Condor Gold Regulatory News (CNR)

9th July 2013

Condor Gold plc

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

Drilling Update on La India Project, Nicaragua.

Condor (AIM:CNR), a gold exploration company focused on delineating a large commercial reserve on its 100%-owned La India Project in Nicaragua, which hosts a CIM compliant Mineral Resource of 2.4 Million oz gold at 4.6g/t, is pleased to announce the completion of drilling on the America Vein Set and Central Breccia Prospect and the extension of the resource infill drilling at the La India Vein Set from the original 8000m to over 13500m with some 3600m remaining to be drilled. See map below of drilling zones.

Highlights

·; 8000m drilling programme completed on La India Open Pit resource area aimed at proving 800,000 oz gold in the Indicated Category.

·; 5500m drilling programme added on La India Open Pit resource aimed at proving over 1m oz gold in the Indicated Category ahead of a PFS.

·; 5486m drill programme completed at America to test for remnant wallrock gold mineralisation in the historic America Mine.

·; 2321m exploration drill programme at the Central Breccia Prospect completed.

Mark Child, Chairman and CEO commented:

"Condor's main focus is proving an independently verified high grade open pit resource of over 1M oz gold to the higher, Indicated level of confidence at La India Open Pit, in the next few months in preparation for a Pre-Feasibility Study. On the back of encouraging drill results, the current drilling has been extended by 5500m, using four diamond core drill rigs and is scheduled to be completed by the end August 2013, by which time circa 13500m of in fill drilling will have been completed on La India Open Pit area since the previous resource announcement in September 2012. The recently completed 5486m drilling on the America Vein Set and 2321m drilling on the Central Breccia Prospect were designed to determine whether these areas host small feeder pits to supplement the main La India Open Pit and also increase the size of the resource on La India Project. SRK Consulting (UK) Limited has completed several visits to La India Project in the last 12 months and will be tasked with producing independent gold mineralized resource statements to NI 43-101 standards once all assay results are received for the three aforementioned drilling programmes, and the geotechnical study required to determine the pit angles for La India Open Pit, is completed."

Table 1. Best new drill intercepts on La India Vein Set from 2366.90m of drilling.

True width is based on the current interpretation of the veins and may be revised in the future. Top ten intercepts ranked by grade multiplied by true width.

Table 2. Best new drill intercepts on the America Vein Set from 1114.50m of drilling.

True width is based on the current interpretation of the veins and may be revised in the future. Top five intercepts ranked by grade multiplied by true width.

Since the last gold mineral resource update was announced in September 2012 Condor has completed over 140 drill holes for more than 17000m of drilling on the Company's flagship La India Project. The majority of the drilling has been infill drilling on the La India Open Pit area designed to convert potentially open-pittable Inferred resource ounces to the more confident Indicated category. Smaller exploration drilling programmes have also been completed on the Central Breccia Prospect and the America Vein Set designed to test for open pit potential and increase the size of the gold resource at La India Project.

La India Vein Set hosts a resource of 12Mt at 4.0g/t for 1.5 Million oz gold including an open pit resource of 8.21 million tonnes at 3.6g/t for 954,000 oz gold of which 534,000 oz gold at 3.9 g/t is in the Indicated Category and 420,000 oz gold at 3.3g/t in the Inferred Category, and whilst 97,000 oz of the underground resource is Indicated with the balance Inferred.

Four drilling rigs are currently operating on the La India Open Pit area. The initial 8000m drilling programme designed to infill drill throughout the 800k oz gold open pit shell used in the Preliminary Economic Assessment ('PEA' - see announcement dated 5th March 2013) has been completed and the drilling programme is now being extended to provide Indicated level of confidence in the next Mineral Resource update to a greater depth and further along strike to the South in order to:

(1) assign Indicated level of confidence to all resource ounces that may fall within a larger open pit shell should the ongoing geotechnical study and/or drilling results prove that steeper pit walls can be supported and/or resource drilling results prove that the open pit can be larger than initially modelled, and

(2) test further along strike of a high-grade zone of gold mineralisation defined at depths of between 80m and 200m below surface at the southern end of the India-California structure where the gold mineralisation remains open and untested to the South.

The extended drilling programme will add approximately 5500m of additional drilling to the original 8000m programme and is already well underway with approximately 2000m completed to date. It is anticipated that the remaining 3500m of drilling will be completed in August.

