Conroy Gld&nres Regulatory News (CGNR)

28 Feb 2011 07:00

28 February 2011 Conroy Gold and Natural Resources plc ("Conroy" or "the Company") Half-yearly results for the six months ended 30 November 2010 Positive Results from Scoping Studies Economic Resource Indicated

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 2010.

Highlights:

* Scoping Studies by Wardrop at Clontibret gold prospect continued * Further positive drilling results from Clay Lake * Company raised €1,895,105 through a share placing and subscription * Retained loss for the year €213,504 (2009: loss €183,126)

Post Period

* Positive results on both financial and technical grounds from Scoping Studies * Economic resource indicated - production of 24,000 oz per annum estimated * Infill drilling and pre-feasibility studies to proceed * Potential for a multi deposit strategy

Commenting, Chairman, Professor Richard Conroy said:

"The positive results from the independent Scoping Study by Wardrop indicate that the Clontibret gold project is viable and provides a sound technical and financial foundation to move forward towards development. I believe further expansion of the resource is likely and the projecthas the potential for a multi deposit strategy.

"With a viable deposit, on only 20per cent.of the target area, combined with very positive drilling results from the Clay Lake target and with the possibility of other gold bearing targets along the trend we have a very exciting prospect, in a stable part of the world, where the management have great expertise."

Dear Shareholder

I am pleased to report on the technical and financial activities of your Company for the six months ended 30 November 2010, a period of further very positive progress for your Company, and the results post period of the Scoping Study.

During the period under review Wardrop Engineering Inc ("Wardrop") progressed the Scoping Study at your Company's Clontibret gold target. As announced on 7 February 2011, the results of the study have now been received and are positive on both financial and technical grounds indicating that we have an economically viable target, on less than 20 per cent. of the overall target. Exploration continued elsewhere on your Company's licences with drill holes at Clay Lake yielding gold in bedrock on what is potentially a much larger deposit than Clontibret.

In addition, during the period, your Company raised approximately €1.9 million net of expenses.

The Joint Ore Reserves Committee ("JORC") Standard Scoping Study by Wardrop was focussed on the Tullybuck-Lisglassan area which comprises approximately 20 per cent. of your Company's Clontibret gold target. Wardrop recommend that due to the positive outcome, infill and step-out drilling along strike together with metallurgical studies be carried out and that the potential for a multi deposit strategy is worthy of further evaluation.

Wardrop's study assumed the mine is a conventional open pit operation supporting a production of about 24,000 oz per year with a seven year mine life. The study focussed on high grade lode zones and higher grade zones within the stockwork that were over two metres totalling about 9.3 million metric tonnes, at an average grade of 1.7g/t gold using a cut off grade of 0.6g/t gold. Wardrop assumed a processing rate of 400,000 tonnes per year and a gold recovery of approximately 88 per cent. Overall resources within the area amount to more than 1 million oz of gold.

Using a base commodity price for gold of US$1,144 per ounce, this derived a 17.7 per cent. Internal Rate of Return ("IRR") and a Net Present Value ("NPV"), at 8 per cent. discount rate, of US$14.4 million. If recent gold prices are reflected, a rate of 20 per cent. over the base case is applicable - US$1,373 gives an IRR of 58.3 per cent. and an NPV of US$77.9 million.

The Scoping Study indicates that the Clontibret project is economically viable and provides a sound technical and financial basis to move forward to the next stages of the project in the knowledge that the ore system remains open, that further expansion of the resource is likely and that a multi deposit strategy is worthy of evaluation.

Seven kilometres to the Northeast of Clontibret lies the Clay Lake gold target where assay results from the step-out drilling showed that each of seven holes drilled so far in the top corner of a soil anomaly hit gold mineralisation. These results support the view of your Board that Clay Lake may be even more prospective than Clontibret and that your Company is beginning to prove that this area may become a new gold mining district.

Finance

The results for the six months ended 30 November 2010 are set out below. The loss for the period was €213,504 (2009: loss €183,126).

During the period under review your Company raised approximately €1.9 million, net of expenses, from investors through a share placing and subscription and I converted €687,540 of my loans to the Company into shares.

Outlook

The delivery of positive financial and technical results from the Scoping Study at Clontibret is independent confirmation of your Board's long held belief that Clontibret is a commercially viable project that it is steadily moving down the road to production. Potentially we have significantly higher resources within the identified trend - we expect further drilling both at Clontibret and at other targets, in particular Clay Lake, to further expand the 1 million oz JORC resource.

