ORM.L Regulatory News (ORM)

28 September 2022

Ormonde Mining plc

("Ormonde" or "the Company")

Interim Results for the Six Months Ended 30 June 2022

Ormonde announces its unaudited interim results for the six months ended 30 June 2022.

Key points:

· Ongoing review of acquisition and investment opportunities across a number of jurisdictions

· Conditional sale of La Zarza assets (the "Sale") provides opportunity to further strengthen the Company's balance sheet in order to create shareholder value through acquisitions

· Following shareholder approval of the Sale, Company to become a cash shell - required to undertake a reverse takeover within six months

Operational Review:

New Projects

During the first six months of the year, the Board of Directors (the "Board") and its advisory team evaluated a range of projects located in a number of countries covering, inter alia, precious metal, precious stones, base metals and battery metals opportunities. While there are numerous early-stage exploration opportunities available in the mining sector currently, such investments carry a range of risk profiles, particularly those that may require significant upfront investment with little visibility over near or medium-term upside. With shareholder value in mind, the Board is looking to identify opportunities in which Ormonde's investment will have the ability to advance the project in a timely manner and enhance its profitability potential without taking on excessive risk.

La Zarza

On 29 July 2022, the Company announced that it had entered into a conditional agreement for the sale of its interests in the La Zarza Copper-Gold Project in Spain ("La Zarza") for a cash consideration of €2.3 million, payable as €800,000 on closing and three further payments of €500,000 each on the first, second and third anniversary of closing. The Sale is conditional on approval by Ormonde shareholders at an Extraordinary General Meeting ("EGM") to be held later today. The Company has received irrevocable undertakings from the Company's largest shareholder, Thomas Anderson, holding 24.41% of the Company's shares, to vote in favour of the resolutions in relation to the Sale.

Salamanca and Zamora Gold Projects

The three investigation permits that make up these gold exploration projects came up for renewal during July and September 2021. Applications to extend each permit for a further three years have been submitted to the mining authorities where they are currently being processed. The renewal of the permits will require further exploration commitments. This process can take a considerable length of time and carries no guarantee that the permits will be renewed. Ormonde's interest in the Salamanca and Zamora Projects on 30 June 2022 was 50.9% and 46.6% respectively.

Financial Review:

Interim Results

The Company reports a significantly reduced loss after tax for the six months ended 30 June 2022 of €363,000 (2021: €630,000 Loss). The reduction of €267,000 in the reported loss was primarily driven by the significant reductions in director and senior management salaries and the elective non-payment of director fees during the period.

As at 30 June 2022, the Company held €3.4 million of cash (€3.7 million at 31 Dec 2021), with a further €800,000 due on closing of the Sale and three further payments of €500,000 each on the first, second and third anniversary of closing.

EGM Recommendation and AIM Rule 15

Following shareholder approval of the disposal of the La Zarza assets, the Company would become a cash shell pursuant to AIM Rule 15 and the Euronext Growth Market rules, and as such will, within a period of six months and twelve months respectively from the date of the disposal, be required to make an acquisition or acquisitions which constitute a reverse takeover under AIM Rule 14 and the Euronext Growth Market rules. If no such acquisition or acquisitions are made, the Company's shares would be suspended from trading pursuant to AIM Rule 40 and the Euronext Growth Market rules.

The Board unanimously recommended that shareholders voted in favour of the resolutions relating to the Sale.

Brendan McMorrow, Chief Executive Officer, commented:

"The sale of our assets at La Zarza will be an important milestone for the Company and, following the approval by Ormonde's shareholders, would place the Company on an even stronger financial footing from which to execute on new opportunities. To release value from the assets at a premium to book value is a very satisfactory outcome for the Company and its shareholders.

Although we have not yet identified the optimal project for our next phase, I am encouraged by the quality and volume of the opportunities that we have reviewed and the strength of the newly constructed Board and its advisory team. Our balance sheet strength allows us the benefit of selectivity, ensuring that when we do move forward with a transaction, we expect it to be a highly attractive one."

