("Aurum" or "the Company")

  Andash Mining Company  

Aurum announces that it has received notification that its wholly owned subsidiary, Andash Mining Company, has today been named as third party to a civil case to be heard in the Bishkek Inter-District Court ("the Court") in the Republic of Kyrgyzstan.

It is understood that the civil case has been brought against Marsa Gold LLC, a company controlled by Oleg Kim, a former employee and founder of Andash Mining Company. The case concerns a historical transaction involving the transfer of a number of assets (of which the Andash asset is one) prior to Aurum's acquisition of Andash Mining Company in January 2005.

As a result of the civil proceedings the Court has ordered a temporary cessation of any further financial transactions within all named third parties, including Andash Mining Company. Andash Mining Company will be lodging an appeal against the temporary cessation.

In the light of the lack of clarity surrounding the situation, trading has been suspended in the Company's shares with immediate effect.

A further announcement will be made in due course.

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