Half-yearly Report

25 February 2015 Conroy Gold and Natural Resources plc ("Conroy" or "the Company") Half-yearly results for the six months ended 30 November 2014 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 2014. Highlights: * Viability of mine at Clontibret confirmed * Metallurgical testwork indicates favourable flotation and downstream processing characteristics * Potential economic quantities of antimony as well as gold may be mined * Satellite imagery and structural studies highlight further gold potential * Gold Licences granted in highly prospective region in Finland Commenting, Chairman, Professor Richard Conroy said: "I am delighted that continued progress has been made in relation to ourproposed mine at Clontibret in Co. Monaghan and that antimony may also be minedas well as gold." 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: +44-20-7628-2200Virginia Bull/Simon Clements Hybridan LLP (Broker) Tel: +44-20-3713-4581Claire Noyce/William Lynne IBI Corporate Finance Limited (ESM Adviser) Tel: +353-766-234-800Ger Heffernan/Jan Fitzell Lothbury Financial Services Limited Tel: +44-20-3440-7622Michael Padley 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 Half-Yearly Report for thesix months ended 30 November 2014. This was a period of further significantprogress for your Company during which the viability of the proposed mine atClontibret was confirmed and that antimony as well as gold may well beeconomically mined. In addition, excellent results were reported from both theCompany's gold and base metal exploration targets. Exploration licences werealso granted in a promising gold area of Finland. The focus will however remainon bringing the Clontibret mine into production. Clontibret Work continued in relation to your Company's proposed gold mine in Clontibret,Co. Monaghan and in July Michael Brennan was appointed Project Manager tooversee the mine development. The mine will consist of a Phase 1 starter pit which will concentrate on a highgrade, densely drilled portion of the resource and should result in acceleratedtotal project capital payback within year 2 of the operation and a positivecash flow. Current metallurgical testwork is indicating very favourable flotation anddownstream processing characteristics which together with favourableinfrastructure and logistical support will help reduce the project's capitaland operating costs. The metallurgical testwork has also revealed thatpotentially economic quantities of antimony may occur in the gold bearingconcentrate following flotation. Work has therefore been carried out to identify flowsheet options to allow forthe extraction of the antimony from the gold bearing concentrate. Severalprocess options have been identified, and future metallurgical testwork willinclude testing these options and optimising extraction so as to ensure asaleable antimony product. Antimony is specified by the European Commission as a critical raw material anda large supply deficit is forecast. The product is used primarily in theproduction of flame retardants. The potentially economic quantities of the strategically important mineralantimony, in addition to the gold which is intended to be mined at Clontibret,is a very welcome further development as your Company moves forward with itsmining plans for Clontibret. Phase 2 will comprise underground mining and/or further surface pit(s). For theunderground mining option there are favourable grades and widths at depth thathave been identified by drilling. This ore could be accessed by a spiral rampat the base of the Phase 1 pit and mined by a high volume method such assublevel block caving. The mining plan is also set in the context of the remaining 80 per cent of theClontibret gold target where significant gold intersections outside the plannedmine area for Phase 1 have been previously identified and are expected to beeconomic to mine. Exploration Further highly encouraging results were achieved on your Company's explorationlicences. In particular, high resolution satellite imagery has identified 21gold exploration targets as well as delineating five main lineamentorientations in the Longford-Down Massif. Positive results were also receivedfrom a Structural Study undertaken at the Slieve Glah target in County Cavan,Ireland. The study was carried out by independent consultant structuralgeologists, Dr. Francis Murphy and Dr. David Coller. The study showed that thegold mineralisation at Slieve Glah is associated with a major geologicalstructure, the Orlock Bridge Fault which appears to be the major structuralcontrol on mineralisation in the area. The study highlighted the potential fora concentration of gold mineralised faults and of gold target zones within thegold-in-soil anomalies defined at Slieve Glah. These anomalies areapproximately 3 km (1.8 miles) in length. The Slieve Glah area is located approximately 40 km (25 miles) to the southeast of the proposed gold mine at Clontibret in County Monaghan. The OrlockBridge Fault undergoes a significant strike swing, or bend, at Slieve Glah.This has led to the development of a dilation zone which could hold significantmineral potential. Your Company has also made further progress with its gold exploration programmein Finland with the granting of nine exploration claims in the Sodankyla regionof Northern Finland which we are delighted to receive having been involved ingold exploration in Finland for many years. Sodankyla has become a highly prospective region for gold and copperexploration, hosting both the world class Kittila gold mine and the Kevitsanickel-copper