasury. This figure of 47,967,005 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules. No further deferred consideration will fall due in respect of the other exploration Zones and areas within the Andash licence area, where significant potential opportunities have been identified including a possible faulted extension to Zone 1. Mark Jones, Aurum Mining's Chief Executive Officer, said: 'After raising £30 million in equity to fully fund the Andash Zone 1 mine, one of the critical steps to the successful delivery of the project was the appointment of an effective operational management team. I am delighted, so soon after the fundraising, to have appointed such an experienced extension to the team, whose combined skills will ensure the successful delivery of the Andash mine. Initial production at Andash is on track for early 2008, allowing Aurum to complete the transition from explorer to producer.' For further information: Aurum Mining plc Tel: 020 7478 9050 Mark Jones, Chief Executive Officer Chris Eadie, Chief Financial Officer Arbuthnot Securities Tel: 020 7012 2000 Graham Swindells John Toll Buchanan Communications Tel: 020 7466 5000 Mark Court / Rebecca Skye Dietrich Notes to editors Aurum Mining, which joined the AIM market of the London Stock Exchange in May 2004, is a mining company focussed on gold opportunities in the Former Soviet Union. Its principal asset is an exploration licence over the Andash gold and copper project in the Kyrgyz Republic. A mining licence for Andash Zone 1 was awarded by the Kyrgyz authorities in 2006. The bankable feasibility study compiled by Wardell Armstrong International, also in 2006, confirmed a measured and indicated resource base of 19.2 million tonnes at 1.1 grams per tonne of gold and 0.4% copper, which equates to 1.1 million ozs of gold and gold equivalent. Initial production at Andash Zone 1 is expected in 2008. The Andash project also includes Zone 2 and Zone 3 along with Tokhtonysay, Nakhodka and three other additional exploration areas. This information is provided by RNS The company news service from the London Stock Exchange
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