Kryso is an emerging mineral exploration company that is principally focussed on exploring the gold and other precious metals deposits previously discovered in Central Asia during the Soviet Union era and then, where appropriate, bringing them into production.
Kryso, which has its head office in London, is a public company that was admitted to the AIM in December 2004 in order to continue funding the development of the Pakrut Gold Deposit, further explore the Pakrut Licence Area and to obtain and acquire other gold and base metal deposits in Tajikistan and elsewhere in Central Asia. The Group's executive directors and senior management are based in Dushanbe.

The Company's executive directors have a proven track record of operating in Tajikistan and they believe that Kryso Resources is the first foreign company to obtain a 100% interest in a mining and exploration project in the country.

From 1 April 2004, LLC Pakrut, a wholly owned subsidiary of the Company, was granted a licence and geological lease to explore and exploit the Pakrut Licence Area which comprises the Pakrut gold deposit and the surrounding 6,300 hectare exploration area located in the metalliferous southern Tien-Shan Fold Belt. This belt is reputed to have the second largest known gold resource after the Witwatersrand in South Africa.

The Group intends to conduct a feasibility study to assess whether the Pakrut gold deposit can be developed into a producing mine and also intends to explore the already identified mineral deposits and areas of mineralization in the Pakrut Licence Area.

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The Republic of Tajikistan is a landlocked mountainous country in Central Asia with a land area of approximately 143,100 square kilometres and was formerly part of the USSR. It borders with Uzbekistan (to the West), Kyrgyzstan (to the North), China (to the East) and Afghanistan (to the South).

For release at 15.00 GMT 20 December 2006

Kryso Resources plc (KYS)

Placing of shares and warrants

Kryso Resources plc, the mineral resources exploration and development company
based in Tajikistan, announces the formation of a strategic alliance with Great
Basin Gold Limited through the placing with Great Basin of new Ordinary Shares
at 10 pence per share and the issue of warrants at 15 pence per share.

Highlights

* Placing of 10 million new ordinary shares at 10p to raise 1 million before
expenses.

* Issue of 5 million warrants exercisable at 15p per share.

* Proceeds to be used to continue the exploration diamond drill programme at
the Pakrut Gold Deposit ("Pakrut"), simultaneously to complete the
feasibility study on Pakrut and to conduct a geophysical survey and drill
programme at the Hukas Nickel Copper project.

* A strategic alliance formed between Kryso Resources plc and Great Basin
Gold Limited which is part of the Hunter Dickinson Inc. group of companies.

* Great Basin would also have the right to appoint one director to Kryso's
Board of Directors and a technical advisor to the management team.

Commenting on the Placing, Vassilios Carellas, Chief Executive Officer of Kryso
Resources plc said: "Kryso is at a stage whereby additional funding is required
to continue with its operations to achieve the set goals. By bringing Great
Basin Gold onboard as a strategic partner, Kryso has resolved its financing
requirements and simultaneously acquired access to a renowned team of technical
expertise, which will greatly assist Kryso to develop its existing properties
and acquire additional properties in the region."

Summary

Kryso Resources plc ("the Company") announces that it has entered into an
agreement with Great Basin Gold Limited (TSX: GBG; AMEX: GBN; JSE: GBGOLD)
("Great Basin Gold") to complete a placing of 10,000,000 new Ordinary Shares at
10 pence per share to raise 1 million before expenses. This is a significant
equity fundraising for the Company and Great Basin Gold will own 15.24 per cent
of the Enlarged Issued Share Capital after the placing.

Under the terms of the placing Great Basin Gold will also be issued one Warrant
for every two shares issued in the placing, subject to receiving relevant
shareholder approval at the Company's next AGM. The Company's Directors will
support relevant resolutions by way of irrevocable undertakings to vote in
favour thereof.

The shares subscribed for by Great Basin Gold are subject to a lock-up for a
period of 12 months from the date of issue and this will apply to shares
subscribed for under the Warrants.

Great Basin would also have the right to appoint one director to Kryso's Board
of Directors and a technical advisor to the management team.

Great Basin Gold

Great Basin Gold is developing mining assets in the Witwatersrand Basin in
South Africa and the Carlin Trend of Nevada, USA. Great Basin has a healthy
balance sheet, is debt free with a strong working capital position.

