Arkle Res Regulatory News (ARK)

22 June 2011

Connemara Mining Company PLC

Preliminary Results for the Year Ended 31 December 2010

Highlights:

·; Good results continue to flow from drilling in the Stonepark region in Limerick

·; Six drill rigs are working on the Connemara ground in Limerick

·; In 2011 the joint venture will drill 65 holes to delineate and expand the size of the discovery

·; Advanced stage negotiations ongoing to joint venture the Lough Sheelin block of licences.

·; Connemara is fully financed for current exploration plans

John Teeling, Chairman, commented:

"Current prices of over $2,000 US a ton makes zinc a valuable commodity and worth exploring for. This is particularly the case in Ireland which has the best discovery rates for zinc. Connemara is very active with exploration ongoing at our joint venture discovery at Stonepark near Limerick, at Thurles and at Lough Sheelin. There are good results in Stonepark, no base metals have been found at Thurles, while the Lough Sheelin ground is being joint ventured. Connemara is fully financed for current exploration plans."

www.connemaramining.com

Statement Accompanying the Preliminary Results

Connemara is an AIM listed, tightly focused Irish zinc explorer. Since its foundation in 2007, the Company has acquired quality exploration licences in key locations with potential for world class zinc deposits. Recognising that the discovery and development of any discoveries would require large long term funding Connemara has always seen partnerships with market leaders as an essential element of its success strategy. Our joint venture with Teck of Canada has resulted in the significant zinc discovery in the Stonepark area near Limerick city in southwest Ireland. In 2011 the joint venture will drill 65 holes to delineate and expand the size of the discovery. Adjacent to Stonepark, Xstrata/Minco have a very large and growing zinc discovery. Currently a prefeasibility study is ongoing on the Xstrata/Minco ground where a 24million ton reserve grading 10% combined zinc and lead has been reported. It is now almost certain that the next world class zinc mine will be developed in Limerick. Connemara holds 16 licences in the Limerick area.

Stonepark and Stonepark North Discoveries

At the time of writing six drill rigs are working on the Connemara/Teck block of licences. First discovered in 2007 a second high grade shallow zone, Stonepark North, was discovered in 2009. Throughout 2010 and into 2011 drill results have expanded this new discovery until now it is in excess of 800 metres long and 150 metres wide, laying flat at about 220 metres depth and containing good commercial grades of zinc and lead, including some grades above 20 per cent combined zinc and lead.

The good drilling results in 2009/10 and the increasing attraction of zinc, led Teck to propose an expanded drilling and exploration programme for 2011. Six drilling rigs are now working on the block. In addition advanced geophysical, airborne gravity and, in a rare event for Irish mining, seismic techniques have been deployed to better understand the nature of this discovery. The expensive geological techniques used are to better define the structures below the ground so to better target drill holes. Zinc discoveries in Ireland tend to come in zones or lenses. So it is with Stonepark. Initially it was thought that the Stonepark and Stonepark North discoveries, some 2.7 kms apart could be the one orebody. Drilling results suggest otherwise. Stonepark zinc lies below 300 metres while Stonepark North zinc lies around 220 metres. So they are separate zones. Intriguingly, there is a chance that the two zones do connect as low grade mineralisation has been discovered around 320 metres depth in the Stonepark North drill holes.

The current drill programme has two objectives - close in drilling to better define Stonepark/Stonepark North and distant drilling from 1 kilometre to 10 kilometres away to try to get an understanding of the geology and the potential size of an orebody. Encouraging results have come from an area 1 kilometre to the southwest of Stonepark North.

The Limerick discovery remains a work in progress. Results are very good but not yet definitive. It remains an exploration play. The current intensive drilling will provide a clearer picture by end 2011.

Other Exploration Activity

While the focus is on Limerick we continue to work on our 100% owned licences. The principal activity has been on the 5 block Lough Sheelin area and on the 3 block Thurles area. Since 2005 Connemara has explored the Lough Sheelin area located 25 kms from the giant Navan zinc mine. We are looking for a Navan lookalike. Navan has ore up to 140 metres thick. After an 11 hole drilling programme during 2008 and 2009 we focused, in 2010, on an Induced Polarization (IP) programme and on soil geochemistry. Targets have been defined. They are deep and costly to drill. We are close to finalising a joint venture on this block. If concluded it will bring expert knowledge and finance to the venture.

