Baomahun Preliminary Assessment Update

25 May 2010 AIM: CLF / TSX: CFG

Cluff Gold plc

("Cluff Gold" or the "Company")

Baomahun Gold Project and Preliminary Assessment (Scoping Study) Update

Cluff Gold, the dual AIM/TSX listed West African-focused gold mining company announces that following the receipt of positive additional assay results it is in the process of updating the resource position of the Baomahun project, located in Sierra Leone. The resource update will include additional data from recent holes which have confirmed continuity of known mineralisation in all directions, as well as intersecting a new zone outside the current optimised pit outlines.

Highlights:

·; Encouraging assay results received since the announcement made on 9th April 2010;

·; Hole DDH 316 intersected 38 metres at 5.43 g/t Au including 10 metres at 10.5 g/t Au; and

·; Resource update currently underway to be completed in Q2 2010.

Douglas Chikohora, Technical Director of Cluff Gold commented: 

"We are delighted by the positive assay results. We are firmly on course for achieving our timetable to prove up our Baomahun asset. We expect to announce the revised resource estimation in the next couple of weeks and the Preliminary Assessment (Scoping Study) in June. At present, our belief is that Baomahun could become a much larger deposit and as a consequence, our priority is to focus our attention on this project. The airborne survey commenced at the beginning of May and preliminary results from this are encouraging."

As announced on 9th April 2010, the Company is now updating the Baomahun resource following receipt of additional assays results from the on going drilling programme, which are summarised in the table below:

The true thickness of the mineralisation may vary from 40% to 70% of the intersected widths.

Drill cores for assaying were taken at a maximum of one metre intervals and were cut with a diamond saw. One half of the core was placed in sealed bags and sent to the Company's sample preparation facility at Baomahun, Sierra Leone. The core samples were then crushed to minus 4mm and split, with approximately 1.5kgs of sample pulverised down to 95% passing 106 microns. Approximately 120 grams of the pulverised sample were then shipped to the SGS Laboratories (which are independent of the Company) in Siguiri, Guinea, and Tarkwa, Ghana, where the samples were analysed for gold by fire assay using a 50g charge. As part of the Company's QA/QC procedures, internationally recognised standards and blanks were inserted into the sample batches.

Baomahun Airborne Versatile Time-Domain Electromagnetic (VTEM) Survey:

The VTEM survey has now commenced as announced on 9th April 2010. This system is capable of detecting the sulphides, pyrrhotite and arsenopyrite, at depth. These sulphides are known to be associated with high gold concentration in the areas which have been drilled to date. The survey is being conducted in order to identify potential drill targets along the rest of the prospective trend and north of the resource area.

Baomahun Preliminary Assessment (Scoping Study):

Operating and capital costs have now been received from the consultants. The updated resource model will be used to generate new mine schedules. The Company is on course to complete the preliminary assessment in Q2 2010 as previously announced.

About Cluff Gold

Cluff Gold is focused on the identification, acquisition and development of gold deposits in West Africa that are amenable to open-pit mining and low cost production techniques. The Company has assembled a portfolio of mineral interests at various stages of development in Côte d'Ivoire, Burkina Faso and Sierra Leone. Cluff Gold progressed from being an explorer to a producer in Q1 2008 and is expected to produce a total of 100,000 ounces of gold in 2010 from its Angovia Gold Mine in Côte d'Ivoire and its Kalsaka Gold Mine in Burkina Faso. Cluff Gold is actively evaluating known satellite deposits to expand the resource base at both mines. The Company is also pushing forward with the pre-feasibility study at its wholly-owned Baomahun project in Sierra Leone where a measured and indicated resource estimated to contain over 1.0 million ounces of gold, in accordance with NI 43-101, has been announced to date (380,000ozs at 3.0g/t measured; 723,000ozs at 2.8 g/t indicated; plus an additional 957,000ozs at 3.2g/t inferred).

NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS PRESS RELEASE.

This News Release includes certain "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements other than statements of historical fact, included in this release, including, without limitation, the positioning of the Company for future success, statements regarding potential future production at Angovia and Kalsaka, exploration and drilling results at Baomahun, and future capital plans and objectives of Cluff Gold, are forward-looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Cluff Gold's expectations include, among others, risks related to international operations, the actual results of current exploration and drilling activities, changes in project parameters as plans continue to be refined as well as future price of gold. Although Cluff Gold has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Cluff Gold does not undertake to update any forward-looking statements that are included herein, except in accordance with applicable securities laws.

Douglas D Chikohora has reviewed and approved the information contained within this announcement. Mr Chikohora (MSc., MIMMM., CEng) is the Technical Director of the Company.

A technical report prepared by SRK Consulting (UK) Limited entitled "Technical Review of the Baomahun Gold Exploration Project, Sierra Leone," was filed on 17 February 2009 at www.sedar.com.

Dealing Disclosure Requirements

Under the provisions of Rule 8.3 of the Takeover Code (the "Code"), if any person is, or becomes, "interested" (directly or indirectly) in 1% or more of any class of "relevant securities" of Cluff Gold, all "dealings" in any "relevant securities" of that company (including by means of an option in respect of, or a derivative referenced to, any such "relevant securities") must be publicly disclosed by no later than 3.30 pm (London time) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which the offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the "offer period" otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an "interest" in "relevant securities" of Cluff Gold, they will be deemed to be a single person for the purpose of Rule 8.3.

Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant securities" of Cluff Gold by Cluff Gold, or by the potential offer ors, or by any of their respective "associates", must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction.

A disclosure table, giving details of the companies in whose "relevant securities" "dealings" should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel's website at http://www.thetakeoverpanel.org.uk.

"Interests in securities" arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an 'interest' by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities.

Terms in quotation marks are defined in the Code, which can also be found on the Panel's website. If you are in any doubt as to whether or not you are required to disclose a "dealing" under Rule 8, you should consult the Panel.