Final Results

RNS Number:4781E
Marakand Minerals Limited
26 October 2004



              Preliminary results for the year ended 30 June 2004
                               And Trading Update


Marakand Minerals Limited ("Marakand" or "the Company"), the mining exploration
and development company focused in Central Asia, is pleased to announce its
preliminary results for the year ended 30 June 2004.

Highlights include:

   * Positive completion of the Khandiza feasibility study, confirming the
     project is financially robust

   * Presently in discussion with the Uzbek Government with regard to
     finalising the Khandiza concession contract, with target completion of legal
     documentation in Q1 2005

   * Construction planned to commence in 2005 with first production from
     Khandiza in 2006

   * Competent Person's Update Report currently underway on the feasibility
     study

   * Exploration program developed for south-east Uzbekistan, prioritising
     massive sulphide targets

   * Exclusive exploration rights secured for the high grade Akjilga Silver
     Deposit in Tajikistan, which doubles Marakand's silver resource potential

Since listing on AIM in December 2004, Marakand has had an active start to its
corporate life, making good progress in furthering development of the Khandiza
polymetallic project in Uzbekistan, whilst expanding opportunities for
exploration and development in Central Asia.

Khandiza

The Khandiza feasibility study, published in September 2004, shows excellent
results in respect of the cornerstone elements of the project, including:

   * Confirmation of the resource (classified in compliance with the
     internationally recognised JORC code) and reserve evaluation

   * Development of designs for a low cost underground mine

   * Reduction of operating and capital costs (compared with earlier studies)
     whilst minimizing environmental impacts

   * Confirmation of the metallurgical test-work results

   * Selection of process plant and tailings disposal solutions

The project schedule envisages that underground mine development, process plant
and infrastructure construction will be completed within a 13 month period
following the conclusion of the concession contract and availability of finance.
With Khandiza being included in the Republic of Uzbekistan's Foreign Investment
Program, the Uzbek Government is eager for Marakand to fast track the project
development.

The feasibility study indicates that the project has a pre-production capital
requirement of US$71.23 million; that operating costs are $35.35 per tonne of
ore mined; and that cost of sales (including concentrate transport, smelter
refining and treatment costs) are $37.83 per tonne of ore mined. All operating
and capital costs include a 15% contingency.

Based on a zinc price of US$970 per tonne (USc44/lb); a lead price of US$570 per
tonne (USc26/lb); a copper price of US$2000 per tonne (USc91/lb); a silver price
of US$5.50 per ounce; and a gold price of US$385 per ounce, the revenue less
operating costs indicates a payback within 2.5 years.

Production from the proposed mechanized underground mine, is intended to
commence in 2006 at a mining rate of 650,000 tonnes per year. The initial
concession contract duration is 15 years.

Good ground conditions and wide ore zones imply high ore recoveries will be
achieved. The ore will be crushed underground and transported to surface by
conveyor. After crushing and primary milling at Khandiza, the ore will be
transported by pipeline to nearby Shargun, where the secondary milling and
flotation plant will be located.

Marakand plans to produce, on average, 101,800 tonnes of zinc concentrate,
35,600 tonnes of lead concentrate and 23,400 tonnes of copper concentrate per
annum over the first five years of production.

A detailed concentrate and metals marketing survey, completed during the year,
has confirmed strong demand for the Khandiza concentrates, with favourable
treatment and refining charges.


Exploration

In its Southeast Uzbekistan exploration areas, surrounding the Khandiza Deposit,
Marakand has identified four major volcanic centers associated with geochemical
anomalies and volcanogenic massive sulphide (VMS) mineralization. Of particular
interest is the Yakkabag Ridge where high-grade massive sulphides have been
sampled within a geological setting identical to that hosting the Khandiza
Deposit. Detailed exploration and drilling will commence in 2005.

Marakand's exploration activities in Tajikistan have had a positive start with
the identification and preliminary assessment of the high-grade Akjilga silver
deposit. A co-operation agreement has been signed with the State Committee of
Geology of the Republic of Tajikistan, and good progress has been made with
regard to securing an exploration license. A technical team has already been
established in Dushanbe, and is compiling exploration data on the deposit and
surrounding exploration area with the intention of completing a scoping study
early in 2005. Acquiring exploration rights to Akjilga more than double
Marakand's silver resource potential.