Table 3. Significant drill intercepts for the latest 15 drill holes for 2366.90m of the current drill programme on the India-California veins.

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

A 5486.05m drilling programme on the America Vein Set has also been completed. The America Vein Set contains 2.11Mt at 6.0g/t for 405,000 oz gold, of which 288,000 oz gold is in the interconnected America-Constancia-Escondido veins which were exploited through underground shrinkage-stopage mining between 1938 and 1956 with an estimated 40% of the total gold production from the La India Mining District, equivalent to approximately 250,000 oz gold at 13.5g/t extracted by selective mining of the high-grade core of the veins.

The drilling programme included 33 drill holes for 2894.10m which targeted a 550m strike length of the America and Escondido veins to a depth of up to 180m down-dip from surface in the zone which had historically been exploited by narrow shrinkage-stoping mining but where remnant gold mineralisation was expected in the wallrock. The remaining 17 drill holes for 2591.95m were drilled through the wallrock of historic workings on the intercept between the America and Escondido veins and the Constancia Vein. This structurally complicated zone was initially targeted as a prospective setting for wide zones of gold mineralisation. An intercept of 2.70m at 9.38g/t gold in a breccia zone in the hangingwall of a 10.8m mine cavity in the initial drill hole (drill hole LIDC179 - see announcement dated 1st March 2013) appeared to support this model and following this encouraging initial intercept this zone was drilled at 50m drill spacing to a depth of over 300m down-dip from surface. Mapping and drill core logging has shown that at this structural triple junction the west-northwest striking America Vein, which dips at approximately 60° to the North-northeast flexes round along an 150m arc to a North-South strike and 60° dip to the East where it is known as the Escondido Vein. The structure at the arc appears to dilate and form a wide gold mineralised quartz breccias zone. Further gold mineralisation is added where the outside curve of the arc of the flexure is intercepted by the East-West striking Constancia Vein which dip steeply (75°-90°) to the North. At the intercept point the Constancia structure splays into multiple narrow high-grade veins and the flexure/intercept zone plunges to the East-northeast at approximately 60°. Assay results have been returned for 45 of the 50 drill holes, representing 4521.50m of drilling.

Table 4. Significant drill intercepts for the latest 7 drill holes for 1114.50 of the current drill

programme on the America Vein Set.

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

The Central Breccia, which was discovered by Condor geologists in 2011 has been defined within a 140m by 300m area at surface and returned a best drilling intercept of 45.80m at 4.24g/t gold from exploratory drilling undertaken in 2012 (see announcement dated 28th May 2012). Soil sampling in the area identified a number of gold anomalies within 1km of the Central Breccia Prospect. 2320.58m of drilling on the Central Breccia Prospect has been completed and the drilling rig has been demobilised. In order to allow an accurate interpretation, assay results for this drilling programme will be released when all assay results for the entire programme have been received. The drilling programme consisted of 13 drillholes for 1963.60m drilling on the Central Breccia Prospect itself and 3 drillholes for 356.98m testing the two principal soil anomalies in the vicinity. The drilling was designed to better define the continuity of gold mineralisation in the core mineralised zone already identified through trenching and exploratory drilling, and to better establish the extent of mineralisation along strike and at depth.

Following completion of the 17000m drilling programme on La India Open Pit an updated independent gold mineral resource estimation will be released once geological modelling and the ongoing geotechnical study is completed. When all assay results have been returned for the America and Central Breccia drilling an updated independent gold mineral resource will be completed on America, and a full geological interpretation and model of the gold mineralisation at the Central Breccia completed. If the model proves robust with sufficient continuity in gold mineralisation between adjacent drill holes then a maiden gold mineral resource will be estimated on the Central Breccia.

Figure 1. Location of the Drilling on the Central Breccia within the La India Project area.

Click on, or paste the following link into your web browser, to view the associated PDF document:

 http://www.rns-pdf.londonstockexchange.com/rns/8356I_1-2013-7-8.pdf

Competent Person's Declaration

The information in this announcement that relates to the mineral potential, geology, 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 eighteen years of experience in the exploration and definition of precious and base metal Mineral Resources. Luc English is a full-time employee of Condor Gold 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.

 - Ends -

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

About Condor Gold plc:

Condor Gold 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 CIM/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 CIM/JORC compliant resource base of 2,497,000 ounces of gold equivalent at 4.6 g/t in Nicaragua and an attributable 1,004,000 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 for Nicaragua, and Ravensgate and Geosure for El Salvador.

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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