Condor Gold Regulatory News (CNR)

9th May 2011

Condor Resources Plc

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

La India Project Update

High Grade Drill Intercepts from 12 drill holes

and

Second Drill Rig Commenced Work

Condor (AIM: CNR) is pleased to announce the assay results from the first 12 diamond core drill holes completed by the Company on the La India Project. The 12 drill holes for a total of 1,045m of drilling were drilled to test for strike and depth extensions to the existing resource at four localities: an infill between two resource blocks on the Guapinol Vein; the eastern and western strike extension of the America-Constancia resources; and the depth and eastern strike extension of the Tatiana Vein.

Condor is pleased to report that the initial 1,045m of drilling has discovered a new high grade shoot at the Constancia Vein as well as increasing the strike length and depth continuity of a high grade shoot at the Tatiana Vein.

Background

Previous mining and exploration data has shown that the gold mineralisation at La India Project is concentrated in high grade steeply plunging shoots within the epithermal veins, separated by narrower low grade zones. Drill results should show high grade assay results interspersed along strike by low grade assay results, which has been the case in the calculations of a JORC Code compliant resource of 988,000 oz gold, of which 290,000 oz gold at 7.6g/t is in the Indicated category and 698,000 oz gold at 6.0 g/t is in the Inferred category, on La India Project. Eleven of the twelve drill holes were drilled at 100 m intervals along strike of existing resource blocks where trench sampling has defined gold mineralisation at surface. These drill holes were designed to intercept the vein at a nominal 60 m below surface and were expected to intercept both high grade shoots and the intervening low grade zones. Any high grade shoots discovered by this shallow exploratory drilling is then followed-up by deeper drill holes designed to intercept the vein at up to 160 m below surface. The first 12 drill holes included only one of these deeper drill holes.

Constancia

The most encouraging results are from the three drill holes completed on the Constancia Vein, which have extended the strike of mineralisation by 300m to the east with a new high grade zone discovered in the easternmost drill hole which returned an intercept of 1.4m at 17.6g/t gold from 63.9m drill depth (drill hole LIDC023). The high grade sample has been confirmed by re-assaying in another laboratory and also by re-sampling the core with a quarter core sample which assayed at over 30g/t gold. Further drill holes have already been completed at depth below this intercept and also further along strike; assay results are pending.

Tatiana

At Tatiana an infill hole drilled between two pre-existing wide spaced drillholes returned a high grade intercept of 0.8m at 10.8g/t gold from 65.3m drill depth (LIDC029). This drill hole is located 100m along strike to the east of a drilling intercept of 5.2m at 10.4g/t gold, and 80m along strike to the west of a lower grade zone defined by a drill intercept of 1.6m at 2.96g/t gold. The new result thereby extends the known strike length of the high grade shoot by 100m. A second hole drilling beneath the pre-existing high grade intercept extended the mineralisation to depth with an intercept of 6.9m at 1.68g/t gold from 194.45m drill depth, including three higher grade intervals with a combined 2.25m at 3.66g/t gold (LIDC030). This is interpreted as representing the edge of the high grade shoot, which is interpreted as plunging to the east. A third hole drilled 100m along strike to the east of the existing resource block intercepted a low grade zone assaying 0.4m at 0.78g/t gold from 71.85m (LIDC028). Drilling further along strike where trench data indicates the top of another high grade shoot is currently underway.

Guapinol

Two drill holes testing a zone on the Guapinol Vein between two resource blocks returned a low grade intercept of 0.5m at 1.37g/t gold from 77.05m drill depth in drill hole LIDC019 and failed to intersect mineralisation in the other (LIDC020). No further drilling is planned on this low grade section of the Guapinol Vein.

America

Four drill holes completed on the northwestern strike extension of the America Vein each tested a depth of approximately 60m below surface beneath high grade trench mineralisation but above low grade drill intersections reported by a previous explorer. The drilling confirmed the reduction in grade with depth in this section of the America Vein over the 300m strike length tested. These results suggest that there is limited strike potential on the America Vein to the northeast, and no follow-up drilling in this strike direction is planned at this stage.

Second Drill Rig

A second diamond core drilling rig started drilling on the San Lucas-Capulin Vein on the 5th May. The Company announced on the 7th April that it would commence drilling by the end April, The slight delay is immaterial and was caused by the Easter holiday period. The San Lucas-Capulin Vein has not previously been drill tested despite high grade gold mineralisation recorded in historic grade control sampling on two levels over a 500m strike length, and more recent trench sampling confirming mineralisation along a 1,500m strike length. The current inferred resource of 24,000 oz gold at 4.7g/t is restricted to the historically mined area. The current drill programme will test the structure along the entire strike length and at depth below the mined area with the aim to significantly enlarge the existing resource by bringing all the trench data into the resource block and extending the resource to depth below the historic mine.

Exploration Programme

The recently completed 3D model and increased JORC resource at La India Vein to 400,000 oz at 6.9g/t has highlighted significant further potential for exploration. Condor plans to move one of the drilling rigs onto the La India Group of veins where the largest continuous resource in the District is located. Drilling will be designed to test the strike extensions of the main La India Vein as well as the conjoined veins that already contain inferred resources; Arizona, Teresa and Agua Caliente veins. The drilling will also test for the bulk mining potential of the many un-named veins that have been noted in underground mine, adit and drilling data. This phase of drilling will be followed-up by deep drilling below the historically mined area later in the year.

Mark Child, Chairman of Condor Resources, commented:

"The first 1,000m of drilling on La India Project has taken slightly longer than expected as the drill rig has moved between 4 locations as the Company's geologists test 4 separate veins with a view to focusing on veins that show the most promise. It is therefore highly encouraging that a drill hole on the Constancia Vein has returned an intercept of 1.4m at 17.6g/t gold and that a drill hole on the Tatiana Vein has returned a drill intercept of 0.8m at 10.8g/t gold increasing the strike length of mineralisation on the former by 300m and the latter by 100m. An increase in the strike length of mineralisation by drilling and trenching should increase the length of the resource by a similar amount. Condor has completed a further 500m drilling on the Constancia and Tatiana veins; assay results are pending. We do not intend to engage SRK Consulting to upgrade the current resource on La India Project until a minimum of 5,000m drilling has been completed. A second drill rig commenced a 1,500m drill programme on La India Project on 5th May 2011. It is our intention to have a total of 4 drill rigs, including a drill rig capable of drilling to a depth of 400m, on La India Project by the end of October 2011. Condor is in the process of recruiting 3 more geologists and an experienced field manager. Following the recent £3m equity funding from Macquarie Bank Limited, Condor has increased its planned exploration programme, approximately 25,000m of drilling is planned for La India Project with the aim of more than doubling the current total JORC resource of 1,029,000 oz gold."

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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For further information please visit www.condorresourcesplc.com or contact:

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 four 100% owned licenses and 80% of La India concession in La India Mining District; three 100% owned licences in three other project areas and 20% in the Cerro Quiroz concession in Nicaragua. In El Salvador, Condor has 100% ownership of four licences in two project areas.

Condor's concession holdings currently contain a JORC compliant inferred resource base of 1,092,000 ounces of gold in Nicaragua and 747,000 ounces of gold and 22 million ounces of silver in El Salvador. The Resource calculations are compiled by independent geologists Ravensgate, Geosure and SRK.

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.