Preliminary Results

Aurum Mining PLC
26 September 2006


For immediate release                                          26 September 2006


                                AURUM MINING PLC
                           ('Aurum' or 'the Company')

           Preliminary results for the 12 months ended 31 March 2006

Aurum Mining plc (AIM: AUR), the company formed to acquire gold and other
mineral extraction projects in the Former Soviet Union (FSU) and whose principal
asset is the Andash project in the Kyrygz Republic, is pleased to announce its
preliminary results for the 12 months ended 31 March 2006.

Highlights post the period end

  • Upgrade of resource base at Andash Zone 1 to give a resource of 17.1
    million tonnes containing 624,000 ounces of gold and 72,000 tonnes of copper
    in Measured and Indicated categories

  • Submission of local feasibility study to Kyrgz authorities in preparation
    for application of a Mining Licence

  • Extensive mineralisation confirmed in Andash Zones 2 and 3 and start of
    work on new Andash exploration area, Tokhonysay

  • Placing to raise £2.5 million net of expenses in May 2006

Highlights in the period

  • Considerable progress in the period at the Andash project, both at Zone 1
    and in the other Andash exploration areas

  • Extension of Exploration Licence until December 2010 awarded by Kyrgyz
    authorities

Sean Finlay, Aurum Mining's Chairman, said: 'I am delighted by the progress made
during the period, which laid the foundations for  the upgrading of the Andash
Zone 1 resource to include 17.1 million tonnes containing 624,000 ounces of gold
and 72,000 tonnes of copper in Measured and Indicated categories. Andash Zone 1
is on track to produce gold in 2008 and we look forward to progressing our other
exploration opportunities in the Andash licence area.'



For further information:

Aurum Mining plc                                      Tel: [phone]
Mark Jones, Chief Executive

Arbuthnot Securities                                  Tel: [phone]
Graham Swindells

Buchanan Communications                               Tel: [phone]
Mark Court



Notes to editors

Aurum Mining joined the AIM market of the London Stock Exchange in May 2004 with
the strategy of seeking, evaluating and acquiring gold and other mineral
extraction projects in the Former Soviet Union (FSU). In January 2005 the
Company completed its first acquisition, giving the Company an exploration
licence over the Andash gold and copper project in the Kyrgyz Republic. Mining
consultant Wardell Armstrong International has confirmed a JORC resource
estimate of 1.49 million ozs of gold and gold equivalent in Andash Zone 1 in
Measured and Indicated categories. The Andash project also includes the Zone 2
and Zone 3 along with Tokhonysay and three other additional exploration areas.



CHAIRMAN'S STATEMENT

The year to the 31 March 2006 has been a year of tremendous progress at Aurum
Mining. It was a year in which the foundations were firmly laid for the
delivery, in 2008, of the Company's strategic objective of transforming itself
from a junior gold explorer to a cash-generating gold producer. It was also a
year in which Aurum continued its rapid development. By way of background, Aurum
joined the AIM market in May 2004 as a specially formed vehicle to target the
acquisition of gold assets in the Former Soviet Union (FSU).  It successfully
completed its first acquisition in January 2005, gaining an exploration licence
to the Andash gold and copper project in the Kyrgyz Republic.

Our work continues to reinforce the fact that the Andash asset is highly
attractive in terms of the gold resources in Zone 1 of the licence area, the
economics of gold recovery and the exploration potential of other regions within
the licence area. The resources in Zone 1 have been endorsed by Wardell
Armstrong International, aleading UK independent mining consultant, which
confirmed a JORC resource estimate of 624,000 ozs of gold and 72,000 tonnes of
copper

Our strategy is to begin production at the earliest opportunity at Zone 1,
thereby providing the cash flow to finance further exploration work in the
licence area. We have completed some exploration drilling in Zones 2 and 3,
which has confirmed extensive mineralisation, and are continuing to test the
extent of the resource in these two zones.

