Final VTEM Results for Baomahun Gold Project

1 December 2010 AIM:CLF / TSX: CFG

Final VTEM Results For Baomahun Gold Project

Seven New Drill Targets Confirm Demonstrable Upside

Cluff Gold plc ("Cluff Gold" or the "Company"), the dual AIM/TSX listed West African-focused gold mining company, is pleased to announce the results of the interpretation of the airborne versatile time domain electro-magnetic survey ("VTEM Survey") for its wholly-owned Baomahun asset ("Baomahun" or the "Project") in Sierra Leone. 

Highlights

·; Seven new drill targets have been initially identified using data from the VTEM Survey

·; All targets are interpreted to occur close to surface

·; All targets are interpreted as having strikes and dips similar to mineralisation in the existing resource area in which 1.4Moz of measured and indicated resources, and 1.0Moz of inferred resources have been delineated to date1

·; A targeted and accelerated 6,000m diamond drilling programme focusing on the seven new targets is due to commence in January 2011 as part of the Company's US$12 million programme at Baomahun in the 2010/11 season

·; An additional 20,000m infill drilling programme has already commenced also as part of the Company's US$12 million programme

Algy Cluff, Chairman and Chief Executive of Cluff Gold, commented:

"We are delighted with the results of the VTEM Survey, which confirm our belief in the significant upside at Baomahun. We now have in place a defined schedule to both drill-test these new targets whilst also ensuring that the feasibility study remains on track. Following our recent fundraising, the Company is now well positioned to take an aggressive approach to its exploration programmes across all three assets."

Details of VTEM Results

As a result of the extensive drilling programme to date, 0.5Moz (5.5Mt @ 2.9g/t) and 0.9Moz (9.6Mt @ 2.9g/t) have been delineated in the measured & indicated resource categories respectively at Baomahun, with an additional 1.0 million ounces (12.2Mt at 2.6g/t) in inferred resources1. The gold mineralisation is contained in gold bearing quartz veins and remains open at depth. The resource base is currently contained in an area of approximately 2 sq. km while the total project licence area is 136 sq. km.

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In the existing resource area, gold is known to be associated with pyrrhotite, a highly conductive and magnetic sulphide mineral. The VTEM Survey was undertaken to identify potential drill targets by identifying similarly highly conductive zones in the rest of the Company's license area. 

As a result of this VTEM Survey, a number of highly conductive zones have been identified. The results of the VTEM Survey are summarised in an image (the "Conductivity Map"), which is made available at the Company's website at http://www.cluffgold.com/site/CLUF/Templates/General.aspx?pageid=108&cc=GB. The Conductivity Map indicates the highly conductive zones throughout the Project area as shown in red and pink.

The VTEM Survey results were then compared against existing aeromagnetic data, known lithologies, geochemical soil survey results and areas of previous artisanal mining to produce the initial seven high priority targets for further exploration. Based on recently completed detailed interpretation, the top of the conductors in all seven zones are interpreted to occur within 100m of the surface. Furthermore, the conductive zones along strike are interpreted as having similar strikes and dips as the gold-bearing veins in the current resource area.

The Company's strategy is to undertake an initial drilling programme to test the seven new zones for gold mineralisation and to follow up favourable results with a programme of step out drilling. As such, an initial 6,000m diamond drilling programme utilising two exploration drill rigs has been planned. The rigs are due to arrive on site in January 2011.

In addition, a 20,000m infill drilling programme is planned as part of the Company's US$12 million budget committed to the Project up to June 2011 for its feasibility study and exploration. One drill rig is already drilling following the end of the wet season, and another is due to arrive this month. 

Data Verification and QA-QC Statement

The VTEM Survey was conducted and interpreted by Geotech Ltd. of Barbados, an independent contractor.

END.

About Cluff Gold

Cluff Gold is a gold developer-producer with assets in West Africa. The Company generates cash flow from its two producing assets, Kalsaka in Burkina Faso and Angovia in Côte d'Ivoire, which together produce a total of 100,000oz of gold per annum. The Company strives to become a mid-tier producer through the development of its wholly-owned Baomahun project in Sierra Leone, which is expected to contribute an additional 157,000oz of gold per annum, with significant exploration potential along strike. With its experience of bringing new mines into production, the Company aims to further increase its production profile with its highly prospective exploration work at all three projects.

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

This press 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, Kalsaka and Baomhaun, 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.

Mr. Douglas Chikohora (M.Sc., MIMMM) and a "qualified person" as such term is defined in National Instrument 43-101, has reviewed the contents of this press release. Mr. Chikohora, who is a consultant and a non-executive director of the Company, has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained herein.

Detailed descriptions of the Baomahun property were previously disclosed in the Company's NI43-101 Technical Review of the Baomahun Gold Exploration Project, Sierra Leone, prepared by SRK Consulting and dated August 12, 2010, as filed on SEDAR.

This press release contains information relating to potential grade and quantities from properties material to the Company. Readers are advised that such grades and quantities are conceptual in nature as there has been insufficient exploration to define a mineral resource and there can be no assurance that further exploration will result in the targets being delineated as mineral resource. The potential grades and quantities were based on the sampling methodology described above.