Sosandar Regulatory News (SOS)

11 March 2013

Orogen Gold Plc

("Orogen Gold", "Orogen" or "the Company")

2012 Full Year Results

Orogen Gold (AIM:ORE), the AIM quoted mineral exploration company with its flagship project in the historic gold mining district of Deli Jovan in Serbia, is pleased to announce its audited results for the year ended 31 December 2012.

Operational Highlights

·; 22 holes for 4,897 metres of exploration diamond drilling with trenching programme completed at the Gindusa Main Zone ("Gindusa") and Gindusa West Prospect ("Gindusa West")

o Assay results from underground sampling confirmed presence of high grade gold values in the Gindusa veins ranging from trace gold up to 63.4 g/t Au over 1m width in channel sampling

o Down hole intercepts of 22.2g/t Au over 0.5m, 16.25 g/t over 0.5m and 13.30 g/t over 1.0m at Gindusa

o New zone of gold mineralisation in a trench at Gindusa West 1.5km northwest of the historic mine, cutting eight metres averaging 12.3 g/t gold including a three metre zone averaging almost 1 oz of gold (29.6 g/t)

Financial Highlights

·; Completion of 55% earn-in to Deli Jovan in June 2012, in accordance with agreement with Reservoir Minerals Inc.

·; £1.2 million raised in October through share placing and subscription by Directors

·; £204,000 raised through issue of equity in December under Equity Financing Facility

Post-period Highlights

·; Highly prospective gold property optioned within emerging epithermal gold district in Armenia

·; WH Ireland appointed as sole Nomad & Broker

Ed Slowey, CEO of Orogen, commented today, "2012 saw the Company make significant progress towards its target of outlining a preliminary mineral resource at Deli Jovan, during what was universally considered a difficult economic climate for AIM-quoted junior explorers. The discovery of a new high grade gold zone at Gindusa West and the encouraging down hole intercepts at Gindusa have provided the Company with a solid base as it continues its first stage drilling programme across the mine area.

"The acquisition of what has the potential to be a significant epithermal gold system in Armenia evidenced the Company's strategy in identifying and acquiring early-stage opportunities in what is a rapidly emerging gold district in Europe.

"With funding in place for the planned work programmes in 2013, we are looking forward to keeping the market updated and delivering value to shareholders."

Enquiries:

Chairman's Statement

The year of 2012 was a very challenging time for junior gold exploration and project development companies. Despite such headwinds Orogen secured financing for the first drilling programme at the old Deli Jovan gold mining district in Serbia and reached the 55% equity milestone on time and on budget. Highlight of the 2012 exploration programme was the announcement in December 2012 of a new discovery west of the old Gindusa gold mine where a trench cut a three-metre wide zone assaying 29.55 grammes (almost ounce of gold) per tonne gold within a wider eight metre interval averaging 12.28 g/t. Financing for the next phase of drilling at the Gindusa Mine which will include trenching and drill testing of a newly discovered high-grade lode is secure and will commence in the coming months after the Spring thaw in Serbia.

We have now entered the second phase of the earn-in agreement on Deli Jovan where we can earn an additional 20% of the project by committing to a further CAD2 million exploration spend on the project by end December 2013.

As an exciting start to 2013 management were delighted to conclude negotiations in January on an earn-in agreement on the Mutsk gold project in Armenia as part of Orogen's strategy to seize prospective early-stage growth opportunities at a low entry-cost. The Mutsk gold project is within an emerging gold district only 30 kilometres from Lydian International's multi-million-ounce gold and silver Amulsar deposit.

The Group has sufficient cash resources to complete the currently planned 2013 exploration expenditures on Deli Jovan and Mutsk including the completion of the 75% earn-in to the Deli Jovan project.

At Deli Jovan we are proud of our achievements in 2012 and our excellent health and safety and environmental record. We continue to move forward on schedule and on budget in a measured and prudent way to manage investor risk as we probe for the best zones of gold mineralisation within this historic mining district.

We thank you all for your patience and support as we look forward to a stream of news flow in 2013 from Serbia and Armenia.

John Barry

Chairman

Chief Executive's Statement

2012 has been a very active year for Orogen Gold plc. We completed the underground refurbishment at the historic Gindusa and Rusman underground mines at our Deli Jovan gold exploration project in Serbia and carried out a detailed structural mapping and sampling programme there. We then undertook the initial drilling and trenching campaign on the property where we have made very encouraging progress. We are now poised to confirm the potential of the Deli Jovan project in the coming exploration season. Towards the end of the year we raised a total of £1,435,000 (before costs) in new equity financing that strengthened our balance sheet and secures our planned exploration work programmes for 2013.

