Condor Gold Regulatory News (CNR)

20th December 2011

Condor Resources Plc

(''Condor'' or "the Company")

Drilling Update for the La India Project, Nicaragua

Highlights:

·; On La India Project, since the last drilling update announced on the 18th October 2011, assay results have been received for 11 additional holes, representing 3,530m of drilling.

·; 14,700m of drilling now completed in the year to date on La India Project. Assay results received for 11,905m representing 66 drill holes, the balance of the assay results are pending.

·; Multiple gold veins intercepted in several individual drill holes targeting the main La India Vein, proves there is a series of parallel veins in La India Valley

·; 41.22m (true width) at 1.15g/t, 12.33m (true width) at 1.22g/t, 19.91m (true width) at 0.94g/t, demonstrate open pit potential

·; High grade intercept of 2.04m (true width) at 25.4g/t highlights the economic potential of an underground mine

·; La India Project on target to increase JORC Code Mineral Resource to circa 1,500,000 gold from 1,255,000 oz gold at 6.1g/t in next few weeks.

Mark Child, Executive Chairman and CEO of Condor Resources plc, commented:

"The drill results from 21 drill holes for 5,274 m in the main La India Valley have all yielded highly encouraging gold mineralisation. Several drill holes have returned long drill intercepts of up to 41.22 m at 1.15 g/t of gold breccia in the California Vein. The California Vein has now been confirmed over an aggregate strike length over 1,000m; it lies parallel and within 50 m of the main La India Vein that has a JORC resource of 400,000 oz gold at 6.9 g/t. We remain confident of a maiden JORC resource on the California Vein in the forthcoming resource update, due in the next few weeks, when Condor anticipates it will increase its JORC Code Mineral resource on La India Project to 1,500,000 oz gold. La India structure may have open pit as well as underground potential if breccias, such as in central area in La India Valley, can be found close enough to the surface. The high grade intercept of 2.04 m (true width) at 25.4 g/t highlights the economic potential of an underground mine."

Condor (AIM: CNR), a gold and silver exploration company focused on proving a large commercial reserve at its La India Project in Nicaragua, is pleased to announce further significant drilling intercepts in the India Vein Set. The latest drill results further define both the multiple high grade veins of the India Vein and hanging wall zone, including the California Vein, and extend the strike length of the wide lower grade breccia zone first reported in the previous drill update on the 18th October 2011.

Condor has now completed twenty-one drill holes for 5,274 m in the India Vein and India hanging wall Zone. The drilling has extended and better defined the India Vein, which together with the intercepting Teresa-Agua Caliente-Arizona Veins contains a JORC Mineral Resource of 451,000 oz gold at 7.0g/t including 146,000 oz gold at 7.2g/t in the Indicated category with the remainder categorised as inferred (as previously reported). The latest drilling has also tested the hanging wall zone mineralisation at wide spacing over a 1000 m strike length where previous explorers had identified gold mineralisation but not demonstrated continuity along strike or down-dip. Assay results have now been received for all but one drill hole on the India and India hanging wall zone with some significant new intercepts from the southern part of India Vein and from the central part of the hanging wall zone.

Drilling results exceeding 1g/t gold that have been received since the last update on the 18th October are summarised in the following table and are discussed below.

True width is an interpretation based on the current interpretation of the veins and may be revised in the future.

La India Vein

All the latest drilling was designed to test the India Vein gold mineralisation to depth. The most significant assay results, 4.58 m (4.07 m true width) at 4.01 g/t from 245.36 m drill depth in drill hole LIDC079 and 0.37m at 8.56 g/t gold from 257.40m in drill hole LIDC084 indicate that high grade gold mineralisation is open to depth in the southern part of the India Vein. Drilling to depth at the northern end of the vein intercepted quartz stockwork and fine quartz breccia veins with lower grade gold intercepts suggesting that the southern and central parts of the vein are the more prospective areas for further deep drilling.

India Vein Hanging Wall Veins (California Vein)

The most significant new intersections are from the central part of the India structure where the veining becomes most intense with several close spaced veins including the main India Vein merging into a quartz breccia. In this zone it becomes difficult to differentiate one vein from another and the historic mine works appears to have deviated to exploit parts of the hanging wall structure rather than the India Vein. Follow-up drilling of a wide drilling intercept of 23.09m (20.93m true width) at 2.67g/t gold from 96.01m drill depth in drill hole LIDC067 announced on the 18th October 2011 returned further wide gold intercepts up to 300m along strike to the north.

1. Intercepts of 2.40 m (2.04 m true width) at 25.37 g/t from 143.00 m drill depth in drill hole LIDC074, and 13.50 m (12.33 m true width) at 1.23 g/t gold from 91.50 m drill depth, including 4.00 m (3.65 m true width) at 3.42 g/t gold in drill hole LIDC082 were returned from drilling on a cross section located 150m along strike to the north of LIDC067.

