Khandiza Progress Update

RNS Number:2814H
Marakand Minerals Limited
12 January 2005


                            Khandiza Progress Update

Marakand Minerals Limited ("Marakand" or "the Company") (MKD.L), the mining
exploration and development company focused in Central Asia, reports good
progress on the development of its Khandiza base metal project in Surkhandary,
Uzbekistan, and is confident it will finalise the form of project development
with the Uzbek government during Q1 2005.

Uzbek Governmental Decree #560, dated 30 November 2004, confirms approval for
the Khandiza project to proceed in 2005 as planned. Mining and environmental
approvals for the project have also been granted. The Khandiza project will
represent the single largest direct foreign investment into the Surkhandarya
region of Uzbekistan since the country's independence in 1991.

An independent Competent Person's Report, commissioned in November 2004, has
been completed and confirms there are no material omissions in the Company's
Feasibility Study on the Khandiza project. The report identifies a number of
areas where significant upside potential exists in increasing production rates
and plant recoveries.

Marakand is pleased to have Khandiza close to development at a time when current
metal prices result in a project NPV, as estimated by the Company, in excess of
US$200 million.

The project schedule remains on track and construction is due to commence in the
summer of 2005 with first production scheduled for 2006.

Ends.


Enquiries:

Marakand Minerals Limited                         Tel: [phone]
Alasdair Stuart, CEO                              Tel: [phone]
Joanna Solino, Investor Relations Officer
Buck-Bias Limited                                 Tel: [phone]
Alex Buck / Nick Bias


                      This information is provided by RNS
            The company news service from the London Stock Exchange

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