Great Basin Gold is part of the Hunter Dickinson Inc. group of companies which
is an acknowledged leader in the Global Mining Industry. There are a total of
eight listed public companies in the Hunter Dickinson group which are involved
in exploration through to large scale mining, in a variety of metals including
Gold, PGMs and Base Metals.

The Hunter Dickinson group is proud that it has a team of multi-disciplinary
mining professionals behind every Hunter Dickinson company, composed of
industry leaders in the fields of geoscience, engineering, the environmental
sciences, finance and investment, property acquisition, regulatory and
government affairs, and community development. Hunter Dickinson Inc is
capitalised at over 1.6 billion Canadian dollars.

Reasons for the Placing and Use of Proceeds

The Directors propose to use the net proceeds of the funds raised pursuant to
the Placing to continue with the exploration diamond drill programme at Pakrut
and simultaneously complete the feasibility study on the Pakrut Gold Deposit.
The funds will also be used by the company to carry out an electromagnetic
survey at its Hukas Nickel Copper project as well as an exploration diamond
drill programme to test the known near surface mineralization.

Terms of the Placing

Pursuant to a share and warrant purchase agreement dated 18 December 2006
between Great Basin Gold and the Company (the "Agreement"), Great Basin Gold
has agreed to subscribe for 10,000,000 new Ordinary Shares of 1 penny each in
the capital of the Company at a subscription price of 10 pence per share.
Further pursuant to the Agreement, the Company has agreed to issue to Great
Basin Gold 5,000,000 warrants, each warrant giving the right to subscribe for
one new Ordinary Share at a price of 15 pence per share for a period of 24
months from the date of issue (the "Warrants"). The issue of the Warrants is
subject to the approval of the shareholders of the Company at the next AGM. The
Company undertakes to use its best efforts to obtain the relevant shareholder
approval.

Under the Agreement, Great Basin Gold is given a pre-emptive right to
participate in any new issue of shares by the Company pro-rata to its existing
shareholding, subject to certain exclusions, including the issue of shares in
respect of the acquisition of mining rights, real estate or a corporate
entities, and including the issue of shares pursuant to the exercise of
employee share options. Where any new issue of shares is proposed by the
Company, Great Basin Gold has 10 days in which to exercise the right which
otherwise lapses. The pre-emptive right is personal to Great Basin Gold and
does not transfer with the shares to be allotted to it under the Agreement. The
pre-emptive rights lapse after five years.

Pursuant to the Agreement, the Company has agreed to appoint a new director
nominated by Great Basin Gold. Once appointed, the nominated director will be
subject to retirement by rotation in the normal way.

The Agreement contains representations and warranties given by the Company to
Great Basin Gold as to the organisation, good standing, mineral rights, assets
and other matters relating to the Company and its business.

- ENDS -

For further enquires, please contact:

Kryso Resources plc -
www.kryso.com

http://www.greatbasingold.com/gbg/NewsReleases.asp?ReportID=163711&_Type=News-Releases&_Title=Great-Basin-Invests-In-Aim-Listed-Kryso-Resources-Gains-Entry-Into-Prospect...

21 Dec'06 - 03:42 - 812 of 813


Gentlemen,

This placing is obviously at a lower price than I personally would have liked - I had 30p in mind. But it is surely bullish at this level. The foreseeable future is secured. Kryso is no longer at the mercy of the whimsical end of the AIM market.

Simon Cawkwell

December 22, 2006

Kryso Resources Plays a Blinder With Its Strategic Alliance With Great Basin Gold.


By Jack Hammer



The management team at AIM listed Kryso Resources have at least one pre-requisite for working in Tajikistan experience. For one thing, chief executive Vassilios Carellas and finance director Craig Brown are both married to Tajik wives. More pertinent to the matter in hand, both worked for Nelson Resources when it owned the ZGC project that is now giving Avocet such a headache. Local Tajik director Abuali Ismatov also happens to own four vodka bottling plants, which over the years has no doubt helped to take the edge off the hard winters. He is a prominent business man and has vital political contacts.
Between them those directors and two other non-executives hold 38 per cent of the company. Nothing unusual about that, but there are some other quirks to the shareholder base. Not only does Kryso boast familiar funds Gartmore and RAB on the register, but also showing up, with 4.3 per cent of the company is Simon Cawkwell, aka Evil Kneivel, a man well-known in the London markets as an ardent and ruthless proponent of shorting. And 32 per cent of the shares are held by what company presentations simply term others, but which, according to Mr Carellas, comprise primarily of retail investors.

