Conroy Gld&nres Regulatory News (CGNR)

25 Feb 2010 07:00

25 February 2010 Conroy Diamonds and Gold P.l.c. ("the Company") Half-yearly results for the six months ended 30 November 2009 GOOD PROGRESS ON SEVERAL FRONTS

Conroy Diamonds and Gold Plc (AIM: CDG), the gold exploration and development company primarily focused on Ireland, announces its results for the six months ended November 30, 2009.

Highlights:

* Clay Lake sampling returns highest gold-in-soil values recorded by Company on its Irish exploration licences * Follow-up chip sampling in stream bed identifies 18m wide zone of gold mineralisation * Large, coherent zinc-in-soil anomaly outlined to south-east of Clontibret * Company raised €830,071 by share placings * Retained loss for the year €183,126 (2008: loss €202,464)

Post Period

* Wardrop Engineering appointed to undertake Clontibret scoping study * First drilling at Clay Lake returns good results, including 63m grading 0.62g/t gold * Company lists on Irish Enterprise Exchange (IEX)

Professor Richard Conroy, Chairman, commented:

"We are now moving beyond the exploration phase at Clontibret and Wardrop Engineering has commenced a scoping study to determine if the current JORC-compliant resource of just over one million ounces of gold can support a profitable mining operation. We are also making excellent progress at Clay Lake, with impressive first drilling results, whilst the discovery of a very large zinc-in-soil anomaly south-east of Clontibret brings a new dimension to our activities in this area.

However, our prime focus remains the delineation and development of our gold projects with the 30 mile long gold trend we have identified."

Chairman's Statement

I am pleased to report on the activities of your Company for the six months ended 30 November 2009, a period during which the gold price improved steadily, before reaching a new peak of over US$1,200/oz at the beginning of December 2009. Base metal prices also showed a welcome recovery in the period under review.

In terms of the wider stock market, the FTSE Index of AIM shares improved by over 50 per cent. from the lows reached in the first quarter of the year. Your Company's shares participated in this price recovery and we were able in the period to add to our cash resources through share subscriptions and placings.

Clontibret

Work programmes on our Irish exploration licences have continued to return very good results and, in the case of Clontibret, we have now moved beyond the exploration stage with the recent appointment of Wardrop Engineering to carry out a scoping study. This will determine if the current JORC-compliant resource of just over 1 million ounces of gold can support a profitable mining operation.

Whilst this study will primarily be related to Clontibret, it will also consider the possible implications presented by our other nearby gold discoveries at Clay Lake and Glenish.

Wardrop is a multi-disciplined engineering and consultancy firm that has been working in the global mining industry since the early 1960s and is at the forefront of gold mining expertise.

Clay Lake

During the period we have determined that the Clay Lake gold-in-soil anomaly, which we first announced in February 2009, is much larger and more coherent that the Clontibret target, 7km to the south-west. It has returned the highest gold-in-soil sample values (up to 1.53 gramme/tonne) recorded by the Company on its Irish licences, averaging twice those reported at Clontibret.

Chip sampling of rock exposed in stream beds in the northern corner of the soil anomaly returned positive results, and identified an 18m wide mineralised zone averaging 0.47 gramme/tonne gold, with individual samples assaying up to 1.69 gramme/tonne. Furthermore, the extent of this mineralised zone was not fully established as further chip sampling along trend was precluded by soil cover.

After analysis and interpretation of all the sampling data, we brought in a rig at the end of 2009 and completed two inclined diamond drill holes located approximately 450m away from the stream bed sampling. Given that exploration at Clay Lake is still at a very early stage, the recently announced drilling results are, in the Board's opinion, outstanding. They confirm the presence of a broad zone of gold mineralisation, with one hole returning an impressive 63m intersection grading 0.62 gramme/tonne gold from rocks similar to those exposed in the stream bed.

The drilling also showed that the mineralisation continues to a vertical depth of at least 110m and extends for several hundred metres along trend from the stream bed mineralisation. We are confident that much more will be revealed as exploration progresses on this exciting find.

Zinc Discovery

Our discovery of a very large zinc-in-soil anomaly to the south-east of Clontibret has added a new dimension to our activities in this area which features a number of historic, near-surface lead and zinc orebodies that supported small-scale production in the 19th century.

Infill sampling at this discovery to the south-east of Clontibret has resulted in three previously identified separate zinc-in-soil anomalies merging into one large, coherent anomaly covering an area of over 8km2. The samples returned an average zinc value of 466 parts per million ("ppm"), with a peak value of 4,047ppm, many times the area's typical background zinc-in-soil values of less than 200ppm. We believe that this anomaly is further evidence of the presence of a large, zoned metalliferous system in the area.

Outlook

Your Company is now moving into an exciting new phase of its development as the Clontibret scoping study gets underway. At the same time, we believe that our work at Clay Lake, though still at an early stage, indicates that this discovery could be of equal or even greater magnitude than Clontibret. The new zinc discovery to the south-east of Clontibret adds a new dimension to the area.

Although your Company cannot ignore the possibility that it has made a significant zinc discovery, our prime focus remains on the delineation and development of our gold projects within the 50km long trend we have identified on our Irish licences. We remain confident of achieving further success over the coming months.

