Half Yearly Report

17th September, 2010

Persian Gold plc

Interim Results for the Six Month Period to 30th June 2010

A new era beckons for shareholders in Persian Gold. A major transformation in strategy in underway. In the coming months Persian Gold will transform into Clontarf Energy. Gold exploration opportunities in Iran and our early stage lithium opportunities in Bolivia will be subsumed into a company with oil and gas production and exploration. The above will require shareholder approval. Details will be sent to all shareholders in the coming months followed by a special meeting.

The proposal, agreed by your board, is to acquire Hydrocarbon Exploration, an unlisted public company, with oil and gas operations in the Gulf of Mexico and Bolivia, and a potential share in a Ghanaian oil exploration block and early stage exploration interests in Bolivian lithium exploration.

The proposal is to offer 2,500 Persian Gold shares for every 1 Hydrocarbon Exploration share. On that basis, the Persian Gold share price of 6.75p at the time of suspension values each Hydrocarbon Exploration share at £168.75. Post merger and prior to any funding, Clontarf Energy, the relisted vehicle, will therefore be owned as to 54% by Persian Gold shareholders and 46% by Hydrocarbon Exploration shareholders respectively. The merger is being achieved by a Scheme of Arrangement. Technical, legal and financial due diligence is advanced. Assuming this is satisfactory and all legal, regulatory and shareholder approvals are obtained, and necessary funding raised, the relisted company with new financing will list in the last quarter of this year.

Persian Gold has acquired 1,425 shares in Hydrocarbon Exploration representing 5.6% of the issued share capital. This was achieved by purchasing all of the share fractions held by upwards of 3,800 Hydrocarbon Exploration shareholders in the process of a share consolidation. The cost of purchase of these shares was £178,125.

When shareholders receive the full set of documents the strategy will become clearer. The Ghanaian block, though early stage, offers significant potential. Work is ongoing to clear up legal issues with the Gulf of Mexico properties. Bolivia has political uncertainty and legacy issues relating to title but there are opportunities in gas and lithium.

We are not ignoring our Iranian investments. Five years work and millions of dollars have gone into our two projects, Chah-e-Zard and Dalli, both of which have potential. We are working with the Iranian authorities to obtain Discovery Certificates without which we cannot proceed.

One thing is sure, the future is going to be very different from the past. New directions, new projects, new money and a new name will revitalise our company.

John Teeling

Chairman

17th September 2010

www.persiangoldplc.com

Notes:

1. INFORMATION

The financial information for the six months ended June 30th, 2010 and the comparative amounts for the six months ended June 30th, 2009 are unaudited. The financial information above does not constitute full statutory accounts within the meaning of section 240 of the Companies Act 1985.

The Interim Financial Report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union. The accounting policies and methods of computation used in the preparation of the Interim Financial Report are consistent with those used in the Group 2009 Annual Report, which is available at www.persiangoldplc.com

The interim financial statements have not been audited or reviewed by the auditors of the Group pursuant to the Auditing Practices board guidance on Review of Interim Financial Information.

2. No dividend is proposed in respect of the period.

3. LOSS PER SHARE

Basic loss per share is computed by dividing the loss after taxation for the year available to ordinary shareholders by the weighted average number of ordinary shares in issue and ranking for dividend during the year. Diluted earnings per share is computed by dividing the loss after taxation for the year by the weighted average number of ordinary shares in issue, adjusted for the effect of all dilutive potential ordinary shares that were outstanding during the year.

Basic and diluted loss per share are the same as the effect of the outstanding share options is anti-dilutive and is therefore excluded.

4. INTANGIBLE ASSETS

Exploration and evaluation assets relates to expenditure incurred in prospecting and exploration for gold in Iran.

The group's activities are subject to a number of significant potential risks including:

- price fluctuations

- foreign exchange risks

- uncertainties over development and operational risks

- operations and environmental risks

- political and legal risks, including arrangements with governments for licenses, profit

sharing

and taxation.

- foreign investment risks including increases in taxes, royalties and renegotiation of

contracts

- liquidity risks

- funding risks

The realisation of this intangible asset is dependent on the discovery and successful development of economic mineral reserves which is affected by these and other risks. Should the realisation of the intangible asset prove unsuccessful the value included in the balance sheet would be written off to the income statement.

The directors are aware that by its nature there is an inherent uncertainty in such development expenditure as to the value of the asset.

The rate of progress in obtaining discovery certificates on two projects in Iran is slower than expected. Notwithstanding these delays, the directors are confident that the capitalised value of these projects is fully recoverable, either through progressing the projects after resolving delays with the Iranian authorities, or by realising value through disposal to a large mineral resource development group who can progress the project.

Having reviewed the deferred exploration and evaluation development expenditure at 30 June 2010, the directors are satisfied that the value of the intangible asset is not less than carrying net book value.

5. SHARE CAPITAL

Movements in issued share capital

On 10 June 2010, 510,637 warrants were exercised at a price of 4p.

6. The Interim Report for the six months to June 30th, 2010 was approved by the Directors on 16th September 2010.

7. Copies of this announcement will be sent to shareholders and will be available for inspection at the Companies Registered Office at 20-22 Bedford Row, London WC1R 4JS. The Interim Report may also be viewed at Persian Gold plc's website at www.persiangoldplc.com