Conroy Gld&nres Regulatory News (CGNR)

11 Nov 2008 07:00

11 November 2008 Conroy Diamonds and Gold Plc AIM: CDG FINAL RESULTS FOR THE YEAR ENDED 31 MAY 2008

Conroy Diamonds and Gold Plc ("Conroy" or "the Company"), the gold exploration and development company focused on Ireland and Finland, announces its final results for the year ended 31 May 2008.

Highlights:

* One million ounce deposit confirmed in Ireland * The JORC compliant resource lies within 20 per cent. of total target area * Mineralisation open to depth * Operating loss ¢â€š¬374,874: in line with expectations * Potential to increase resource in both Ireland and Finland * Net assets ¢â€š¬6,308,996

Richard Conroy, Chairman, commented:

"The 12 months ended 31 May 2008 has been a year of great achievement for your Company. Our success in confirming a gold deposit of at least one million ounces is, without doubt, an important milestone.

"The Company has expressed a firm belief that its exploration results point to the possible presence of a new gold province in the acreage covered by its licences in Ireland and the progress we have made in the past year has only strengthened this belief.

"Whilst the Directors believe that the one million ounces should be regarded as a minimum figure, it provides a basis upon which conceptual and pre-feasibility studies can be initiated as part of the process leading to the development of a gold mine in the Clontibret area."

Further enquiries:Conroy Diamonds and Gold Plc Tel: 00 353 1 661 8958 Professor Richard Conroy John East & Partners Limited Tel: 020 7628 2200 Jeffrey Coburn City Capital Corporation Limited Tel: 020 7842 5867 Charles Dampney Lothbury Financial Limited Tel: 020 7011 9411 Ron Marshman / Michael Padley

CHAIRMAN'S STATEMENT

I have pleasure in presenting your Company's Annual Report and Financial Statements for the twelve months ended 31 May 2008, a year of great achievement for your Company. Our success in confirming a gold deposit of at least 1 million ounces is, without doubt, an important milestone and one that I believe is even more significant when placed in the context of an eventful period for the world gold industry.

The definition of a one million ounce JORC-compliant gold resource in a politically stable country with excellent infrastructure, a skilled workforce and only 90 minutes by road from a capital city, is a significant achievement for your Company.

Whilst the obvious highlight was the rise in the gold price to a record US$1,011 an ounce in March 2008, (although it has subsequently retreated to the current trading range of US$700-US$800 an ounce), there were a number of other important developments. These included the decline in new mine production during 2007, with South Africa losing its leading position to China, and a fall off in several of the world's major gold producing areas such as the Eastern Goldfields of Western Australia, the Carlin district of Nevada and the Red Lake area of Ontario. This was accompanied by an increase in the costs associated with operating mines.

These trends have continued in the first half of 2008, with GFMS, a leading consultancy, indicating a 6 per cent. (70 tonnes) decline in global gold production and a further 20 per cent. rise in costs. In addition, South Africa is currently experiencing major power problems, that the Directors believe are likely to impinge on the mining industry for several years to come, particularly the deeper gold and platinum mines that require refrigeration.

Despite increased global exploration expenditure in recent years, one of the fundamental reasons that worldwide production is declining is that the number of major new discoveries in the past decade has reduced significantly. As a consequence, major gold producers have, increasingly been consolidating, by way of acquisition, in order to increase their reserve base and maintain annual production rates. This, however, does not lead to any increase in the global reserve base.

You will be aware that, for the past several years, your Company has expressed a firm belief that its exploration results point to the possible presence of a new gold province in the acreage covered by its licences in Ireland. The progress we have made in the past year has only strengthened this belief.

Our main focus has been the ongoing assessment and evaluation of our Clontibret gold target in Co Monaghan, culminating shortly after the financial year-end with the announcement that the discovery has indicated and inferred resources in excess of one million ounces of contained gold at relatively shallow depth. Your directors believe this is the first gold resource of this magnitude reported in Ireland or the UK.

The JORC-compliant mineral resource lies within only 20 per cent. of the total Clontibret target area, and infill drilling of this area is expected to increase both the size and grade of the resource. We are confident that drilling in the remaining 80 per cent. of the target area will add at least as much gold as we have already discovered at Clontibret. In addition, the mineralisation remains open at depth.

Using a 0.75 gramme/tonne (g/t) cut-off, the Indicated Resource at Clontibretnow stands at 11 million tonnes at a grade of 1.24g/t for 440,000 ouncescontained. Total mineral resources within the 20 per cent. area, at the samecut-off, amount to 25 million tonnes grading 1.28g/t for 1,030,000 ouncescontained.Indicated Resource Tonnes (million tonnes) 11.0 Grade g/t @ 0.75g/t cut-off 1.24 Resource ounces gold contained 440,000 Inferred Resource Tonnes (million tonnes) 14.0 Grade g/t @ 0.75g/t cut-off 1.32 Resource ounces gold contained 590,000Total 1,030,000

The definition of a one million ounce JORC-compliant gold resource, to an average depth of less than 150metres, in a politically stable country, with a mining tradition, excellent infrastructure, a skilled workforce and only 90 minutes by road from a capital city, is a significant achievement for your Company.

Whilst the Directors believe that the one million ounces should be regarded as a minimum figure, it provides a basis upon which conceptual and pre-feasibility studies can be initiated as part of the process leading to the development of a gold mine in the Clontibret area.

However, your Company has also identified several other substantial targets within its Longford-Down Massif licence area, each of which has returned initial sampling results that suggest they also have the potential to host gold deposits of a magnitude similar to Clontibret.