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 ConroyChairman28 February 2011Further Information: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 XCAP Securities PLC (Broker) Tel: +44-20-7101-7070 John Grant/Karen Kelly/David Lawman IBI Corporate Finance Limited (ESM Adviser) Tel +353-1-604-4968 John Tuite Lothbury Financial Services Tel: +44-20-7868-2567 Michael Padley/Michael Spriggs Hall Communications Tel: +353-1-660-9377 Don Hall

Visit the website at: www.conroygoldandnaturalresources.com

UNAUDITED INCOME STATEMENTFOR THE SIX MONTHS ENDED 30 NOVEMBER 2010 Six months Six months Year ended ended ended 30 November 30 November 31 May 2010 2009 2010 (Unaudited) (Unaudited) (Audited) € € € OPERATING EXPENSES (218,574) (183,142) (290,522) Other Income 5,070 16 77 LOSS BEFORE TAXATION (213,504) (183,126) (290,445) Taxation - - - LOSS RETAINED FOR THE PERIOD (213,504) (183,126) (290,445) Loss per ordinary share - Basic and (€0.0011) (€0.0015) (€0.0021)diluted UNAUDITED BALANCE SHEETAS AT 30 NOVEMBER 2010 30 November 30 November 31 May 2010 2009 2010 (Unaudited) (Unaudited) (Audited) € € €Non-current Assets Intangible assets 10,612,546 9,166,965 9,802,468 Financial assets 2 2 2 Property, plant and equipment 19,735 19,515 14,424 10,632,283 9,186,482 9,816,894 Current Assets Trade and other receivables 60,613 32,933 56,381 Cash and cash equivalents 2,178,075 413,419 1,648,160 2,238,688 446,352 1,704,541 Total Assets 12,870,971 9,632,834 11,521,435 EQUITY AND LIABILITIES Capital and Reserves Called up share capital 6,913,935 4,285,935 5,713,935 Share premium 7,656,028 5,530,823 6,273,383 Capital conversion reserve fund 30,617 30,617 30,617 Share based payments reserve 657,170 508,143 582,656 Retained losses (3,469,979) (3,149,156) (3,256,475) Total Equity 11,787,771 7,206,362 9,344,116 Non-current Liabilities Trade and other payables: Amounts 554,612 1,567,701 1,284,576falling due after more than one year Total non-current liabilities 554,612 1,567,701 1,284,576 Current Liabilities Trade and other payables: Amounts 528,588 858,771 892,743falling due within one year Total Current Liabilities 528,588 858,771 892,743 Total Liabilities 1,083,200 2,426,472 2,177,319 Total Equity and Liabilities 12,870,971 9,632,834 11,521,435unaudited Cash Flow StatementFor the SIX MONTHS Ended 30 NOVEMBER 2010 30 November 30 November 31 May 2010 2009 2010 (Unaudited) (Unaudited) (Audited) € € €Cash flows from operating activities Cash used by operations (561,201) (12,574) (150,092) Tax paid - - -

Net cash used in operating activities (561,201) (12,574) (150,092)

Cash flows from investing activities Investment in mineral interest (749,812) (430,050) (945,021) Payments to acquire property, plant and (11,754) - (206)equipment

Net cash used in investing activities (761,566) (430,050) (945,227)

Cash flows from financing activities Issue of share capital, net 1,895,105 830,071 3,000,632 Advances of shareholder loan - 80,000 190,000 Repayment of shareholder loan (42,424) (115,772) (508,897) Net cash from financing activities 1,852,681 794,299 2,681,735 Increase/(Decrease) in cash and cash 529,914 351,675 1,586,416equivalents

Cash and cash equivalents at beginning of 1,648,160 61,744 61,744 period

Cash and cash equivalents at end of 2,178,074 413,419 1,648,160period

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 €0.0011 (2009: loss €0.0015) is based on the loss for the half year of €213,504 (2009: loss €183,126) and the weighted average number of ordinary shares on a basic and fully diluted basis during the period of 193,797,820 (2009: 121,254,414). 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 2010.

4. A copy of the half-yearly report will be available on the Company's website www.conroygoldandnaturalresources.com.