Half-yearly Report

3 February 2014 Conroy Gold and Natural Resources plc ("Conroy" or "the Company") Half-yearly results for the six months ended 30 November 2013 Conroy Gold and Natural Resources plc (AIM:CGNR; ESM:CGNR.I), the goldexploration and development company planning to develop a gold mine atClontibret in Ireland, announces its results for the six months ended 30November 2013. Highlights: * Viability of proposed gold mine at Clontibret confirmed * Preliminary economic assessment process design criteria and operating costs validated * Lower sulphur grade implies savings in capital and operating costs * Processing plant capital costs estimated to fall from US$20.16 million to US$ 18.5 million * Process operating costs estimated to fall from US$ 13.64/t to US$12.26/t * Further encouraging results at nearby Clay Lake Gold Target * High zinc values reported from Base Metal Exploration Commenting, Chairman, Professor Richard Conroy said: "I am delighted that the results of the metallurgical and mineralogicaltestwork at Gold Fields/Biomin in South Africa have confirmed the viability ofthe proposed gold mine at Clontibret and that a review by independentconsultants Tetra Tech Inc. validated the Preliminary Economic Assessment(Scoping Study) process design criteria and operating costs and in particularthat the capital cost of the proposed processing plant is now estimated to fallfrom US$ 20.16 million to US$ 18.5 million and the process operating costs tofall from US$ 13.64/t to US$ 12.26/t." For further information please contact: Conroy Gold and Natural Resources plc Tel: +353-1-661-8958Professor Richard Conroy, Chairman Sanlam Securities UK Limited (Nomad) Tel: +44-20-7628-2200Simon Clements/Virginia Bull Hybridan LLP (Broker) Tel: +44-20-7947-4350/ 4361Claire Noyce/William Lynne IBI Corporate Finance Limited (ESM Adviser) Tel: +353-766-234-800Ger Heffernan Lothbury Financial Services Limited Tel: +44-20-3440-7620Michael Padley/Michael Spriggs Hall Communications Tel: +353-1-660-9377Don Hall Visit the website at: www.conroygold.com CHAIRMAN'S STATEMENT Dear Shareholder, I have great pleasure in presenting your Company's Interim Report for the sixmonths ended 30 November 2013. This was a period of further significant progress for yourCompany during which the viability of your Company's proposed mine atClontibret was confirmed and excellent results were reported from yourCompany's gold and base metal exploration targets. Confirmation of Amenability and Technical Viability of Clontibret MiningProject The final results of the mineralogical and metallurgical testwork programme onthe ore grade material sent to Goldfields/BIOMIN in South Africa confirmed theamenability and technical viability of using the BIOX® technique to process theore at Clontibret. The mineralogical and metallurgical testwork, which was supervised and managedby independent consultants Tetra Tech Inc. ("Tetra Tech") was carried out on350kg of drill core representative of both lode and stockwork ore gradematerial with a 10 per cent dilution factor with a grade similar to thatexpected for run of mine. The testwork results indicated fast oxidation kinetics, achieving over 90 percent oxidation for both lode and stockwork concentrate samples. Maximum goldextractions achieved were 90.4 per cent and 87.1 per cent respectively withoverall recoveries confirmed by Tetra Tech to be in line with their independentScoping Study. BIOX®, which is a well established bacterial oxidation technique, wasrecommended by Tetra Tech as an appropriate technology for treating the goldsulphide concentrate at the proposed gold mine at Clontibret. BIOX® is anenvironmentally friendly proven technology with a number of plants in operationworldwide including South Africa, Ghana, Brazil, China and Australia. The BIOX®process gives improved rates of gold recovery at significantly lower capitaland operating costs. A review by Tetra Tech of the results of the final mineralogical andmetallurgical testwork programme on the ore grade material sent to Gold Fields/Biomin in South Africa, validated the Preliminary Economic Assessment ("PEA")(Scoping Study) process design criteria and operating costs. The review of the metallurgical testwork results confirmed the key processdesign parameters, including the amenability of the ore to bio-oxidativepre-treatment, and the suitability