Whilst the main focus of your Company's activities is development of Clontibret and exploration/ delineation of other targets on its licences in Ireland, we also continue active exploration in the Central Lapland Greenstone Belt of Finland. This hosts several known gold deposits, including Agnico-Eagle's 2.5 million ounce Suurikuusikko deposit. Your Company's objective is to identify economic gold deposits in Finland that will complement its Irish gold assets.

Financials

The loss after taxation for the year ended 31 May 2008 was ¢â€š¬374,874 (2007 ¢â€š¬ 375,059) and the net assets as at 31 May 2008 were ¢â€š¬6,308,996 (2007 ¢â€š¬ 6,520,516). Cash at bank as at 31 May 2008 was ¢â€š¬109,432 (2007 ¢â€š¬105,954). As we move towards delineation and development your directors are considering how best to fund your Company's activities. Options being studied include joint venture and farm-out, as well as such other arrangements as may be appropriate for advancing the interests of your Company.

As in previous years, I have supported the working capital requirements of the Company. During the period under review I have advanced aggregate loans ¢â€š¬ 734,780. These have been made in accordance with a letter of support which has been renewed on 11 November 2008. The loans have been made on normal commercial terms.

The other directors consider, having consulted with the Company's Nominated Advisers, that the terms of the loans are fair and reasonable in so far as the Company's shareholders are concerned.

Auditors

I would like to take the opportunity of thanking the partners and staff of Deloitte & Touche for their services to your Company during the course of the year.

Directors, Consultants and Staff

I would also like to express my deep appreciation of the support and dedication of the directors, consultants and staff, which has made possible the continued progress and success which your Company has achieved.

Future Outlook

Your Company's exploration strategy has been highly effective in leading to the delineation of 1 million ounces of gold at Clontibret and to the discovery of other possible gold targets of similar magnitude in the region. We look forward with confidence to further success.

Professor Richard ConroyChairmanINCOME STATEMENT

FOR THE YEAR ENDED 31 MAY 2008

2008 2007 ¢â€š¬ ¢â€š¬ OPERATING EXPENSES (374,890) (376,320) Other Income 16 1,261 LOSS BEFORE TAX (374,874) (375,059) Taxation - - LOSS RETAINED FOR THE YEAR (374,874) (375,059) Loss per ordinary share - Basic and diluted (¢â€š¬0.0035) (¢â€š¬0.0038)BALANCE SHEETAS AT 31 MAY 2008 2008 2007 ¢â€š¬ ¢â€š¬ ASSETS Non-current Assets Intangible assets 7,830,219 7,136,877 Financial assets 2 2 Property, plant and equipment 29,934 32,104 7,860,155 7,168,983 Current Assets Trade and other receivables 36,229 37,707 Cash and cash equivalents 109,432 105,954 145,661 143,661 Total Assets 8,005,816 7,312,644 EQUITY AND LIAIBILITIES Capital and Reserves Called up and share capital 3,170,649 3,170,649 Share premium 5,491,037 5,491,037 Capital conversion reserve fund 30,617 30,617 Share based payments reserve 284,604 121,250 Retained losses (2,667,911) (2,293,037) Total Equity 6,308,996 6,520,516 Non-current Liabilities Trade and other payables: Amounts falling due 1,421,948 687,168after more than one year Total non-current liabilities 1,421,948 687,168 Current Liabilities Trade and other payables: Amounts falling due 274,872 104,960within one year Total Current Liabilities 274,872 104,960 Total Liabilities 1,696,820 792,128 Total Equity and Liabilities 8,005,816 7,312,644Cash Flow Statement

For the Year Ended 31 May 2008

2008 2007 ¢â€š¬ ¢â€š¬ Cash used by operations (159,261) (264,493) Tax paid - - Net cash used in operating activities (159,261) (264,493) Cash flows from investing activities Investment in mineral interest (561,640) (1,520,934) investment in subsidiary - (2) Payments to acquire property, plant and (10,401) -equipment Net cash used in investing activities (572,041) (1,520,936) Cash flows from financing activities Issue of share capital - 1,000,000 Shareholders loan advances 734,780 578,986 Net cash from financing activities 734,780 1,578,986 Increase/(decrease) in cash and cash 3,478 (206,443)equivalents

Cash and cash equivalents at beginning of year 105,954 312,397

Cash and cash equivalents at end of year 109,432 105,954

Notes to the Financial Statements

1. Publication of non-statutory accounts

The financial information set out in this preliminary announcement are abbreviated accounts as defined in Section 19 of the Companies (Amendment) Act 1986.

The financial information for the period ended 31 May 2008 have been extracted from the Company's financial statements to that date which have received an unqualified auditors' report but have not yet been delivered to the Registrar of Companies.

2. Earnings per share

The calculation of the loss per ordinary share of ¢â€š¬0.0035 (2007 - ¢â€š¬0.0038) is based on the loss for the financial year of ¢â€š¬374,874 (2007 - ¢â€š¬375,059) and the weighted average number of ordinary shares in issue during the year of 105,688,297 (2007 - 97,643,184).

Since the Company incurred a loss the effect of share options and warrants would be anti-dilutive.

3. Dividends

No dividends were paid or are proposed in respect of the period ended 31 May, 2008.

4. Copy of Accounts

A copy of the Annual Report and Financial Statements will be available on the Company's website www.conroydiamondsandgold.com and will be available from the Company's registered office, 10 Upper Pembroke Street, Dublin 2. It will also be forwarded to shareholders who requested a hard copy.