Llechfraith Target

- 40 samples taken from Level 4

- 25 samples processed to heavy mineral concentrates

- Most of which contain sulphides, including gold

- Concentrates sent to independent laboratory for assaying

Dolgellau Gold Exploration Project

- Airborne geographical survey has been completed

- Data verification and interpretation in progress

Waste Tip

- Near-term plans to carry out trenching

- Then completing the application for an exploitation license

George Frangeskides, Executive Chairman, commented:

"We have been making really good progress at Clogau as well as over our extensive regional gold exploration ground. The key piece of news in this release is that we have filed a notification of our intention to carry out bulk sampling at the Llechfraith Target, our No.1 gold target within the Clogau mine system. The filing of this notification follows on from the fact that we have now largely completed our assessment of the newly dewatered No.4 Level and found it to be in good condition overall, allowing us to move ahead with the detailed planning and layout of the bulk sampling programme below No.4 Level.

"In that regard, we have also now completed a substantial sampling programme on No.4 Level. The sampling of the existing development will provide us with valuable information to assist in the precise siting of the development layout for the bulk sampling below No.4 Level. While it is certainly a positive that we have seen a significant sulphide content in the samples tabled in our Processing Plant to date, we will need to await the publication of the assay results from our first batch of heavy mineral concentrates in the coming days.

"In other developments, on further analysis our technical team has decided to carry out a further bulk sampling programme at the Waste Tip before we submit a planning application for exploitation of the tip. While it is a little frustrating not to be able to crack on with the planning process, as we had intended to by now, on reflection we think this is the right approach overall. Finally, we are really pleased to have completed the airborne geophysical survey over some of our stand-out regional gold targets and look forward with anticipation to seeing the results of the data evaluation in due course."