Conroy Gld&nres Regulatory News (CGNR)

28 Feb 2012 07:01

28 February 2012 Conroy Gold and Natural Resources plc ("Conroy" or "the Company") Half-year results for the six months ended 30 November 2011

Economics of Clontibret Gold Project transformed by updated Resource and Evaluation data

Conroy Gold and Natural Resources plc (AIM: CGNR; ESM: CGNR.I), the gold exploration and development company primarily focused on Ireland, announces its results for the six months ended 30 November 2011.

Highlights:

* Clontibret Gold Project Scoping Updated by Tetra Tech WEI Inc ("Tetra Tech") * Resource increased to over 600,000 ounces gold (Au) * Indicated category increased to over 250,000 ounces (Au) * Mine life increased to 11.2 years

* Gold in-situ averaging over 50,000 ounces per annum for first five years of

mine life

* NPV(8) increased to US$72.3 Million: IRR increased to 49.4 per cent

* Company raised £750,000 through subscription

* Shore Capital Stockbrokers Limited appointed as sole broker with immediate

effect

Commenting, Chairman, Professor Richard Conroy said:

"The results of the updated resource and evaluation by Tetra Tech transformedthe mine economics with in excess of a 100 per cent increase in contained gold,a substantial increase in gold production, a reduction in operating costs, anincrease in mine life to over 11 years, and a two year payback period."

For further information please contact:

Conroy Gold and Natural Resources plc

Tel:+353-1-661-8958

Professor Richard Conroy, Chairman Merchant Securities Limited (Nomad) Tel:+44-20-7628-2200 Simon Clements/Virginia Bull, Shore Capital Stockbrokers Limited (Broker) Tel:

+44-20-7408-4050

Jerry Keen/Bidhi Bhoma/Toby Gibbs IBI Corporate Finance Limited (ESM Adviser) Tel: +353-1-637-7800 Brian Farrell Lothbury Financial Services Tel:+44-20-7868-2010

Michael Padley/Michael Spriggs

Hall Communications Tel: +353-1-660-9377 Don Hall

Visit the website at: www.conroygoldandnaturalresources.com

CHAIRMAN'S STATEMENT

I am pleased to report on the technical and financial activities of your Company for the six months ended 30 November 2011, a period of further very positive progress.

During the period, Tetra Tech WEI Inc ("Tetra Tech") completed an updated evaluation of Conroy's Clontibret Gold Project using updated commodity prices, operating and capital costs and an updated resource model.

The update has transformed the mine economics of the project with an increaseof in excess of a 100 per cent in contained gold, a substantial increase ingold production, a reduction in operating costs, an increase in mine life toover 11 years, and a two year payback period. The new resource and evaluationwas developed by Tetra Tech to Joint Ore Reserves Committee ("JORC") standardand is an update on the scoping study previously undertaken by Tetra Tech. Theevaluation was based on a long-term gold price of US$1,372 per oz Au and on anew resource estimate based on infill drilling, assay results and updatedgeological interpretation. The new resource estimate, using a minimum miningwidth of 2 metres and a cut-off grade of 0.60g/t Au, shows a 25 per centincrease in tonnage to 11,709,700 tonnes and a 19 per cent increase in totalounces of gold to over 600,000 oz at 1.60 g/t Au (indicated 259,956 oz Au,inferred 341,148 oz Au) (see table below). The mineral resource was evaluatedfor mining potential using Whittle pit optimisation software.

Summary of Resource Estimate

Indicated Inferred Total Tonnes Au (g/ Ozt Tonnes Au (g/ Ozt Tonnes Au (g/ Ozt t) t) t) 4,926,900 1.64 259,956 6,782,800 1.56 341,148 11,709,700 1.60 601,104

Note: Contained metal estimates remain subject to factors such as mining dilution and process recovery losses

The Whittle evaluation showed a 120 per cent increase in contained gold withina conventional open pit configuration, a 9 per cent reduction in operatingcosts due to economy of scale, a reduction in stripping ratio from 11.8 to 9.4,a doubling of production rate from 400,000 to 800,000 tonnes per annum, adecrease in gold grade from 2.19 g/t Au to 1.53g/t Au, an assumed overallrecovery rate of approximately 85 per cent using a bio-oxidation process;in-situ gold averaging over 50,000 oz per annum in the first five years of minelife and an increase in mine life to 11.2 years. The increase in size andthroughput will increase capital costs to US$77.8M (from US$ 47.9M) but with areduction in payback period to two years.The economic evaluation was based on a pre-tax financial model, taking a basecase commodity price for gold of US$1,372 per ounce, this gave a 49.4 per centinternal rate of return (IRR) and a net present value (NPV), at an 8 per centdiscount rate, of US$72.3M. These are very encouraging results as your Companymoves towards the development of a gold mine at Clontibret.