2005

Looking ahead, Marakand will continue to focus on the development of Khandiza in
order to meet its objective of producing an annual minimum of 140,000 tonnes of
combined zinc, lead and copper concentrates by 2007.

On the exploration front, Marakand will continue advancing its activities in
Uzbekistan and with the Akjilga Deposit in Tajikistan, while seeking additional
value-adding projects in the greater region.

The company remains well funded and appreciates the efforts of its experienced
team and the support of its shareholders, and looks forward to a busy and
exciting year ahead.

Enquiries:

Marakand Minerals Limited                          
Alasdair Stuart, CEO                               Tel: + 998 71 120 7162
Joanna Solino, Investor Relations Officer          Tel: [phone]

Williams de Broe Plc                               Tel: [phone]
Michael Shaw

Buck-Bias Limited                                  Tel: [phone]
Alex Buck / Nick Bias



Profit and Loss Account

                                                         Year            Year
                                                        ended           ended
                                                 30 June 2004    30 June 2003
                                                        $'000           $'000


Turnover                                                    9               -
Administration expenses                                  (377)             (7)
Deferred exploration and evaluation expenditure        (1,198)              -
-------------------------------                     -----------     -----------
Operating loss                                         (1,566)             (7)
Interest receivable                                       108               -
-------------------------------                     -----------     -----------
Loss on ordinary activities before taxation            (1,458)             (7)
Tax on loss on ordinary activities                          -               -
-------------------------------                     -----------     -----------
Retained loss for the financial year                   (1,458)             (7)
-------------------------------                     -----------     -----------
Loss per share
- basic (per share cents)                               (2.09)          (0.76)
-------------------------------                     -----------     -----------
- diluted (per share cents)                             (1.77)          (0.76)
-------------------------------                     -----------     -----------

The results above are derived from continuing activities.



Cash Flow Statement (extract)

                                                         Year            Year
                                                        ended           ended
                                                 30 June 2004    30 June 2003
                                                        $'000           $'000

Net cash outflow from operating activities             (1,732)              -
Returns on investments and servicing of finance           108               -
Taxation                                                    -               -
-------------------------------                     -----------     -----------
Net cash outflow before use of liquid resources
and financing                                          (1,624)              -
Financing                                               5,847               -
-------------------------------                     -----------     -----------
Increase in cash                                        4,223               -
-------------------------------                     -----------     -----------




Balance Sheet

                                                           At              At
                                                 30 June 2004    30 June 2003
                                                        $'000           $'000
Fixed assets
Exploration and mining rights                          28,456               -
Current assets
Debtors                                                   218               2
Cash at bank and in hand                                4,223               -
-------------------------------                     -----------     -----------
                                                        4,441               2
Creditors - Amounts falling due within one year           (46)              -
-------------------------------                     -----------     -----------
Net current assets                                      4,395               2
-------------------------------                     -----------     -----------
Net assets                                             32,851               2
-------------------------------                     -----------     -----------

Capital and reserves
Called up share capital                                 1,781              17
Share premium account                                   5,509               -
Capital reserve                                        27,034               -
Profit and loss account                                (1,473)            (15)
-------------------------------                     -----------     -----------
Total shareholders' funds                              32,851               2
-------------------------------                     -----------     -----------



Notes

1.                  The above financial information for the year ended 30 June
2004 is audited, with an unqualified opinion, and does not constitute statutory
accounts within the meaning of section 240 of the Companies Act 1985. The
financial information for the year ended 30 June 2003 has been extracted from
the accounts for that year, which has been delivered to the Registrar of
Companies and on which the auditors gave an unqualified opinion. Statutory
accounts for the year ended 30 June 2004 will be delivered to the Registrar of
Companies. It is expected that the Annual Report will be posted to shareholders
in mid November 2004 and the company's Annual General Meeting will be held on 8
December 2004.

2.                  The basic and diluted loss per share has been calculated by
reference to a loss, after taxation, of USD 1,458,000 (2003; USD 7,000 loss) and
the weighted average number of ordinary shares in issue of 69,853,282 (2003;
10,000).

3.                  The Directors do not recommend the payment of a dividend in
respect of this period (2003; nil)





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