We have continued to work closely with the Kyrgyz authorities to advance the
Andash project. In February this year the Kyrgyz government extended our
exploration licence to 31 December 2010, which will allow us to carry out
further assessment of Zones 2 and 3 and to begin work on Tokhonysay, a new
opportunity in the Andash licence area. In June this year, we submitted our
local feasibility study to the Kyrgyz government, an important step towards the
application to Kyrgyz authorities for a Mining Licence for Andash Zone 1.  The
study covers the economic, mining, metallurgical, legal, environmental and
social factors for the project.

Wardell Armstrong International is preparing a full style feasibility study for
Zone 1, which will form the basis of discussions for the project financing of
the Andash mine.  This will be of an open pit design with the potential for
production rates of approximately 120,000 ozs of gold and gold equivalent per
annum. It is anticipated that the full western feasibility study will be
completed by December 2006.

Personnel

Aurum's management team has been strengthened during the period, particularly by
the appointment of Mark Jones, an executive with considerable international
mining and management experience, as Chief Executive in June 2005. At the time
of his appointment John Webster, formerly Aurum's Managing Director, became a
Non-Executive Director of the Company, a role in which he is able to continue to
provide the Company with his vast experience of mining in the Former Soviet
Union. In September 2005, Dr Colin Knight, a mining professional with a
formidable track record, also joined Aurum's Board as a Non-Executive Director.

To control overheads, Aurum retains a small team of key people and I would like
to thank the entire team, both in the UK and the Kyrgyz Republic, for their
contribution to the Company's successful development.

Robust Environmental and Health and Safety policies are fundamental to Aurum's
success; a proactive interaction with community groups has been initiated on
these matters.

I acknowledge with thanks the contribution of my fellow directors and that of
the dedicated staff of Aurum's Kyrgyz subsidiary, Andash Mining Ltd., under the
leadership of Mr Oleg Kim.

Financial

For the year to 31 March 2006 the Company reported a loss after tax of £1.25
million.

In May 2006, the Company successfully raised £2.5 million before expenses
through a Placing of new ordinary shares by Arbuthnot Securities, the proceeds
of which are being used primarily for working capital to allow completion of the
full feasibility study for Zone 1 and to fund further exploratory drilling work
at Zones 2 and 3. The new shares were admitted to AIM on 12 May 2006, resulting
in the Company having 12,365,468 shares in issue.

Outlook

The current year has started well across the business. From an operational
viewpoint we have submitted the local feasibility study for Andash Zone 1 to the
Kyrgyz authorities and drilling work has provided further details of the Zone 1
resource and the potential of Zones 2 and 3. From a financial perspective, our
balance sheet has been strengthened by the May 2006 fundraising.

We are now entering a very exciting phase in the development of Andash with the
expected completion of the full feasibility study by December 2006. We remain
confident that Aurum Mining will make the transition to a gold producer in 2008
and therefore look forward to the future with confidence.

Sean Finlay
Chairman
26 September 2006


CHIEF EXECUTIVE'S REVIEW

Aurum Mining acquired the Andash project in January 2005, just before the start
of the 12 month period under review to 31 March 2006.  In summary, the Andash
gold and copper project is in the Talas Valley in the North West of the Kyrgyz
Republic on the border with Kazakhstan. The project is situated in the Tien Shan
gold belt, which stretches across Central Asia from Uzbekistan in the west
through to China in the east.

The Andash project is 260km west of the capital Bishkek and the nearest village,
Kopero Bazar, is 1.5km away. The licence area is at an elevation of between
2,100m and 2,400m and can be accessed year round by a combination of tar and
dirt road.  Major power lines are within 15km of the deposit.

Zone 1 of the project contains 624,000 ounces of gold and 72,000 tonnes of
copper in a porphyry style orebody that has a core of unusually high grade ore.
The ore body lies close to the surface and has a low strip ratio, which,
combined with the site's location close to appropriate infrastructure, should
see a low cost mining operation developed in 2007 for production in 2008.