of the proposed BIOX® oxidation process.Other than a lower sulphur grade in concentrate, results were as anticipated inthe PEA. The decreased sulphur grade implies savings in both capital andoperating costs. In relation to these savings the capital cost for the proposed processing plantis now estimated by Tetra Tech at US$ 18.5 million compared with the US$ 20.16million in the PEA and the process operating costs are estimated to fall fromUS$ 13.64/t to US$ 12.26/t. Exploration Gold Targets Exploration of your Company's gold targets continued with further highlyencouraging results along the thirty mile gold trend in the Longford-DownMassif in Ireland, which your Company has discovered. Clay Lake Gold Target Further excellent progress has been made at your Company's Clay Lake Target, 3½miles from Clontibret. This gold target is a carbonaceous shale hosted golddeposit, encompassing many of the geological attributes of major sedimenthosted gold deposits. Examples of these deposits include the multi-millionounce gold deposits at Tien Shan such as the 169.3m oz Muruntau Mine, one ofthe largest gold deposits in the world and the 17.4m oz Kinross Mine in Brazil,which at a grade of 0.41g/t gold and a cost of US$ 720/oz, produced over453,000oz gold in 2011. Base Metal Targets An ongoing evaluation of old lead workings within your Company's licence areaas part of your Company's exploration programme for base metals yielded highlypositive zinc results of up to 30 per cent. Grab samples were taken from twelve of the old lead workings spoil heaps in theCompany's licence area. Most of these samples gave high lead values as might beexpected although a lead value of 7.31 per cent. at the Tassan workings inCounty Monaghan was particularly high. Two samples from the Cornaurney workings in County Cavan gave exceptionallyhigh zinc levels of 30.00 and 18.40 per cent. respectively. These samples alsohad elevated copper of 0.125 and 0.216 per cent., silver of 9.2 and 3.8 ppm,antimony of 101 and 49 ppm as well as mercury at 27ppm and 14ppm, gallium of200ppm and 100ppm and cadmium of 2000 ppm and 688ppm. Your Company has also discovered an extensive zinc-in-soil anomaly on itsprospecting licences in Counties Monaghan and Armagh. This together with veryhigh zinc levels detected in the old mine working spoil heaps in County Cavanadd to the overall metalliferous potential of your Company's licence area forboth gold and base metals. Finance The loss after taxation for the half-year ended 30 November 2013 was €131,527(2012: loss of €197,683) and the net assets as at 30 November 2013 were€13,224,751 (2012: €12,555,277). During the period, a fundraising raised £1,000,000 by way of an equitysubscription and convertible debt issue. Outlook Your Company looks forward to continued progress with its planned gold mine atClontibret and its ongoing exploration programme for gold and base metals. Directors and Staff I would like to thank all of my fellow directors, staff and consultants fortheir support and dedication, which has enabled the continued success of theCompany. I look forward to the future with confidence. Yours faithfully,Professor Richard ConroyChairman 3 February 2014 INCOME STATEMENTFOR SIX MONTHS ENDED 30 NOVEMBER 2013 Six months Six months Year ended ended ended 30 November 30 November 31 May 2013 2012 2013 (Unaudited) (Unaudited) (Audited) € € € OPERATING EXPENSES (125,588) (191,884) (411,020) Finance income - bank interest 0 0 12receivable Finance costs - interest on (5,939) (5,799) (12,971)shareholder loan LOSS BEFORE TAXATION (131,527) (197,683) (423,979) Taxation - - - LOSS FOR HALF-YEAR (131,527) (197,683) (423,979) Loss per ordinary share - basic (€0.0004) (€0.0007) (€0.0015)and diluted STATEMENT OF COMPREHENSIVE INCOMEFOR SIX MONTHS ENDED 30 NOVEMBER 2013 Six months Six months Year ended ended ended 30 November 30 November 31 May 2013 2012 2013 (Unaudited) (Unaudited) (Audited) € € € LOSS FOR PERIOD (131,527) (197,683) (423,979) Total income and expense - - -recognised in other comprehensiveincome TOTAL COMPREHENSIVE INCOME FOR THE (131,527) (197,683) (423,979)PERIOD - ENTIRELY ATTRIBUTABLE TOEQUITYHOLDERS STATEMENT OF FINANCIAL POSITIONAS AT 30 NOVEMBER 2013 30 November 30 November 31 May 2013 2012 2013 (Unaudited) (Unaudited) (Audited) ASSETS € € € Non-current Assets Intangible assets 15,302,446 14,226,967 