During the year we put considerable effort into examining a number of potential additional projects as part of our stated plan to develop the Company. We were delighted to conclude negotiations on an earn-in agreement in the Mutsk gold project in Armenia just after the year end.

Deli Jovan earn-in with Reservoir Minerals Inc.

We achieved the 55% earn-in milestone on the Deli Jovan gold exploration project in Serbia in June 2012 following our completion of CAD1.5 million exploration financing of the project.

The 55% earn-in was completed on schedule and the expenditures incurred to date were in line with our original budget for the work programme that we set out when initiating the project. The payments made under the terms of the earn-in agreement with Reservoir Minerals Inc. were applied to acquire a 55%interest in Deli JovanExploration d.o.o, the Serbian company operating the Deli Jovan project. Deli Jovan Exploration d.o.o. has been included as a subsidiary in the Group's consolidated results from the acquisition date. 

We have now entered the second phase of the earn-in agreement where we can earn an additional 20% of the project by committing to a further CAD2 million exploration spend on the project by end December 2013. At the date of this report we have a cumulative spend of CAD 2,510,000 on Deli Jovan and we anticipate completing the 75% earn in during 2013.

Deli Jovan work programme

During the first half of 2012 we completed the opening of the former mine shafts at Gindusa and Rusman. These were de-watered and made safe and we carried out a mapping and sampling programme of the old mine workings extending down to 60 metres on two levels at Gindusa and 80m on three levels at Rusman during May 2012.

The results of this work were encouraging, particularly in relation to Gindusa. They confirmed historic reports and identified the presence of four mineralised quartz vein structures in the Gindusa underground workings. These are sub-parallel, trending NW-SE, dip from near vertical to steeply to the southwest and they occur within a shear corridor at least 80m wide. High grade gold-mineralised quartz-pyrite veins and lenses occur as pinches and swells along the fault structures, with individual lenses up to 30m in horizontal extent with greater apparent continuity in vertical extent. Typically these mineralised veins are 30-70 centimetres in width, up to in excess of 1m locally.

Assay results confirmed the presence of very high grade values in the Gindusa vein system, ranging from trace gold up to 63.4g/t Au over 1m width in channel sampling and up to 133.0g/t Au in more selective chip sampling. Sampling at Rusman also yielded anomalous gold results, albeit within more restricted mineral lenses.

Ginduša Mine drilling

Based on results of the underground work, the 2012 surface exploration drilling programme focussed on the Ginduša mine area. Outside the immediate areas of the old mines a combination of geological mapping, soil geochemistry and trenching was undertaken to define further drill targets and to make new discoveries within the property.

Eight profiles were drilled 25-50 metres apart covering a strike length of 250 metres. This represents the first drilling campaign undertaken at the prospect. Most of the drilling was focussed on testing the continuity at depth of the gold-bearing quartz-pyrite lodes and fault structures exploited in the old mine workings. Limited drilling also tested the potential for continuity of the lodes along strike. Drilling totalled 4,426.5 metres in the 18 holes completed. Assay values (down hole depths, uncorrected for intersection angle) include 16.25 g/t Au over 0.5m within a wider interval of 8.3 g/t Au over 1.0m (DE-1), 14.55 g/t Au over 0.5m within a wider interval of 4.97 g/t Au over 2.5m (DE-3), 9.73 g/t Au over 1.0m within a wider interval of 2.98 g/t Au over 4.7m (DE-4), 13.3 g/t over 1.0m within a wider interval of 4.05 g/t Au over 3.9m (DE-14), 22.2 g/t Au over 0.5m within a wider zone of 8.15 g/t Au over 1.7m (DE-15).

The drilling and subsequent modelling of the veins confirmed that the shear/vein system continues to at least the full 280m vertical depth drilled and is open to depth, with low-grade gold haloes occurring marginal to the main lodes.

A detailed overview of the Ginduša mineralised zones was carried out by a structural geological specialist. He commented that "the mineralised shear zone at the Ginduša Mine area comprises multiple quartz lenses and is likely to be steep plunging, with overall depth continuity, possibly to considerable depth". It was further concluded that "while it is possible to develop extensive shear zones laterally and vertically, gold grade will vary considerably when intersected in core."

