Project Update

RNS Number:5507K
Marakand Minerals Limited
04 April 2005


                                                            London, 4 April 2005

                                KHANDIZA PROJECT
       Positive Completion of Environmental and Social Impact Assessment

Marakand Minerals Limited ("Marakand" or "the Company") is pleased to announce
the positive completion of the Environmental and Social Impact Assessment
("ESIA") on the Khandiza Project in Uzbekistan.

The ESIA has been prepared by independent consultants, Wardell Armstrong
International ("WAI"), in accordance with World Bank and international
standards. WAI concluded that there are no significant effects to the
environment with respect to water, air and land that would inhibit project
development. Further, the key socio-economic parameters were assessed
positively.

In their report WAI noted, "Existing formal and informal governance structures
will not be negatively affected by mine development, and may indeed be
enhanced." The report also states that no resettlement is required given the
extent of the existing infrastructure and that reactions to the Company's
development plans have been positive; "The potential exists for enhancement of
the local infrastructure through mine development...and that the potential
direct and indirect tax and employment contributions of mine development are
overwhelmingly positive."

Commenting on the report, Alasdair Stuart, Marakand CEO said, "I am delighted to
have completed this significant step toward the development of Khandiza within
the timeframe that we set ourselves. The first-rate outcome on both
environmental and social aspects reflects the good work that our team on the
ground has done and the rewarding efforts of undertaking extensive public
consultation in the communities where we will operate."

As reported in January 2005, the Uzbek State Committee of Nature Protection has
granted all the environmental approvals required at this stage of project
development. Discussions continue to progress with the Uzbek Government on the
final concession contract and the Company is confident of a successful outcome
in the near future.

(Ends)

Marakand Minerals is a mining exploration and development company focused in
Central Asia, it is quoted on the Alternative Investment Market (AIM) in London,
stock-exchange symbol MKD.L.

For further information please visit www.marakand.co.uk or contact:

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



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