14,824,846 Investment in Subsidiary 2 2 2 Property, plant and equipment 5,363 8,913 7,138 15,307,811 14,235,882 14,831,986 Current Assets Trade and other receivables 331,616 116,802 163,139 Cash and cash equivalents 19,508 42,768 71,864 351,124 159,570 235,003 Total Assets 15,658,935 14,395,452 15,066,989 EQUITY AND LIABILITIES Capital and Reserves Called up share capital 8,936,758 8,112,257 8,737,547 Share premium 7,926,342 7,872,573 7,917,717 Capital conversion reserve fund 30,617 30,617 30,617 Share based payments reserve 1,044,248 955,221 969,735 Retained losses (4,713,214) (4,415,391) (4,581,687) Total Equity 13,224,751 12,555,277 13,073,929 Non-current Liabilities Convertible loan 996,075 - - Financial Liabilities 293,215 994,314 1,045,775 Total Non-current Liabilities 1,289,290 994,314 1,045,775 Current Liabilities Trade and other payables 1,144,894 845,861 947,285 Total Current Liabilities 1,144,894 845,861 947,285 Total Liabilities 2,434,184 1,840,175 1,993,060 Total Equity and Liabilities 15,658,935 14,395,452 15,066,989 CASH FLOW STATEMENTFOR THE SIX MONTHS ENDED 30 NOVEMBER 2013 Six months Six months Year ended ended ended 30 November 30 November 31 May 2013 2012 2013 (Unaudited) (Unaudited) (Audited) € € € Cash flows from operating activities Cash (used in)/generated by (86,373) 15,444 (103,587)operations Tax paid - - - Net cash (used in)/generated by (86,373) 15,444 (103,587)operating activities Cash flows from investing activities Investment in exploration and (417,334) (563,515) (1,049,245)evaluation Payments to acquire property, plant - - -and equipment Net cash used in investing activities (417,334) (563,515) (1,049,245) Cash flows from financing activities Issue of share capital 207,836 - 495,037 Advances/(conversion) of shareholder (752,560) 352,192 491,000loan Convertible loan 996,075 - - Bank interest received - - 12 Interest paid on shareholder loan - - - Net cash generated from financing 451,351 352,192 986,049activities (Decrease)/Increase in cash and cash (52,356) (195,879) (166,783)equivalents Cash and cash equivalents at 71,864 238,647 238,647beginning of period Cash and cash equivalents at end of 19,508 42,768 71,864period STATEMENT OF CHANGES IN EQUITYFOR THE SIX MONTHS ENDED 30 NOVEMBER 2013 Capital Conversion Share-based Retained Share Share Reserve Payment Earnings Total Capital Premium Fund Reserve (Deficit) Equity € € € € € € At 1 June 2013 8,737,547 7,917,717 30,617 969,735 (4,581,687) 13,073,929 Share issue 199,211 - - - - 199,211 Share premium - 10,457 - - - 10,457 Share issue - (1,832) - - - (1,832)expenses Share-based - - - 74,513 - 74,513payments Loss for the - - - - (131,527) (131,527)period At 30 November 8,936,758 7,926,342 30,617 1,044,248 (4,713,214) 13,224,7512013 Capital Conversion Share-based Retained Share Share Reserve Payment Earnings Total Capital Premium Fund Reserve (Deficit) Equity € € € € € € At 1 June 2012 8,112,257 7,872,573 30,617 880,708 (4,217,707) 12,678,448 Share-based - - - 74,513 - 74,513payments Loss for the - - - - (197,684) (197,684)period At 30 November 8,112,257 7,872,573 30,617 955,221 (4,415,391) 12,555,2772012 Notes to the Financial Statements 1. Basis of preparation The half-yearly financial statements have been prepared on the basis of therecognition and measurement requirements of International Financial ReportingStandards (IFRS) as adopted by the European Union (EU), and theirinterpretations adopted by the International Accounting Standards Board (IASB).The accounting policies used in the preparation of the half-yearly financialinformation are the same as those used in the Company's audited financialstatements for the year ended 31 May 2013. 2. Earnings per share The calculation of the loss per ordinary share of €0.0004 (2012 - €0.0007) isbased on the loss for the financial year of €131,527 (2012 - €197,683) and theweighted average number of ordinary shares in issue during the period of293,465,001 (2012 - 270,408,542). Since the Company incurred a loss the effect of share options and warrantswould be anti-dilutive. 3. Dividends No dividends were paid or are proposed in respect of the six months ended 30November, 2013. 4. Copies of Accounts A copy of the Half-Yearly Report will be available on the Company's websitewww.conroygold.com and will be available from the Company's registered office,10 Upper Pembroke Street, Dublin 2.