Asacha Project Update

Trans-Siberian Gold plc

Asacha project update

London: 26 January 2011 - Trans-Siberian Gold plc ("TSG" or "the Company") (TSG.L)reports on the progress of construction at the Asacha site.

Underground mine development is continuing as planned. In 2010 mine development and preparation works, by-product extraction and exploration works amounted to 1,590 metres and more than 16,600 m3. Ore mined during mine development activities in this period totalled more than 20,500 tonnes; including the adit ore and the pre-production ore mined in the previous periods the ore stockpile at 31 December 2010 comprised more than 60,000 tonnes.

All the plant building's wall panels have been installed and the outside concrete walls completed. The first layer of roof panels has been installed. Although roofing work has been hampered by poor weather conditions and strong winds, half of the multi- layer roofing was in place by 31 December 2010 and the building's thermal protection work (placing of heat-insulating layer) is in progress.

Concrete works have commenced at the coarse ore bin site. The plant building's concrete flooring is almost complete and work on its inside walls is proceeding.

By 31 December 2010 the specialist contractor had completed the installation of the major plant equipment under the supervision of representatives of the Chinese manufacturer of the major plant equipment and the plant designer. The manufacturer and designer have reported their positive conclusion on the mills' installation.

The plant's internal lighting has been completed and installation of ventilation equipment is in progress.

The tailings storage facility's dam is under construction and work continues to lay the geomembrane. Delivery of the electrical equipment for the tailings pump station is expected by the end of January.

The buildings to house the water pump station and the firefighting station have been completed and are now awaiting delivery and installation of their respective pumps. The documentation to obtain the license for cyanide storage has been submitted to the authorities and the paperwork in respect of the permits for the fuel storage facility is being prepared.

The repair shop building is almost complete and is currently being used as a heated workshop for the prefabrication of ventilation and concrete parts and other items required for construction. The sewage treatment facility's technological piping is currently being installed.

Two diesel generators have been successfully started on a trial basis and the engineering systems at the power unit site are being arranged. Most of the power cables have been delivered to Vladivostok, for shipment by sea to Petropavlovsk-Kamchatskiy.

Constant efforts are being taken to remove snow from the construction site. Seasonal weather conditions are hampering the delivery of materials and equipment to the site but, at this stage, this is not expected to impact on the start of gold production around mid-year 2011.

Ends

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