The exploration licence covers an area of 53km(2) and is valid until December
2010, following an extension awarded to Aurum by the Kyrgyz authorities in
February 2006. There is an undemanding work commitment of $60,000 in this
calendar year as a condition of the licence extension, which the recent drill
programme and feasibility work has already exceeded. Kyrgyzstan mining law
stipulates that on discovery of a mineable deposit the licensee will have
exclusive rights to obtain a mining licence.

Exploration in Zones 2 and 3 plus additional targets

Andash has three known mineralised zones and four additional exploration
opportunities located within the 53km(2) exploration licence area. To
investigate these opportunities and increase the size of the resource, the
Company has embarked on an exploration programme to test the extent of Zones 2
and 3, which lie to the west of Zone 1, and to look at the possible faulted
extension of Zone 1 itself.

Previous work has indicated that the distance between orebodies is approximately
200m. They have variable thickness and can be traced along strike for more than
1km. The gold and copper content also appears variable from near background
levels up to tens of g/t gold and 1.5% copper.

To test this, Aurum has embarked on a preliminary exploratory drilling programme
on a 200x80-280m grid, with sections aligned across the known mineralised zones,
and to intersect the large IP anomaly identified to the north of Zones 2 and 3.
Aurum plans to drill 5-6 sections with 3-4 holes per section to a depth of
150-250m, giving a total distance of some 3,000m. However, this programme will
be constantly evolving as new geological data emerges.

The drilling results from the first section of the new programme were received
in May 2005. Three holes, P15, P16 and P17, drilled approximately 50m apart all
intersected mineralisation in zones 2 and 3, with hole P17 testing the near
surface ore zone and holes P15 and P16 intersecting the structure further down
dip. Holes P15 and P16 proved the presence of blind mineralisation.

Results from the 3 holes show the ore zone intersections vary in thickness.  In
hole P17, where the ore zone comes close to surface, mineralisation is seen to
occur as thin stringers in a clay rich formation. This becomes more coherent
down dip as seen in holes P15 and P16. The ore zone is seen to increase in
thickness and grade in the down dip portion to approximately 50m in hole P15,
with gold values varying between 1.5g/t and 0.31g/t. Although the average grade
from the 3 holes is 0.49g/t, initial interpretation indicates that selective
mining of the ore zone would be possible. Intersections of higher grade in hole
P15 (26m at 1.51g/t) suggests that gold grade improves down dip.  This confirms
what has been seen in previous drilling, which has shown that the gold content
increases to an average of 1.4-1.5g/t to a maximum of 2.23-2.35g/t. Higher level
targets analogous to this are the aim of this exploration programme.
Encouragingly, dozer road preparation for hole P37 (the next hole to be drilled)
has already cut previously unknown surface mineralisation.

The results greatly improve our understanding of the structural and
morphological characteristics of these zones.  Most mineralised zones are
confined to approximate east-west trending, gently northerly dipping
structural-tectonic zones, with thickness variations from (tens to hundreds of
metres).  These zones appear further localised by cross-faults.

Exploration drilling was temporarily suspended post the period end in June 2006,
owing to a review by the Company of the procurement of drilling services. The
Company decided to work independently from drilling contractors and has
purchased its own wire line core drilling equipment, which is currently being
shipped to the Kyrgyz Republic. It is anticipated that drilling will recommence
shortly.

Meanwhile, surface pits and trenching operations have been initiated at one of
the 4 additional exploration opportunities, Tokhonysay.

In-fill drilling in Zone 1

Wardell Armstrong International (WAI) was contracted in 2005 to generate an
independent resource estimate for Zone 1 in digital format in accordance with
the JORC resource classification. At that time 9.94 million tonnes were
classified as Measured and Indicated, with 7.61 million tonnes in the inferred
classification.  Under the direction of WAI, an in-fill drilling programme was
initiated early in 2006 to increase the resource estimate within Zone 1 and
transfer inferred resources through to Measured and Indicated. This was done by
closing the drill hole spacing down to 25m thereby improving the confidence in
grade estimation. A total of 2652m of core drilling comprising 19 holes was
completed.  In addition, the Company completed 5 HQ core holes totalling 713m
for geotechnical and resource purposes in and around the proposed pit.

