A good announcement, and the price falls. One might almost think...

A good announcement, and the price falls. One might almost think that the previous rise was due to insider info and now the profit taking sell off... Nah....
AnnaP


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SCOUT DRILLING OF THE LUANG PROSPECT IMMEDIATELY TO THE NORTH - WEST
OF THE DISCOVERY GOLD DEPOSIT HAS INTERSECTED SIGNIFICANT NEAR
SURFACE GOLD MINERALIZATION.

BACKGROUND

Oxiana is developing the Sepon Gold Project based on the minimum
reserves for funding. Plant commissioning is on schedule for year
end.

Upside potential is substantial - at the existing five gold orebodies
laterally and at depth, at nearby prospects and within the 300sqkm
Sepon mineralized district.

Oxiana is now taking a more pro-active approach to adding to the gold
resource and reserve base with a view to growing potential output
ounces.

DRILLING RESULTS

The Luang prospect comprises a large (1km long x 100-200m wide) gold
in soil anomaly that lies only 500 metres to the north-west of the
Discovery gold deposit on the same major structure. Rio Tinto
reported intercepts of 13.4m @ 2.7g/t Au and 10.6m @ 5.2g/t Au.
Oxiana's recent follow up diamond drilling (14 holes/542m)
intersected excellent gold mineralisation in both the near surface
oxide environment and down dip in the primary zone at the Southern
end of the anomaly as follows:

HOLE NO EAST NORTH AZI/INC DEPTH FROM MINERALISED Au GRADE
INTERVAL* (g/t)**

DIS598 605886 1876996 140/-60 Surface 13m 2.4
including 5m 6m 4.2
DIS599 605902 1876983 145/-60 Surface 6m 8.5
and 38m 6m 4.6
DIS600 605870 1876960 180/-60 Surface 23m 3.0
and 34m 5m 4.2
DIS601 605945 1876955 180/-60 15m 2m 5.4
DIS611 605837 1877009 180/-60 55m 12m 2.0

* Interpreted to approximate true thickness.
** Fire assay; weighted averages of approximate 1 metre sample
intervals; 0.5g/t lower cut, no top cut; maximum 2m internal waste

Further drilling is required to determine the geometry and continuity
of the mineralised body.


O L Hegarty
MANAGING DIRECTOR