Work on our Thurles licences located less than 10 kilometres from the Lisheen zinc mine identified good targets. The Lisheen mine is due to run out of ore by 2015 so an adjacent low grade deposit could have potential. The holes drilled to date have produced poor results. We are reassessing the data to identify options.

Finance

As Teck has expanded their drilling programme in Limerick our cash commitment increased. Connemara pays 25 per cent of the costs of the joint venture. We could opt to dilute our percentage, but the opportunity in Limerick is deemed to be well worth the commitment of monies.

In July 2010 we raised £1 million at 20p and in February 2011 we raised £1 million at 20p plus a 12 month warrant at 35p.

Connemara is a very small company. At the end of 2009 there were only 15 million shares issued. After two fund raisings there is today 25 million excluding the warrants.

The Company is fully funded through 2011 and 2012 on current expenditure proposals.

Strategy

Exploration is a long term game. Once the euphoria of a discovery evaporates the hard work of turning a resource into a measured reserve begins. This takes time and money. Irish independent mining companies Connemara, Minco and Belmore have each made, what by world standards are, significant base metal discoveries. Turning these discoveries into commercial mining operations needs well funded strong partnerships with major companies who can access world markets. The Limerick discoveries have the potential to be very big and rich, but they must be proven. The only true lie detector in mining is a drill hole. Although a drilling programme can be costly and time consuming our experienced technical team can provide the Company with cost effective results. I have every confidence that patience will be well rewarded.

John Teeling

Chairman

22 June 2011

Consolidated Statement Of Comprehensive Income

for the year ended 31 December 2010

Consolidated Balance Sheet

as at 31 December 2010

Statement Of Changes In Equity

for the year ended 31 December 2010

Share premium

The share premium reserve comprises of the excess of monies received in respect of share capital over the nominal value of shares issued.

Share based payment reserve

The share based payment reserve arises on the grant of share options to directors and consultants under the share options plan.

Retained deficit

Retained deficit comprises accumulated losses in the current and prior years.

Consolidated Cash Flow Statement

for the year ended 31 December 2010

Notes:

1. Accounting Policies

There were no changes in accounting policies from those set out in the Group's Annual Report for financial year ended 31 December 2009. The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.

2. Loss per Share

Basic and diluted loss per share are the same as the effect of the outstanding share options is anti-dilutive.

3. Intangible Assets

The above represents expenditure on projects in Ireland and Zimbabwe. Included in the group intangible assets is €5,000 (2009: €Nil) of directors' remuneration which was capitalised during the year.

The group's activities are subject to a number of significant potential risks including:

The realisation of this intangible asset is dependent on the discovery and successful development of economic reserves, including the ability of the Group to raise finance to develop the projects. Should this prove unsuccessful the value included in the balance sheet would be written off.

The directors are aware that by its nature there is an inherent uncertainty in such exploration and evaluation expenditure as to the value of the asset. Having reviewed the carrying value of exploration and evaluation of assets at 31 December 2010, the directors are satisfied that the value of the intangible asset is not less than carrying value.

4. General Information

The financial information set out above does not constitute the Company's financial statements for the year ended 31 December 2010. The financial information for 2009 is derived from the financial statements for 2009 which have been delivered to the Companies Registration Office. The auditors have reported on 2009 statements; their report was unqualified with an emphasis of matter in respect of considering the adequacy of the disclosures made in the financial statements concerning the valuation of intangible assets, financial assets and amounts due by group undertakings. The financial statements for 2010 will be delivered to the Companies Registration Office following the Company's Annual General Meeting.

A copy of the Company's Annual Report and Accounts for 2010 will be mailed to all shareholders shortly and will also be available for collection from the Company's registered office, 162 Clontarf Road, Dublin 3, Ireland. The Annual Report may also be viewed at Connemara Mining Company PLC's website at www.connemaramining.com.