Arkle Res Regulatory News (ARK)

28th June 2016

Connemara Mining Company

("Connemara" or "the Company")

Final Results for the Year Ended 31 December 2015

Connemara Mining Company today announces its results for the year ending 31 December 2015.

Ends

Enquiries:

www.connemaramining.com

Statement Accompanying the Final Results

Connemara is an active explorer in Ireland with 35 gold and zinc licences. A gold drilling campaign is ongoing on our ground in Donegal. Connemara has joint ventures with Teck Resources of Canada on most of our zinc licences and with Hendrick of Canada on our Wicklow/Wexford gold licences.

The prices of both metals have rallied strongly so far in 2016. Gold is touching $1,300 an ounce while zinc is close to $1,900 a tonne. At these prices exploration can be an attractive speculation. Particularly, in areas with good title, fair taxation, the rule of law and, ideally, good prospective geology. Ireland ticks all of these boxes for zinc while gold potential is slowly emerging. For over 50 years Ireland has been recognised as one of the leading, zinc provinces in the world. Some of the world's biggest zinc discoveries in recent decades have been made in Ireland beginning with the Tynagh mine, 50 years ago the then biggest discovery in Europe; followed by the giant Tara mine still the 5th biggest world producer 40 years after start-up; followed by the world class Lisheen mine, finally exhausted in 2014.

There has not been a commercial gold mine in Ireland in over a thousand years apart from the small Omagh mine. This is likely to change in the coming years as the Dalradian discovery in Tyrone containing over 3m ounces is developed.

The primary exploration activity of the Company is on our Inishowen block of 5 licences covering 187 sq km. The focus is on gold. Previous explorers found gold in streams and in rock samples. Connemara has conducted 4 campaigns on the ground which has narrowed the target to one farm. We conducted grid sampling to identify the best places to drill. Three wide spaced holes intersected numerous veins carrying gold. One of the intercepts was 3.05 metres wide grading 5.8 grams of gold per tonne (g/t) in drillhole 16-MR-03 from 23.05 metres to 26.10 metres. A follow up programme of 4 holes spaced 100 metres apart, each 250 metres and drilled at a 45 degree angle is ongoing to test both depth and continuity. Further drilling is likely.

The Wicklow/Wexford area where we have 5 licences has been a gold area for hundreds of years. The famous or infamous gold rush of the late 18th century was just to the North of our holdings. The principals and professionals in Connemara have long exploration experience of the area. They managed to acquire ground they thought to be prospective. Sampling, geophysics and drilling have shown extensive gold bearing rock. Drilling results from earlier programmes include 19.9g/t Au over 0.4 metres at Knocknalour (DD2554-1) and 0.5m of 18.4g/t at Tombreen (DD2558-3). A private Canadian company, headed by legendary gold prospector, Dale Hendrick, farmed into the licences and spent up to $500,000 on aeromagnetic surveys, geophysics and sampling. The work reinforced much of the earlier results and identified a series of drill targets. The implosion of the prices of junior explorers on the Toronto Stock exchange has made it difficult to raise the funds to drill. Hendrick need to spend up to $1 million to earn a 75% interest in the licences. Connemara is informed that sufficient funds have been raised to enable some drilling in 2016.

Zinc is a metal with many uses such as galvanising, die casting, electronics. Demand is strong in developing economies and stable or slowly declining in first world economies. World growth rates are 4% a year led by India, China, Brazil and Africa. Supply is at best sluggish. Many big mines are exhausted or soon will be. Wood Mackenzie predict a supply/demand deficit. It takes seven to ten years from discovery to production. One would have thought that this picture would spur exploration. But in fact exploration is at a low level. The explanation is simple. The world economic crisis from 2008 onward has seriously weakened most major miners. During the booming early 2000s companies overused available debt to buy and/or develop expensive assets. When prices fell and demand weakened highly leveraged companies suffered. They continue to suffer. What expenditure could be cut was cut. Exploration budgets are easy targets.

So it is with our joint venture partner, Teck Resources. Once one of the world's greatest zinc companies they have been laid low by investments areas other than base metals.

Teck knows zinc and knows Ireland. They first joint ventured with Connemara in 2005 on the Stonepark block of licences in Limerick. This block abuts the Pallasgreen block where Glencore have discovered significant quantities of zinc - 42 million tons inferred at 8% zinc/lead.

In 2007 Teck made the first of a number of discoveries in Stonepark. Over the subsequent four years three separate highgrade zones were discovered. This type of geology is typical of Irish zinc - separate zones or pods. What is needed is one or more big zones preferably high-grade. In total, to date, Teck have drilled 135 holes but do not yet have a commercial resource. In the past few years Teck have done very limited exploration. In the current year their budget for Stonepark is essentially limited to keeping the ground in good standing. Teck have spent over €8 million on the project so far. They are operator and control 76.6% of the joint venture. On required expenditure to maintain the ground Connemara must pay their share. We can dilute by declining to participate in any other spending. Connemara would like to see more activity on the block. Our experts believe there is more zinc to be discovered. Teck are aware of our policy and have indicated that they may have a drilling budget by end 2016.

In recent years the exploration focus of Teck has moved to the Irish midlands where they acquired a substantial block of licences. They approached Connemara with an earn in proposal on the five licences held by the Company in the Oldcastle/Lough Sheelin area. This area has for decades been thought to be geologically analogous to the setting of the giant Tara zinc mine some 30 km to the east. Exploration on the area in the 1970s discovered about 2.5 million tons of zinc ore. Of eleven holes drilled by Connemara 5 contained zinc. But it became apparent that the target strata were 800 metres and deeper. Holes of this depth cost €100,000 plus each.