Thats an unusually high retail presence for an Aim miner, and on a randomly selected day in London Friday 15th December there had been twenty trades in Krysos shares before 2pm, a number that directors of some other companies might be thankful for. Even so, in the light of this years steady decline in value of Kryso shares, Mr Carellas still worries about liquidity and is contemplating a dual listing in Canada to tempt more punters in.

So what would they be buying? Well, at the moment Kryso presents two key propositions. The most advanced is the Pakrut gold deposit, which contains over 1.2million ounces in the Russian C2 and P1 categories, while the most exciting early stage property is the Hukas nickel, copper, cobalt and PGM prospect, due to be drilled next year.

Pakrut is currently being delineated via an underground drill programme operating out of old Soviet adits. Thats more expensive than drilling from surface, but the company gains time by not having to shut down during the severe winter months. To date Kryso has drilled 7,000metrs on Pakrut, with 3,500metres still to go under the current programme. Significant intersections include 40metres at 8.56 g/t, 33metres at 3.69 g/t and two 40metre plus intersections at over 2 g/t gold. Mineralization is open at depth and open to the east. Mr Carellas is hopeful that he can add significantly to the three ore zones identified by independent consultant Snowden in the companys competent persons report. Russian data, generated at a cost of US$5metres according to Mr Carellass estimate, recognises eight. Looking ahead the plan is for an initial open pit, followed in due course by an underground mine.

With the most recent drill core samples currently en route for independent assay by SGS Lakefield, Kryso ought to be able to put a JORC resource number on Pakrut by February. At the moment Mr Carellas is expecting something of the order of half a million ounces, measured and indicated. On current timelines the first gold pour will take place in the fourth quarter of 2008, with production ramping up to around the 70,000 ounces per year mark and average cash costs running at around US$300 per ounce.

In the background is the Hukas prospect, signed up in July 2006, a sulphide nickel occurrence with a strike length of over 5km. Its been drill ready since Soviet times, with average surface grades from trenching showing grades of 1.5 % nickel and 1 % copper. Its definitely worth a look, and diamond drilling commences next year.

But Krysos next big hurdle probably wont be related to the drill bit, but to money. That is why the recent announcement that Great Basin Gold , part of the Hunter Dickinson Group, has invested 1 million in Kryso giving it a 15.24 per cent holding, is so crucial. A strategic alliance has been agreed between the two companies and Great Basin will appoint a director to the board of Kryso as well as a technical adviser to the management team.

Mr Carellas reckons it will take a further US$30 million to get Pakrut into production so he has picked his partner well. Great Basin has a strong balance sheet and access to funds. Moreover it is led by Ferdi Dippenaar who was Bernard Swanepoels right hand man at the big South Africa gold producer Harmony Gold. Ferdi wants to spread his wings outside South Africa and he knows plenty about underground mining. Kryso now starts to look seriously interesting.

Up 6.49% this morning.

Simon Cawkwell - 22 Dec'06 - 15:15 - 824 of 824


sunny925,

My family are still sitting on roughly 5.5m Kryso. We have never sold a share. This deal with Great Basin is tremendous. I have no idea why the share price sits down here.

Simon Cawkwell

Aldwickk,

Thought I should submit a post because I didn't want to see a dozen by the same person!

Been in since Day 1 and, just like your good self, I am remaining faithful to The Co. Cause.

markusantonius,

Thanks, so you bought these at the issue price of 10p, am 1% down on these but if Simon Cawkwell as 5.5m and says they should be priced at 30p now and with the deal with Great Basin they are a much less risky investment also they have good contacts with the local goverment.

Yes, Aldwickk. Although I have to add that I've spoken with Mr. Cawkwell twice in the last 18 months and he was insisting "30p!" right from the outset and yes, he appears to sound as confident, as always! Hmm, I would like to think that us long term holders will be rewarded before too long?

The first one to post moneyam today.

Nice little tick up, this morning! :o)

Up 11% today on high volume, news on drill core samples ?

Some interesting trades today, maybe even a RNS soon regarding a stockholding.

Down 1.10%

UP 0.62 5.56 % on 400,000 volume.

Bid 12 offer 12.5, up 3.16% this morning.