Resolute Mining Limited — Capital/Financing Update 2003

Nov 16, 2003

17 November 2003

ASX ANNOUNCEMENT

OPTION TO ACQUIRE AGR LIMITED SHARES

Central Asia Gold Limited ("CGX") has been granted from Resolute Mining Limited an option to acquire its shareholding in AGR Limited.

The option, which expires on 5 December 2003, is exercisable at 28.5 cents per AGR share or approximately $11.4 million in total. The option price per share equates to approximately 43 cents per CGX share based on the recent bid terms for AGR by CGX of 2 CGX shares for every 3 AGR shares. The exercise price increases to 30 cents per AGR share if the gold price is higher than US$420 at the exercise date. CGX has paid Resolute $20,000 for the grant of the option.

The Boroo Project, AGR's primary asset will represent Mongolia's first large scale hardrock gold mine and is currently recognised as one of the country's largest gold deposits. Exploration potential still exists in AGR as well. On 29 October 2003 AGR advised that practical completion of the Boroo Project was expected within days. Production in 2003 is forecast at 210,000 ounces and cash costs over the life of the mine at less than US$170 per ounce. AGR has in place forward sales representing under 20% of its share of Boroo's proven and probable reserves. This provides on attractive hedging profile for investors in a rising gold price environment.

The operator of the project is Cameco Corporation, who is both well respected in the industry and has extensive gold experience, owning a one-third interest and operating the Kumtor Gold Mine in Kyrgyzstan.

The Board of CGX believes that an investment in AGR will compliment the Company's existing gold interests in Kyrgyzstan which includes CGX's recently announced Taldy Bulak Development Project. Further investment in AGR will enhance CGX's position in Central Asia, a region that is receiving considerable investors support, demonstrated by Robert Friedland's Ivanhoe Mines.

Yours sincerely

MARK SAVAGE Chairman

Inquiries:

Mark Savage 618 93226322 marksavage@comcast.net

ACN 009 153 128 Level 9, BGC Centre, 28 The Esplanade, Perth WA 6000 Tel: $+61893226322$ , Fax: $+61893226558$ PO Box Z5083, Perth WA 6831, Australia