Elsewhere exploration continued on the Company's other licences in the Longford-Down Massif. Seven additional prospecting licences in lithologies similar to those in which the Company has made its discoveries in Counties Monaghan and Armagh were acquired in Counties Clare, Tipperary and Kilkenny.

FinanceThe loss after taxation for the half-year ended 30 November 2011 was €203,752(2010: €213,504) and the net assets as at 30 November 2011 were €12,381,024(2010: €11,787,771). Cash at bank as at 30 November 2011 was €412,951 (2010: €2,178,075).During the period £750,000 was raised by issue of 20,689,685 ordinary shares of€0.03 at 3.625 pence per share ("Subscription Shares") together with 20,689,685warrants exercisable at 4.25 pence per share ("Warrants"). The SubscriptionShares were placed at 3.625 pence per share, a premium of 22% to the closingprice on the day prior the their issue. I personally subscribed forSubscription Shares with an aggregate value of £250,000.The Warrants can be exercised at any time from admission of the SubscriptionShares to the second anniversary of the admission of the Subscription Shares.The Warrants also contain a mandatory exercise clause if the closing price ofthe Ordinary Shares remains at 5.5 pence per share or higher for five or moreconsecutive business days. Outlook

The delivery of the updated Scoping Study on your Company's gold project atClontibret further enhances the economics of the project. Much remains to bedone but it is your Board's intention to bring in a mine at Clontibret as soonas possible. 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.

Yours faithfully, Professor Richard ConroyChairman 28 February 2012 INCOME STATEMENT FOR HALF-YEAR ENDED 30 NOVEMBER 2011 Six months Six months Year ended ended ended 30 November 30 November 31 May 2011 2010 2011 (Unaudited) (Unaudited) (Audited) € € € OPERATING EXPENSES (199,802) (208,972) (364,356)

Finance income - bank interest 542 5,070

5,764receivable Finance costs - interest on (4,492) (9,602) (69,378)shareholder loan LOSS BEFORE TAXATION (203,752) (213,504) (427,970) Taxation - - - LOSS FOR THE YEAR (203,752) (213,504) (427,970)

Loss per ordinary share - basic and (€0.0009) (€0.0011)

(€0.0020)diluted STATEMENT OF COMPREHENSIVE INCOME FOR HALF-YEAR ENDED 30 NOVEMBER 2011 Six months Six months Year ended ended ended 30 November 30 November 31 May 2011 2010 2011 (Unaudited) (Unaudited) (Audited) € € € LOSS FOR PERIOD (203,752) (213,504) (427,970)

Total income and expense recognised in

other comprehensive income - - -

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD - ENTIRELY ATTRIBUTABLE TO EQUITYHOLDERS

(203,752) (213,504) (427,970) Statement OF CHANGES IN EQUITY For the HALF-Year Ended 30 NOVEMBER 2011 Capital Conversion Share-based Retained Share Share Reserve Payment Earnings Total Capital Premium Fund Reserve (Deficit) Equity € € € € €

At 1 June 2010 5,713,935 6,273,383 30,617 582,656

(3,256,475) 9,344,116

Share issue 1,200,000 - - - - 1,200,000 Share premium - 1,382,645 - - - 1,382,645 Share-based payments - - - 74,514 - 74,514 Loss for the period - - - - (213,504) (213,504) At 30 November 2010 6,913,935 7,656,028 30,617 657,170 (3,469,979) 11,787,771 At 1 December 2010 6,913,935 7,656,028 30,617 657,170 (3,469,979) 11,787,771 Share-based payments - - - 74,512 - 74,512 - Loss for period - - - - (214,466) (214,466) At 31 May 2011 6,913,935 7,656,028 30,617 731,682 (3,684,445) 11,647,817 At 1 June 2011 6,913,935 7,656,028 30,617 731,682