As a result of the drilling programme WAI upgraded the JORC resource estimate,
and we now have a total Measured and Indicated resource of 17.1 million tonnes,
with a further 200,000 tonnes in the inferred category. Total metal content has
increased, giving improved grades when calculating the resource with a cut-off
of 1.25g/t of gold and gold equivalent. The resource now has 624,000 ozs of gold
and 72,000 tonnes of copper.

The results are tabulated below:

            Andash Resources @ 1.25g/t Aueq Cut-Off (September 2006)

Category                  Type          Tonnage (kt)    Au (g/t)      Cu(%)           Au (kg)       Cu (kt)

Measured                  Oxide         835             0.89          0.51            741           4.2
Measured                  Sulphide      2,980           1.21          0.47            3,599         14.1

Total measured                          3,815           1.14          0.48            4,340         18.3

Indicated                 Oxide         855             0.85          0.42            726           3.6
Indicated                 Sulphide      12,400          1.16          0.40            14,353        50.0

Total indicated                         13,255          1.14          0.40            15,080        53.06

Total measured and                      17,070          1.14          0.42            19,420        71.9
indicated


Mining

The gold-copper orebody at the deposit comprises a northwest-southeast striking,
gentle southeast plunging mineralised porphyry-style body which is present at
surface, making it eminently suited to open pit mining methods. Initial
modelling by WAI allows for production rates of 2,000,000 tonnes per annum with
low stripping ratios.

Metallurgical test work

A 2,100kg bulk sample was compiled from four of Aurum's new drill holes and sent
to WAI for metallurgical testing. The grade of this sample was 1.3g/t gold and
0.51% copper, which the Company believes to be representative of the likely
future production. The results of this test work demonstrated gold recoveries of
75% in a circuit of gravity and flotation and copper recoveries of 70% in
flotation. Additionally a further 25% of the gold could be recovered by cyanide
leaching of the flotation tails but due to the presence of copper, cyanide
consumption would be high. The oxides show good recovery of copper in acid leach
tests, recovering 86% of copper with low acid consumption. However since test
work has confirmed that a portion of the oxides can be recovered in flotation
the Company believes that to keep capital costs to a minimum and to bring
production in the shortest time, a combined gravity flotation circuit is
optimal. The ore also contains low silver grades, which would be payable in the
copper concentrate.

Environmental

The Company has secured comprehensive baseline study for the environmental
aspects of the project. We now have more than one year's continuous monitoring
of the flora, fauna and water quality that will be included in the environmental
impact study managed by WAI. All technical aspects of the proposed project have
been carefully considered to ensure the highest environmental standards.
Cognisance is taken of new technological opportunities to reduce environmental
risk where appropriate.

Social Impact

The Company has taken a number of initiatives to develop a good working
relationship with both the local population as well as regional and local
government. As Kopero Bazar is located within view of the proposed mining
venture, we have sought the opinions of individual groups representing the local
population, local government and NGOs to monitor and minimise any negative
impact on social structures.

In accordance with good governance, we have set up a social fund which has
actively participated in both local health and education projects, and we are
currently negotiating with representative parties to further advantage the local
population. Our future recruitment policy will be to educate, train and employ
the local labour force where possible. Education levels in the region are high,
but Aurum intends to augment this to ensure the local population benefit most
from the increased economic activity that a successful mining project will
create.

Local feasibility study

Post the period end, in May 2006, Aurum submitted a local feasibility study to
the Kyrgyz government covering the economic, mining, metallurgical, legal,
environmental and social factors for the first phase of Andash, which is a key
step in the application for a mining licence. All aspects of the study have now
been approved by the Kyrgyz authorities. Kyrgyz mining law stipulates that on
discovery of a mineable deposit the exploration licence holder will have
exclusive rights to obtain a mining licence.