2. Intercepts of 58.50 m (41.22 m true width) at 1.15 g/t from 137.00 m drill depth in drill hole LIRD081, including 2.00m (1.41 m true width) at 7.19 g/t gold from 137.00 m and 6.00 m (4.24 m true width) at 3.55 g/t gold from 171.50 m were returned from drilling approximately 300 m along strike to the north.

Drilling 100 m along strike to the south of LIDC067 passed through old workings of the historic La India Mine where it is now believed that the mining deviated from the parallel India Vein to exploit the principal hanging wall vein, now known as the California Vein. This new interpretation infers that the high grade gold mineralisation in the hanging wall zone encountered in drilling continued in this direction as well for a total strike length of over 400m, prior to mining. The drill hole, LIDC083 which drilled through the old workings intercepted a wide low grade breccia zone in the footwall of the historic workings which returned 21.63 m (19.91 m true width) at 0.94 g/t gold from 140.17m drill depth. This intercept is believed to represent the un-exploited part of the wide hanging wall zone mineralisation. A brecciated quartz vein which assayed at 5.35 m (4.92 m true width) at 0.86 g/t gold from 175.23 m drill depth in drill hole LIDC083 is interpreted as a low-grade zone of the India Vein.

The latest drilling has also extended the southern strike extent of the hanging wall veins with an intercept of 9.15 m (8.37 m true width) at 1.51 g/t gold from 225.55 m drill depth in drill hole LIDC084, a depth of approximately 200 m below surface. This drill intercept clearly indicates that the California Vein is blind at surface as no vein was encountered by previous drilling through the hanging wall zone at a shallower depth of 50 to 100m below surface. At the northern strike extent of the India Structure the veins in the hanging wall zone appear to separate into multiple discrete narrow veins, as demonstrated in the Zopilote cross-cut adit where up to seven separate gold veins are recognised over a 260 m horizontal cross-strike interval (announced 6th September 2011), and confirmed in the latest drilling.

There is now sufficient sample density with demonstrated geological continuity to include the hanging wall mineralisation in the next Resource update that is currently underway.

Condor has now completed over 14,700m of a 20,000 m drilling programme on the La India Project, and received assay results for the first 11,905 m, representing 66 drill holes. Since the last drilling update announced on the 18th October 2011 assay results have been received for 11 additional holes, representing 3,530m of drilling. Assay results are pending for a further five drillholes on the Guapinol Vein, which were designed to extend the current resource to depth and include one drill hole which intercepted the vein in the vicinity of the projected intersection with the America Vein. The intersection of these two veins was highlighted as a conceptual target for a concentration in gold mineralisation in the structural report on the La India Project completed by SRK Consulting (UK) Limited in September this year. This target has been further tested by a vertical drill hole designed to test the intersection of the two veins at a depth of almost 400 m below surface at a location where both veins have demonstrated high grade gold mineralisation at shallower depths. Assay results are also pending for two drill holes completed in the America Vein approximately 75m below the old mine workings to test continuity of mineralisation to depth. Two drill holes have also been completed to test mineralisation in the Central Breccia where trench sampling has returned assays of 11 m at 2.67 g/t gold (see announcement dated 7th September 2011), more recently extended to 19m at 2.76 g/t gold, open across strike.

Competent Person's Declaration

The information in this announcement that relates to Exploration Results and database is based on information compiled by and reviewed by Dr Luc English, the Country Exploration Manager, who is a Chartered Geologist and Fellow of the Geological Society of London, and a geologist with sixteen years of experience in the exploration and definition of precious and base metal Mineral Resources. Luc English is a full-time employee of Condor Resources plc and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a Competent Person as defined in the June 2009 Edition of the AIM Note for Mining and Oil & Gas Companies. Luc English consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.

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About Condor Resources Plc:

Condor Resources plc is an AIM listed exploration company focused on developing gold and silver resource projects in Central America. The Company was admitted to AIM on 31st May 2006 with the stated strategy to prove up JORC Resources in Nicaragua and El Salvador. Condor has seven 100% owned concessions in La India Mining District ("La India Project"); three 100% owned concessions in three other project areas and 20% in the Cerro Quiroz concession in Nicaragua. In El Salvador, Condor has 90% ownership of four licences in two project areas.

Condor's concession holdings in Nicaragua currently contain an attributable JORC compliant resource base of 1,342,000 ounces of gold equivalent at 6.0g/t in Nicaragua and an attributable 1,008,000 oz gold equivalent at 2.6g/t JORC compliant resource base in El Salvador. The Resource calculations are compiled by independent geologists SRK Consulting (UK) Limited and Ravensgate.

Disclaimer

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

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