Ginduša West drilling and trenching

At Ginduša West, 1.5km northwest of the Ginduša Mine, four surface diamond drill holes were completed to test the extension of a strongly mineralised gold vein, dipping at 50 degrees to the north, previously mapped and sampled by our JV partners, Reservoir Minerals, in an old shallow exploration adit. Soil anomalies in the area suggested that the vein system might be more extensive than apparent underground. Three holes (DE-GEA1, 2 & 4) were drilled on a single profile to establish the depth continuity of the vein. The drilling demonstrated that the mineralised vein zone continues down dip for approximately 100m, maintaining a width of about one metre, and remains open to depth. Historic gold grades from underground channel sampling ranged from 0.5 to 48.9g/t Au, while drill grades of up to 3.28 g/t Au over 0.5m width from 64.0-64.5m depth were encountered in Orogen hole DE-GEA1. Of particular interest was the discovery of two parallel 'blind' quartz-pyrite veins beneath the previously known vein. One of these veins intersected in DE-GEA1 yielded 6.75g/t Au over a 0.95m intercept from 90.65-91.6m. These new veins are open to depth and along strike, and additional 'blind' veins may remain to be discovered in the area.

Further evidence of previously unrecorded gold-bearing quartz veining at Ginduša West was obtained from trench TAG2, which was sited about 250m to the west of the drill profile to test a gold anomaly located by soil sampling. This encountered a wide zone of alteration and shearing of the host gabbro which contained partially oxidised pyrite mineralisation and quartz veining. Assays of continuous chip/channel samples through this zone returned strong gold values, including a 3.0m zone assaying 29.55g/t Au within a wider 8.0m interval averaging 12.28g/t Au. Follow-up of this zone will be a priority for Orogen and several other soil geochemical anomalies also remain to be tested in this area.

Preliminary drilling at the old Rusman mine has confirmed the conclusions from earlier underground mapping and sampling and has down-graded this prospect. Given the strong encouragement obtained on the northern segment of the shear belt at the Ginduša Mine zone and Ginduša West, including the new trench discovery, Orogen plans to focus its activities on this sector of the belt.

Mutsk exploration project in Armenia

In January 2013 the Group signed a Memorandum of Understanding with Georaid CJSC ("Georaid"), an Armenian registered company, granting exclusive rights to undertake a confirmatory due diligence exploration programme over the exploration licence held by Georaid covering the Mutsk gold prospect in southern Armenia. Mutsk is an early-stage gold exploration project and represents an opportunity to acquire a property with indications of significant gold mineralisation within an emerging epithermal gold district which includes Lydian International's major Amulsar deposit, located just 30km to the northwest. The Mutsk discovery is open-ended, untested to depth and potentially open-pittable. Initial shallow drilling by Georaid has intersected mineralisation assaying up to 20.4m @ 0.79g/t Au from 15.0 to 35.4m depth, within which a 5.0m zone assayed 2.75g/t Au from 21.0-26.0m (Hole B-5).

Minimum Phase I exploration expenditures of US$150,000 are planned for 2013 after which the Group has the option through continuing investment in the property of US$2.5million by end August 2016 to earn into 80% of the project.

Corporate

The loss for the year amounted to £651,000 (2011 £1,214,000). At 31 December 2012 the Group held cash resources of £1,621,000 (2011 £2,004,000).

The Group has sufficient cash resources to complete the currently planned 2013 exploration expenditures on Deli Jovan and Mutsk including the completion of the 75% earn-in to the Deli Jovan project.

Our Deli Jovan project is entering a very exciting phase in 2013. This is planned to include infill and extension drilling at the Gindusa Mine zone to establish the potential for a compliant mineral resource there, as well as follow-up trenching and drilling on the exciting new targets identified at Gindusa West. At the same time we will be investigating the potential of the Mutsk project which is currently unconstrained in size and presents the possibility of very attractive project going forward.

We look forward with excitement to the developments during 2013.

Edward Slowey

Chief Executive

Group statement of comprehensive income

For the year ended 31 December 2012

Group statement of financial position

As at 31 December 2012

Group cash flow statement

For the year ended 31 December 2012

Notes

1. Approval

Ed Slowey, CEO of Orogen, is a Competent Person as defined by various international instruments and takes responsibility for the release of the technical information in this announcement.

2. Financial Information

The financial information set out above does not constitute the Company's statutory accounts for the year ended 31 December 2012, but is derived from those accounts. The auditors have reported on those accounts; their reports were unqualified and did not draw attention to any matters by way of emphasis without qualifying their reports.

3. Annual Report and AGM

The annual report and accounts for the year ended 31 December 2012 will be posted to shareholders on 19 March 2013 and will be available from the Company's website at www.orogengold.com shortly.

The annual report incorporates notice of the annual general meeting which will be held at Finsgate, 5-7 Cranwood Street, London EC1V 9EE on 9 May 2013 at 12.00 noon.