Corporate

In December 2009, the shares of your Company were listed on the Irish Enterprise Exchange (IEX). We believe that this move will facilitate dealings for investors in Ireland and elsewhere who normally trade shares in Euro.

Finance

The results for the six months ended 30 November 2009 are set out below. The loss for the period was €183,126 (2008: loss €202,464).

During the period under review your Company raised €830,071, net of expenses, from investors by way of share placings, and I converted €325,000 of my loans to the Company into shares.

Your Board is considering various options to finance the next phase of the Company's activities.

Directors and Staff

I would like to thank my fellow directors, staff and consultants for their support and dedication, which has enabled the continued success of the Company. I look forward to the future with confidence.

Professor Richard ConroyChairmanFurther enquiries:Conroy Diamonds and Gold Plc Tel: 00 353 1 661 8958 Professor Richard Conroy Merchant John East Securities Limited (Nomad) Tel: 020 7628 2200 Simon Clements / Virginia Bull IBI Corporate Finance Limited (IEX Adviser) Tel: 00 353 1 637 7800 John Tuite City Capital Corporation Limited Tel: 020 3178 3399 Charles Dampney Lothbury Financial Limited Tel: 020 7011 9411 Ron Marshman / Michael Padley Hall Communications Tel: 00 353 1 660 9377 Don Hall UNAUDITED INCOME STATEMENT

FOR THE SIX MONTHS ENDED 30 NOVEMBER 2009

Six months Six months Year ended ended ended 30 November 30 November 31 May 2009 2008 2009 (Unaudited) (Unaudited) (Audited) € € € OPERATING EXPENSES (183,142) (202,478) (298,155) Other Income 16 14 36 LOSS BEFORE TAXATION (183,126) (202,464) (298,119) Taxation - - - LOSS RETAINED FOR THE PERIOD (183,126) (202,464) (298,119) Loss per ordinary share - Basic and (0.0015) (0.0019) (0.0028)diluted UNAUDITED BALANCE SHEETAS AT 30 NOVEMBER 2009 30 November 30 November 31 May 2009 2008 2009 (Unaudited) (Unaudited) (Audited) € € € Non-current Assets Intangible assets 9,166,965 8,297,538 8,736,915 Financial assets 2 2 2 Property, plant and equipment 19,515 26,921 24,791 9,186,482 8,324,461 8,761,708 Current Assets Trade and other receivables 32,933 44,110 24,982 Cash and cash equivalents 413,419 90,676 61,744 446,352 134,786 86,726 Total Assets 9,632,834 8,459,247 8,848,434 EQUITY AND LIABILITIES Capital and Reserves Called up share capital 4,285,935 3,170,649 3,170,649 Share premium 5,530,823 5,491,037 5,491,037 Capital conversion reserve fund 30,617 30,617 30,617 Share based payments reserve 508,143 359,117 433,630 Retained losses (3,149,156) (2,870,375) (2,966,030) Total Equity 7,206,362 6,181,045 6,159,903 Non-current Liabilities Trade and other payables: Amounts 1,567,701 1,831,111 1,928,473falling due after more than one year Total non-current liabilities 1,567,701 1,831,111 1,928,473 Current Liabilities Trade and other payables: Amounts 858,771 447,091 760,058falling due within one year Total Current Liabilities 858,771 447,091 760,058 Total Liabilities 2,426,472 2,278,202 2,688,531 Total Equity and Liabilities 9,632,834 8,459,247 8,848,434UNAUDITED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 30 NOVEMBER 2009

30 November 30 November 31 May 2009 2008 2009 (Unaudited) (Unaudited) (Audited) € € €

Cash (used by)/generated by operations (12,574) (18,768) 155,856

Tax paid - - -

Net cash (used in)/generated by operating (12,574) (18,768) 155,856 activities

Cash flows from investing activities Investment in mineral interest (430,050) (407,053) (786,164) Payments to acquire property, plant and - (2,098) (5,409)equipment

Net cash used in investing activities (430,050) (409,151) (791,573)

Cash flows from financing activities Issue of share capital, net 830,071 - -

Shareholders loan (repayments)/advances (35,772) 409,163 588,029

Net cash from financing activities 794,299 409,163 588,029 Increase/(Decrease) in cash and cash 351,675 (18,756) (47,688)equivalents

Cash and cash equivalents at beginning of 61,744 109,432 109,432 period

Cash and cash equivalents at end of 413,419 90,676 61,744period

Notes to the Financial Statements

1. Publication of non-statutory accounts

The financial information set out in this document does not comprise the statutory accounts of the Company.

2. Loss per share

The calculation of the loss per ordinary share of €0.0015 (2008: loss €0.0019) is based on the loss for the half year of €183,126 (2008: loss €202,464) and the weighted average number of ordinary shares on a basic and fully diluted basis during the period of 121,254,414 (2008: 105,688,297). Share options and warrants are not included in the calculation of fully diluted shares since the Company incurred a loss in both periods which results in these potential shares being anti-dilutive.

3. Dividends

No dividends were paid or are proposed in respect of the period ended 30 November 2009.

4. A copy of the half-yearly report 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.