Full feasibility study

To take the project through to production, Aurum has contracted WAI to author a
comprehensive feasibility study with work on plant design and tailings disposal
which is being carried out in conjunction with GBM and Golder Associates. The
full feasibility study will upgrade the resource to a proven and probable mining
reserve and be used to raise project finance. Initial discussions with banks and
other recognised financial institutions have indicated an enthusiasm to work
with Aurum, and the intention is to further these discussions with a view to
tailoring the final study to meet the needs of specific investors for project
finance.

The study is expected to be completed before the end of 2006, which should allow
project finance to be arranged in the first quarter of 2007.

The successful implementation of this strategy should see Aurum bringing the
Andash project on stream in the first half of 2008, just 3 years from initial
acquisition.

Conclusion

The period under review has been one of rapid progress during which the Andash
acquisition has been transformed from an exploration opportunity to a clearly
defined resource which it is expected will allow Aurum to become a gold
producing, and therefore cash generating, company in 2008. We anticipate further
important milestones in the coming weeks and months, notably completion of our
full feasibility study and the securing of project finance.

Mark Jones
Chief Executive
26 September 2006


Aurum Mining plc

Consolidated profit and loss account for the year ended 31 March 2006

                                                        Note                Year ended             Period
                                                                              31 March              ended
                                                                                  2006           31 March
                                                                                 £'000               2005
                                                                                                    £'000

Administrative expenses - exceptional items                                      (252)                  -
Administrative expenses - other                                                (1,006)              (389)

Total administrative expenses and operating loss                               (1,258)              (389)

Interest receivable and similar income                                              21                 45
Interest payable                                                                  (14)                  -

Loss on ordinary activities  before taxation                                   (1,251)              (344)

Tax on loss on ordinary activities                                                   -                  -

Loss on ordinary activities after taxation                                     (1,251)              (344)

Retained loss for the financial year                                           (1,251)              (344)
                                                    
Loss per share - basic and diluted                        2                   (13.16p)            (4.23p)



All amounts relate to continuing activities.

All recognized gains and losses in the current and prior period are included in
the profit and loss account



Aurum Mining plc

Consolidated Group balance sheet as at  31 March 2006

                                                                                    Group           Group
                                                                                     2006            2005
                                                                                    £'000           £'000
Fixed assets
Intangible fixed assets                                                             1,305             819
Tangible fixed assets                                                                 263             189
Investments in subsidiary undertakings                                                  -               -

                                                                                    1,568           1,008
Current assets
Stocks                                                                                 11               -
Debtors: amounts falling due within one year                                           85             265
Debtors: amounts falling after one year                                                 -               -

Total Debtors                                                                          85             265
Cash at bank and in hand                                                              321             944

                                                                                      417           1,209
Creditors: amounts falling due within one year                                      (339)           (281)

Net current assets                                                                     78             928

Convertible loan notes                                                              (643)               -

Net assets                                                                          1,003           1,936

Capital and reserves
Called up share capital                                                                95              95
Other reserve                                                                         304               -
Share premium                                                                       1,687           1,687
Merger Reserve                                                                        498             498
Profit and loss account                                                           (1,581)           (344)

Shareholders' funds                                                                 1,003           1,936



Consolidated cash flow statement for the year ended 31 March 2006

                                                                             Year ended         Period ended
                                                                          31 March 2006             31 March
                                                                                  £'000                 2005
                                                                                                       £'000

Net cash outflow from operating activities                                        (953)                (487)

Returns on investments and servicing of finance
Interest received and similar income                                                 21                   45
Interest paid                                                                      (14)                    -

Net cash inflow from returns on investments and servicing of                          7                   45
finance

Capital expenditure and financial investment
Purchase of tangible fixed assets                                                 (138)                (179)
Deferred exploration expenditure                                                  (486)                 (56)

Net cash outflow for capital expenditure and financial
investment                                                                        (624)                (235)