(3,684,445) 11,647,817 Share issue 620,690 - - - - 620,690 Share premium - 241,756 - - - 241,756 Share-based payments - - - 74,513 - 74,513 Loss for the period - - - - (203,752) (203,752) At 30 November 2011 7,534,625 7,897,784 30,617 806,195 (3,888,197) 12,381,024 STATEMENT OF FINANCIAL POSITION AS AT 30 NOVEMBER 2011 30 November 30 November 31 May 2011 2010 2011 (Unaudited) (Unaudited) (Audited) ASSETS € € € Non-current Assets Intangible assets 12,845,738 10,612,546 11,759,028

Investment in Subsidiary 2 2 2 Property, plant and equipment 17,306 19,735 23,849 12,863,046 10,632,283 11,782,879 Current Assets Trade and other receivables 68,464 60,613 81,323 Cash and cash equivalents 412,951 2,178,075 749,459 481,415 2,238,688 830,782 Total Assets 13,344,461 12,870,971 12,613,661 EQUITY AND LIABILITIES Capital and Reserves Called up share capital 7,534,625 6,913,935 6,913,935 Share premium 7,897,784 7,656,028 7,656,028 Capital conversion reserve fund 30,617 30,617

30,617

Share based payments reserve 806,195 657,170 731,682 Retained losses (3,888,197) (3,469,979) (3,684,445) Total Equity 12,381,024 11,787,771 11,647,817 Non-current Liabilities Financial Liabilities 588,097 554,612 565,625 Total Non-current Liabilities 588,097 554,612 565,625 Current Liabilities Trade and other payables 375,340 528,588 400,219 Total Current Liabilities 375,340 528,588 400,219 Total Liabilities 963,437 1,083,200 965,844 Total Equity and Liabilities 13,344,461 12,870,971 12,613,661 CASh Flow Statement For the HALF-Year Ended 30 NOVEMBER 2011 Six months ended Six months Year ended ended 30 November 30 November 31 May 2011 2010 2011 (Unaudited) (Unaudited) (Audited) € € €

Cash flows from operating activities

Cash used in operations (194,641) (566,270) (567,558) Tax paid - - - Net cash used in operating (194,641) (566,270) (567,558)activities

Cash flows from investing activities Investment in exploration and (1,026,444) (749,812) (1,836,028)evaluation

Payments to acquire property, plant (883) (11,754)

(24,158)and equipment Net cash used in investing (1,027,327) (761,566) (1,860,186)activities

Cash flows from financing activities

Issue of share capital 862,446 1,895,105 1,895,105 Advances of shareholder loan 22,472 - - Repayment of shareholder loan (42,424) (42,424) - Bank interest received 542 5,070 5,764

Interest paid on shareholder loan - -

(329,402)

Net cash generated from financing 885,460 1,857,751

1,529,043activities

(Decrease)/Increase in cash and cash (336,508) 529,915

(898,701)equivalents Cash and cash equivalents at 749,459 1,648,160 1,648,160beginning of period

Cash and cash equivalents at end of 412,951 2,178,075

749,459period

Notes to the Financial Statements

1. Basis of preparation

The half-yearly financial statements have been prepared on the basis of therecognition and measurement requirements of International Financial ReportingStandards (IFRS) as adopted by the European Union (EU), and theirinterpretations adopted by the International Accounting Standards Board (IASB).The accounting policies used in the preparation of the half-yearly financialinformation are the same as those used in the Company's audited financialstatements for the year ended 31 May 2011.

2. Earnings per share

The calculation of the loss per ordinary share of €0.0009 (2010 - €0.0011) isbased on the loss for the financial year of €203,752 (2010 - €213,504) and theweighted average number of ordinary shares in issue during the year of237,361,005 (2010 - 193,797,820).

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 30 November, 2011.

4. Copies of Accounts

A copy of the Half-Yearly Report will be available on the Company's website www.conroygoldandnaturalresources.com and will be available from the Company's registered office, 10 Upper Pembroke Street, Dublin 2.