mine. Previous exploration by your Company in the Sodankyla areayielded very encouraging gold results and historic till sampling within thearea has reported values of over 4,000 ppb gold and up to 95 ppm copper. Thenine exploration claims which have been granted in Finland together cover anarea of 789Ha (c. 1,950 acres). We look forward to our exploration programme in Finland complementing oursuccessful gold and base metal exploration in Ireland. Finance The loss after taxation for the half-year ended 30 November 2014 was €150,230(2013: loss of €131,527) and the net assets as at 30 November 2014 were €15,449,505 (2013: €13,224,751). During the period, we raised £750,000 by way of placing and subscription, therewas also a debt conversion of £273,500 nominal of unsecured convertible loanand an extension of warrants by five years. 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 Conroy Chairman 25 February 2015 INCOME STATEMENT FOR HALF-YEAR ENDED 30 NOVEMBER 2014 Six months Six months Year ended ended ended 30 November 30 November 31 May 2014 2013 2014 (Unaudited) (Unaudited) (Audited) € € € OPERATING EXPENSES (150,230) (125,588) (374,323) Finance income - bank interest - - -receivable Finance costs - interest on - (5,939) (5,982)shareholder loan LOSS BEFORE TAXATION (150,230) (131,527) (380,305) Taxation - - - LOSS FOR HALF-YEAR (150,230) (131,527) (380,305) Loss per ordinary share - basic (€0.0004) (€0.0004) (€0.0012)and diluted STATEMENT OF COMPREHENSIVE INCOME FOR HALF-YEAR ENDED 30 NOVEMBER 2014 Six months Six months Year ended ended ended 30 November 30 November 31 May 2014 2013 2014 (Unaudited) (Unaudited) (Audited) € € € LOSS FOR PERIOD (150,230) (131,527) (380,305) Total income and expense - - -recognised in other comprehensiveincome TOTAL COMPREHENSIVE INCOME FOR THE (150,230) (131,527) (380,305)PERIOD - ENTIRELY ATTRIBUTABLE TOEQUITYHOLDERS STATEMENT OF FINANCIAL POSITION AS AT 30 NOVEMBER 2014 30 November 30 November 31 May 2014 2013 2014 (Unaudited) (Unaudited) (Audited)ASSETS € € € Non-current Assets Intangible assets 16,623,673 15,302,446 16,033,308 Investment in Subsidiary 2 2 2 Property, plant and equipment 279,253 5,363 7,854 16,902,928 15,307,811 16,041,164 Current Assets Trade and other receivables 51,947 331,616 59,358 Cash and cash equivalents 466,585 19,508 78,372 518,532 351,124 137,730 Total Assets 17,421,460 15,658,935 16,178,894 EQUITY AND LIABILITIES Capital and Reserves Called up share capital 4,373,208 8,936,758 3,520,000 Called up deferred share capital 6,135,597 - 6,135,597 Share premium 8,855,525 7,926,342 8,447,949 Capital conversion reserve fund 30,617 30,617 30,617 Share based payments reserve 1,007,780 1,044,248 1,034,760 Retained losses (4,953,222) (4,713,214) (4,877,992) Total Equity 15,449,505 13,224,751 14,290,931 Non-current Liabilities Convertible loan - 996,075 324,952 Financial Liabilities 191,022 293,215 191,022 Total Non-current Liabilities 191,022 1,289,290 515,974 Current Liabilities Trade and other payables 1,780,933 1,144,894 1,371,989 Total Current Liabilities 1,780,933 1,144,894 1,371,989 Total Liabilities 1,971,955 2,434,184 1,887,963 Total Equity and Liabilities 17,421,460 15,658,935 16,178,894 CASH FLOW STATEMENT FOR THE HALF-YEAR ENDED 30 NOVEMBER 2014 Six months Six months Year ended ended ended 30 November 30 November 31 May 2014 2013 2014 (Unaudited) (Unaudited) (Audited) € € € Cash flows from operating activities Cash generated/(used in) by 279,130 (86,373) 186,680operations Tax paid - - - Net cash generated/(used in)by 279,130 (86,373) 186,680operating activities Cash flows from investing activities Investment in exploration and (547,312) (417,334) (1,068,743)evaluation Payments to acquire property, plant (279,436) - -and equipment Net cash used in investing activities (826,748) (417,334) (1,068,743) Cash flows from financing activities Issue of share capital 1,260,783 207,836 812,621 Advances/(conversion) of shareholder - (752,560) 205,000loan Convertible loan conversion (324,952) 996,075 - Amount repaid to shareholders - - (114,600) Interest paid on shareholder loan - - (14,450) Net cash generated from financing 935,831 451,351 888,571activities Increase/(Decrease) in cash and cash 388,213 (52,356) 6,508equivalents Cash and cash equivalents at 78,372 71,864 71,864beginning of period Cash and cash equivalents at end of 466,585 19,508 78,372period STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 30 NOVEMBER 2014 Capital Conversion Share-based Retained Share Share Reserve Payment Earnings Total Capital Premium Fund Reserve (Deficit) Equity € € € € € € At 1 June 2014 9,655,597 8,447,949 30,617 1,034,760 (4,877,992) 14,290,931 Share issue 853,208 - - - - 853,208 Share premium - 446,772 - - - 446,772 Share issue - (39,196) - - - (39,196)expenses Share-based - - - 48,020 - 48,020payments - - - (75,000) 75,000 -Transfer fromshare-basedpayment reserveto retainedearnings/(deficit) Loss for the - - - - (150,230) (150,230)period At 30 November 10,508,805 8,855,525 30,617 1,007,780 (4,953,222) 15,449,5052014 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 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 2014. 2. Earnings per share The calculation of the loss per ordinary share of €0.0004 (2013: €0.0004) isbased on the loss for the financial year of €150,230 (2013: €131,527) and theweighted average number of ordinary shares in issue during the period of363,060,039 (2013: 293,465,001). 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 period ended 30November 2014. 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.