Acquisitions
Purchase of subsidiary undertaking                                                    -                (160)
Cash acquired with subsidiary                                                         -                    5

Net cash outflow from acquisitions                                                    -                (155)

Cash outflow before management of liquid resources & financing                  (1,570)                (832)

Financing
Issue of ordinary shares                                                              -                2,150
Issue of Convertible Loan Notes (net of issued costs)                               947                    -

Cash inflow from financing                                                          947                1,776

(Decrease)/increase in cash in the year                                           (623)                  944




1          Accounting policies

Basis of preparation

The financial statements have been prepared in accordance with currently
applicable Accounting Standards in the United Kingdom, which have been applied
consistently, and under the historical cost convention.

The figures of the year ended 31 March 2006 do not constitute full accounts
within the meaning of Section 240 of the Companies Act 1985. They have been
prepared under the accounting policies set out on the Company's statutory
accounts for the year ended 31 March 2005. The figures for the year ended 21
March 2004 have been extracted from the full accounts of that period, which have
been delivered to the Registrar of Companies on which the auditors gave a
qualified report in relation to limitation of scope and included a statement
under section 237  (2)  and  (3).

A copy of the Company's annual report is available on Aurum Mining's website,
www.aurummining.net.

Basis of consolidation

Aurum Mining Plc, together with it's subsidiary as detailed in note 9, is a gold
exploration group that is focused on opportunities in the territories of the
Former Soviet Union.

The consolidated financial statements incorporate the results of Aurum Mining
Plc and all of its subsidiaries as at 31 March 2006 using the acquisition method
of accounting as required.  Under the acquisition method, the results of
subsidiary undertakings are included from the date of acquisition.

The Company has taken advantage of Section 230 of the Companies act 1985 in not
presenting its own profit and loss account. The Company's loss for the year was
£954,892 (2005 loss of £335,357).

Stocks

Stocks are stated at the lower of cost and net realisable value.

Fixed asset investments

Investments held as fixed assets are stated at cost less provision for any
impairment to their carrying value.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is
provided at rates calculated to write off the cost less the estimated residual
value of each asset over its expected useful economic life, as follows:

Office and computer equipment:        -     3-5 years on a straight-line basis
Plant and equipment:                  -     3-5 years on a straight-line basis

Unevaluated mining properties

All costs associated with mining development and investment are capitalised on a
project-by-project basis pending determination of the feasibility of the
project. Costs incurred include appropriate technical and administrative
expenses but not general overheads. If a mining development project is
successful, the related expenditures will be amortised over the estimated life
of the commercial ore reserves on a unit of production basis.  Where a licence
is relinquished, a project is abandoned, or is considered to be of no further
commercial value to the Company, the related costs will be written off.

The recoverability of deferred mining costs and mining interests is dependent
upon the discovery of economically recoverable reserves, the ability of the
Company to obtain necessary financing to complete the development of reserves
and future profitable production or proceeds from the disposition of recoverable
reserves.

Costs on productive areas are amortised over the life of the area of interest to
which such costs relate on a unit of production output basis.

Environmental provisions

Appropriate and adequate provision is made for rehabilitation costs over the
estimated year of exploration activity. As at 31 March 2006 no environmental
damage had occurred and hence no provision has been made.

Operating leases

Amounts payable under operating leases are charged against income on a
straight-line basis over the lease term.

Foreign currency transactions

Monetary assets and liabilities denominated in foreign currencies are translated
into sterling at rates of exchange ruling at the balance sheet date.
Transactions in foreign currencies are translated into sterling at the rate of
exchange ruling at the date of the transaction. Exchange differences are taken
to the profit and loss account as they arise. Results of overseas subsidiaries
and their balance sheets are translated at year end rate. Exchange differences
which arise from the translation of the opening net assets of foreign
subsidiaries are taken to reserves.

Deferred Taxation

FRS 19 'Deferred tax' requires deferred taxation to be recognised in full in
respect of transactions or events that have taken place by the balance sheet
date and which could give rise to an obligation to pay more or less taxation in
the future. Deferred tax assets are only recognised to the extent they are
deemed recoverable. The Group has chosen not to discount deferred tax balances,
as permitted by FRS 19.

