AGM Statement

26 May 2005 07:00

Falkland Gold and Minerals Ltd26 May 2005 26 May 2005 Falkland Gold and Minerals Limited AGM Statement At Falkland Gold and Minerals Limited's first Annual General Meeting ("AGM")this afternoon, Richard Linnell, Chairman, will make the following statement: "Following an initial period of heavy investment in plant, machinery andoperational infrastructure, the Company is well placed to increase drillingproductivity in the coming months. Drilling continued during April 2005 with over 1,300 metres completed on thefirst three of the initial 9 priority targets identified during Stage I.Drilling will now be focussed on the next 6 priority targets. Following itssuccessful commissioning in May, the second drill rig "Falklands 2" is expectedto achieve full output in June. The sample preparation area is also fully operational and core samples are beingprepared for despatch to the ALS Chemex analytical laboratories in Perth. Thefirst results are expected towards the end of June 2005. The GeoExplo Ltda survey team has completed the majority of the 1,500line-kilometre programme on ground magnetic geophysics and moved to the WestFalklands in early May to finish the survey work there. The Company is in a good financial position with over £8.4 million of cashreserves available as at 31 March 2005. This will finance the planned 24,000metre drilling programme covering all 23 targets identified during Stage I. The interim results for the 6 month period to 31 March 2005 are due to bereleased on 14 June 2005." Further information: Falkland Gold & Minerals LimitedRichard Linnell, Chairman +27 82 440 6710 Bell Pottinger Corporate & Financial Nick Lambert +44 (0) 20 7861 3232 This information is provided by RNS The company news service from the London Stock Exchange