Connemara joint ventured with Teck in 2012. The deal requires Teck to spend €1.35 million to earn 75%. Teck have done extensive geophysical and geochemical work on the block and in 2015 drilled two deep holes both of which contained lead zinc mineralisation. Further drilling is needed. When this happens is a function of the Teck budget for Ireland. The earn in has a way to go so Connemara is not liable for any expense.

Connemara holds 100% of 4 licences in the vicinity of the now closed Lisheen zinc mine. One, the Rapla block, has similarities to Galmoy some 2 km away. The other three, the Thurles block to the south of Lisheen, were thought to hold great potential. We did extensive geophysical and geochemical work and drilled 4 holes without success. These three licences are likely to be surrendered, we will hold Rapla.

As part of our gold exploration we obtained 10 licences, the Raphoe block, in Donegal to the west of the Dalradian gold discovery in Tyrone. High gold soil values and recent aeromagnetic data indicated potential. Early stage prospecting on the block produced weak results. It is likely that Connemara will concentrate their efforts on the Inishowen licences.

Future

The immediate future is focused on gold in Donegal. Drilling results are expected to be available in Q3 2016. Later in the year we expect to see work begin on our Wicklow/Wexford block of gold licences. Zinc exploration is at a standstill as our partner has a very limited budget. We continue to look at prospecting opportunities. We think the Rapla licence near Lisheen has big potential. We have identified and applied for some other ground prospective for zinc.

Our share price, after declining by 99% to less than 0.5p, has shown signs of life rising to 2.5p. We raised money at 2p to fund our gold drilling programme. Successful drill results will lead to more drilling which may need more funds.

Our ongoing saga with a former stakeholder has not reached a happy conclusion. Despite winning a court case, getting full costs and going through on the taxing master we were unable to get paid. The company which owned the shares is in liquidation. We are in discussions with the liquidator.

Connemara is a small tightly controlled company with only 76 million shares issued, has very good exploration ground and good partners with the best technology expertise and experience in gold and zinc.

Our 100 per cent owned gold exploration is going well and holds out promise. Results to date are positive. Drilling results will be available in the coming weeks and months.

John Teeling

Chairman

28th June 2016

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CONNEMARA MINING COMPANY PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2015

STATEMENT OF CHANGES IN EQUITY

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015

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 financial years.

CONSOLIDATED CASH FLOW STATEMENT

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015

Notes:

1. Accounting Policies

There were no changes in accounting policies from those used to prepare the Group's Annual Report for financial year ended 31 December 2014. 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 loss per share

The earnings and weighted average number of ordinary shares used in the calculation of basic loss per share are as follows:

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

3. Intangible Assets

The above represents expenditure on projects in Ireland. Included in the Group intangible assets is €Nil (2014: €10,000) of directors' remuneration which was capitalised during the year.

In 2012 the Group entered into an agreement with Teck Ireland Limited ("Teck"), a subsidiary of Teck Resources Limited, which gives Teck the option of earning a 75% interest in licences held by the Group in Cavan/Meath. Teck have to spend €1.35 million on the licences by 2018 in order to earn the option to acquire 75% interest. As per the agreement the licences have been transferred into a new company, Oldcastle Zinc Limited. As at 31 December 2015 Teck had completed €897,725 worth of expenditure. As per the agreement upon Teck completing €550,000 worth of expenditure 343,500 ordinary shares in Oldcastle Zinc Limited were to be issued to Teck. The shares were issued on 20 February 2015 giving Teck a 51% interest in the company.

In 2007 the Group entered into an agreement with Teck Cominco which gave Teck Cominco the option to earn a 75% interest in a number of other licences held by the Group. Teck Cominco had to spend CAD$3m to earn the interest. During 2012 the relevant licences were transferred to a new company, TILZ Minerals Limited, which at 31 December 2015 was owned 23.44% (2014: 23.79%) by Limerick Zinc Limited and 76.56% (2014: 76.21%) by Teck Ireland Limited. The Group's share of expenditure on the licences continues to be capitalised as an exploration and evaluation asset. The Group is subject to cash calls from Teck Ireland Limited in respect of the financing of the ongoing exploration and evaluation of these licences. In the event that the Group decides not to meet these cash calls its interest in TILZ Minerals Limited may be diluted accordingly.

The realisation of the intangible assets is dependent on the discovery and successful development of economic reserves which is subject to a number of risks as outlined below. Should this prove unsuccessful the value included in the balance sheet would be written off to the statement of comprehensive income.

The Group's exploration activities are subject to a number of significant and potential risks including:

- uncertainties over development and operational risks;

- compliance with licence obligations;

- liquidity risks; and

- going concern risks;

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 2015, the directors are satisfied that the value of the intangible asset is not less than carrying value.

4. Share Capital and Share Premium

Allotted, Called-Up and Fully Paid:

5. Annual General Meeting

The Company's Annual General Meeting will be held on 28th July 2016 in the Westbury Hotel, Grafton Street, Dublin at 10:00 am.

6. General Information

The financial information set out above does not constitute the Company's financial statements for the year ended 31 December 2015. The financial information for 2014 is derived from the financial statements for 2014 which have been delivered to the Companies Registration Office. The auditors have reported on 2014 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, investment in subsidiaries and amounts due by group undertakings. The financial statements for 2015 will be delivered to the Companies Registration Office.

A copy of the Company's Annual Report and Accounts for 2015 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 will shortly be available for viewing at Connemara Mining Company PLC's website at www.connemaramining.com.