Convertible Debt

In accordance with FRS4 and FRS25, the Company has classified the convertible
debt in issue as a composite financial instrument. Accordingly, the Company
presents the liability and equity component separately on the balance sheet. The
classification of the liability and equity component is not reversed as a result
of a change in the likelihood that the conversion option will be exercised. No
gain or loss arises from initially recognising the components of the instrument
separately. Interest on the debt element of the loan is accreted over the term
of the loan. Costs associated with raising debt are set off against the gross
value of monies received.

Financial instruments

•         short term debtors and creditors are not treated as financial assets
          or financial liabilities except for the currency disclosures; and

•         the Group does not hold or issue derivative financial instruments for
          trading purposes.

Share based employee remuneration

When shares and share options are awarded to employees a charge is made to the
profit and loss account based on the difference between the market value of the
Company's shares at the date of grant and the option exercise price in
accordance with UITF Abstract 17 (Revised 2004) 'Employee Share Schemes'.

2      Loss per ordinary shares

The calculation of loss per share of  13.16 pence (2005 - 4.23 pence) is based
on the loss for the year of £1,251,000  (2005 - £344,000) and on the weighted
average number of shares in issue during the year of 9,505,775 (2005 -
8,144,579).

Due to the loss in the year the effect of all potential ordinary shares is
antidilutive.

3      Exceptional Items

On 7 December 2004 the Company entered into an agreement with Geocentr whereby
the Company agreed to make available a facility of up to $170,000. The loan
carries an interest rate of 5% and was due for repayment not later than 31 March
2006. The amount lent to Geocentr was £89,366. The purpose of the Loan was to
enter into a strategic relationship with a view to acquire a substantial equity
stake in Geocentr. The acquisition of Geocentr could not be completed within the
conditional agreement's terms and therefore was terminated. As part of the
conditional agreement entered into with Loyal Wealthy, it was agreed that the
benefit of an outstanding loan of £89,366 to Geocentr would be assigned to Loyal
Wealthy.  The board have made full provision against this balance to reflect the
uncertainty regarding the eventual recovery of the balance outstanding.

On 3 August 2004 the Company entered into an agreement with Power Products
International ('PPI'). Under which the Company would make available to PPI an
interest free loan of up to £150,000 to assist in the refurbishment of a
drilling rig owned by PPI in consideration for the right to require PPI to carry
out drilling into the last quarter of 2005.  The debt is to be repaid by the
provision of drilling services at the Andash mine in Kyrgyzstan to the Company
at cost price. Following repayment of the debt the Company will have the right
to require PPI to carry out drilling in Central Asia at any time for year of
three years on three months notice at a discounted rate of 120% of cost.

The board are currently considering the future drilling programme and the
suitability of available drilling rigs.  There is some uncertainty as to whether
the equipment available from PPI will be the most suitable for some of the
drilling targets and therefore whether the Company will utilise the PPI
agreement and eventually recover the above amount.  The board have therefore
provided at this stage against the balance but will review this once the
drilling programme is further defined.

4  Post Balance Sheet Events

The Company announced on 8 May 2006 that a placing of 2,777,778 new ordinary
shares of 1 pence each  have been placed by Arbuthnot Securities Limited with
institutional investors at a price of 90 pence per share to raise £2.5 Million
before expenses. The placing shares represent approximately 22.5 per cent of the
enlarged issued share capital of the Company.

The net proceeds of the placing will be used primarily for working capital
purposes in order to complete the engineering design work required to complete
the feasibility study and conduct further drilling on exploration zones 2 and 3
at the Company's Andash project

On 20 April 2006, application was made for the admission to trading on AIM of
81,915 ordinary shares of 1p each in the Company pursuant to the exercise of
options.  The shares rank pari passu with the Company's existing issued ordinary
shares.




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