For further information, please contact:

Ormonde Mining plc

Brian Timmons, Non-Executive Chairman

Tel: +353 (0)1 801 4184

Vigo Consulting (Investor Relations)

Ben Simons / Charlie Neish

Tel: 44 (0)20 7390 0230

Davy (Nomad, Euronext Growth Listing Sponsor and Joint Broker)

Barry Murphy

Tel: +353 (0)1 679 6363

Company website: www.ormondemining.com

Ormonde Mining plc

Consolidated Statement of Comprehensive Income

Six months ended 30 June 2022

Ormonde Mining plc

Consolidated Statement of Financial Position

As at 30 June 2022

Ormonde Mining plc

Consolidated Statement of Cashflows

Six months ended 30 June 2022

Ormonde Mining plc

Consolidated Statement of Changes in Equity

Six months ended 30 June 2022

Notes to the Interim Consolidated Financial Statements

1. Accounting policies and basis of preparation

Ormonde Mining plc ( the "Company") is a company incorporated and domiciled in the Republic of Ireland. The Unaudited Consolidated Interim Financial Statements ("the Interim Consolidated Financial Statements") of the Company, as at and for the six months ended 30 June 2022, comprise the Company and its subsidiaries (together referred to as the "Group").

The comparative information provided in the Interim Consolidated Financial Statements relating to the year ended 31 December 2021 does not comprise statutory financial statements. The audit opinion on the statutory financial statements for the year ended 31 December 2021 was unqualified. However, the auditors drew attention by way of an emphasis of matter paragraph to the material uncertainty relating to the carrying value of the La Zarza exploration and evaluation assets, which are classified as assets held for sale. These assets held for sale are as set out in the opening page to these Interim Consolidated Financial Statements now the subject of a conditional agreement for their sale.

The Interim Consolidated Financial Statements do not include all of the information required for full annual financial statements and should be read in conjunction with the audited consolidated financial statements of the Group as at and for the year ended 31 December 2021, which are available on the Company's website, www.ormondemining.com.

The financial information in this report has been prepared using accounting policies consistent with International Financial Reporting Standards ("IFRS") as adopted by the European Union. IFRS is subject to amendment and interpretation by the International Accounting Standards Board ("IASB") and the IFRS Interpretations Committee and there is an ongoing process of review and endorsement by the European Commission. These policies are consistent with those to be adopted in the Group's consolidated financial statements for the year ending 31 December 2022. The accounting policies applied by the Group in the Interim Consolidated Financial Statements are the same as those applied by the Group in the consolidated financial statements for the year ended 31 December 2021.

The Directors have prepared the Interim Consolidated Financial Statements on the going concern basis which assumes that the Group and Company will have sufficient resources to continue in operation for the foreseeable future, being a period of not less than 12 months from the date of signing of these statements. The Directors have prepared cashflow forecasts for the twelve month period to September 2023 and on that basis consider it appropriate to prepare the Interim Consolidated Financial Statements on the going concern basis. These statements do not include any adjustments that would result from the going concern basis of preparation not being adopted.

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The unaudited Interim Consolidated Financial Statements were approved by the Board of Directors on 27 September 2022.

Notes to the Interim Consolidated Financial Statements

2. Segmental analysis

An analysis by geographical segments is presented below. The Group has geographical segments in Ireland and Spain.

The segment results for the period ended 30 June 2022 are as follows:

Notes to the Interim Consolidated Financial Statements (continued)

3. Basic earnings per share

The basic and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:

Diluted earnings per share

For the six months to 30 June 2022, the share options are anti-dilutive and therefore diluted earnings per share is the same as the basic earnings per share.

For the six months to 30 June 2021 and the year ended 31 December 2021 the basic and diluted earnings per share are the same.

Notes to the Interim Consolidated Financial Statements (continued)

4. Share capital

5. Dividends

No dividends were paid or proposed in respect of the six months ended 30 June 2022.

6. Post balance sheet events

On 30 August 2022 the Company notified shareholders that is was posting a circular calling an extraordinary general meeting for the 28 September 2022 in relation to the approval of the sale of the La Zarza assets to La Zarza Mineria Metalica S.L.U..