Half-yearly Report

CONROY GOLD & NATURAL RESOURCES PLC - Half-yearly Report

PR Newswire

London, February 27

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 2012.

Highlights:

Commenting, Chairman, Professor Richard Conroy said:

"The commencement of the metallurgical tests by Gold Fields Ltd. is animportant further step for our planned mine at Clontibret. I am also verypleased with the progress at our Clay Lake target in Co. Armagh whichincreasingly looks as though it could host a large gold deposit. The Board isalso delighted by the discovery of a series of large targets at Slieve Glah."

For further information please contact:

Shore Capital Stockbrokers Limited (Joint Broker) Tel: +44-20-7408-4050Jerry Keen/Bidhi Bhoma/Toby Gibbs

Visit the website at: www.conroygoldandnaturalresources.com

I have great pleasure in presenting your Company's Interim Report for the sixmonths ended 30 November 2012. This was a period of further very positiveprogress for your Company during which time prefeasibility metallurgical testsbegan in relation to Conroy's planned gold mine at Clontibret, there wereindications that your Company's Clay Lake Target in Co. Armagh could host alarge gold deposit and a series of further large gold targets were discoveredat Slieve Glah in Co. Cavan.

Clontibret

Work continues on the planned development of a gold mine on 20 per cent. of theClontibret target including an agreement with Gold Fields Limited to undertakemineralogical characterisation and prefeasibility metallurgical test work. Theproposed process - BIOX® is a well-established bacterial oxidation process.Gold Fields Limited is a world leader in this environmentally friendly, proventechnology

A comprehensive series of composites were constructed from drill core to createsamples of lode and stockwork material selected from different locations withinthe proposed pit shell. The samples total over 350 kilogrammes of drill coreand have been dispatched to South Africa for testing. The samples are comprisedof ore grade material with a 10 per cent dilution factor and represent asimilar grade to that expected for run of mine.

The pre-feasibility metallurgical test work comprises Comminution, Flotationand BIOX® Test work. The test work is being managed and executed by SGS SouthAfrica (Pty) Ltd. under the supervision and direction of Gold Fields Ltd. BIOX®is a well-established bacterial oxidation process and Gold Fields Ltd is aworld leader in this environmentally friendly proven technology with a numberof plants currently in operation worldwide including South Africa, Ghana,Brazil, China and Australia.

Tetra Tech, which conducted the Scoping Studies on behalf of your Company willreview the metallurgical studies on your Company's behalf and compile themetallurgical report for the metallurgical section in the Feasibility Studiesfor the proposed mine.

These results relate to the Comminution test work being undertaken byGoldfields Limited ("Goldfields") including grinding, crushing and otherfactors in relation to mill design. The test work undertaken included Bond RodWork Index (BRWi), Bond Ball Work Index (BBWi), Bond Abrasion Work Index (Ai)and SAG Mill Comminution Test (SMC). The latter was carried out on behalf ofGoldfields by JKTech which specialises in SAG Mill techniques.

The Abrasion Index was lower than anticipated and the ore is harder. The testsample was classified in the SMC test by JK Tech as being moderately hard.

The results suggest that a combination of Semi-Autonomous Grind ("SAG")/BallMill or "HPGR"/ Ball Mill or a larger Ball Mill for the process plant beconsidered. Preliminary indications are that a "SAG"/Ball Mill combination maybe the preferred choice.

The gold flotation recovery, at 90 per cent, is higher than assumed in theScoping Study. This is encouraging both technically and financially.

The results also indicate an 8 per cent sulphur grade in concentrate whereas inthe Scoping Study a grade of 12 per cent had been assumed. The lower sulphurgrade in the concentrate is highly advantageous as it will reduce processoperating costs.

The concentrate mass recovery at 5 per cent was the same as predicted in theScoping Study which is also very satisfactory.

The Company estimates that the effect of these results would increase the IRRfrom 49.4 per cent (in the Scoping Study) to over 55 per cent and wouldincrease the NPV8 from $72.3 million to over $90 million using the base casegold price of $1,372 per ounce as used by Tetra Tech in their Scoping Study andthus substantially increase the overall financial attractiveness of theproject.

The laboratory flotation full locked cycle tests were also completed and theresults positive. The importance of these tests is that they simulate whatmight be achieved when the processing plant of the mine is in continuousoperation. Steady state conditions were achieved in the fifth and sixth cycles.This is a very satisfactory outcome as the results suggest an efficient andsmooth running flotation process.

Clay Lake Gold Target

A ground geophysical survey at Clay Lake has now been conducted by GolderAssociates on your Company's behalf, totalling 960 line metres in four surveylines over the Northern area of the Clay Lake target. The survey was performedto determine the geophysical signature of the mineralisation and hostinglithologies, together with geological information on the subsurface features.

Strong features were seen in all four lines and interpretation of the resultsdepicted an anticlinal folding sequence of the gold bearing black carbonaceousstockwork zone, which had been seen in the drill holes previously.

These geophysical results, combined with the drilling results, provide highlyrelevant information for understanding the geology of the area, planning futuredrilling and in particular regarding the apexes of the anticlinal structures.Mineralisation tends to accumulate in the anticlinal structures and supportsthe view that the Clay Lake gold target could host a large gold deposit.

Slieve Glah Gold Target

A series of further large gold-in-soil targets have been discovered within yourCompany's Slieve Glah licence areas in County Cavan following a detailedgold-in-soil survey.

Two new targets (Targets 3 and 4), each over 3 km (1.9 miles) in length, werediscovered. In addition the assay results of the survey, which comprised over900 soil samples, extended the surface area of the two known gold targets(Targets 1 and 2) at Slieve Glah by over 1 km (0.6 miles) resulting in both nowalso totalling over 3 km in length.

Anomalous gold values returned from the assay analysis ranged from 4 ppb (partsper billion) Au to over 300ppb Au. In Ireland, over 10ppb Au is consideredhighly anomalous in soil samples and during follow-up drilling and/or trenchingover that anomaly typically proves positive for gold-in bedrock.

In one of the newly discovered targets (Target 4) a highly anomalous area hasbeen identified which measures approximately 1,000 metres in length by 500metres in width, trending Northwest to Southeast. The area has been defined byover a hundred soil samples collected on a 100m grid. Assay analysis returnedmaximum gold values of up to 140ppb Au with over 30 per cent. of the soilsamples returning elevated gold values of greater than 10ppb Au.

Gold has previously been confirmed in bedrock in the Slieve Glah target areathrough trenching and diamond core drilling by your Company.

The gold in soil targets identified by the soil sampling survey appear to bestructurally controlled and to occur as a series of right angle zones adjacentto the Orlock Bridge Fault, a major sinistral fault believed to be aninfluencing factor on mineralisation in the region. In the Slieve Glah area theOrlock Bridge Fault undergoes a marked swing from its normal Northeast -Southwest strike, producing a dilatational zone allowing greater permeation andcirculation of mineralising fluids, which also may assist in concentration ofmineralisation and thus can be associated with substantial accumulations ofminerals.

The new Slieve Glah gold targets lie at the southern end of the 50km (30 miles)gold trend

discovered by your Company, which stretches from Co. Armagh in Northern Irelandto Co. Cavan in the Republic of Ireland, and are located approximately 40km (25miles) south of the Clontibret Gold Project.

Finance

The loss after taxation for the half-year ended 30 November 2012 was €197,683(2011: loss of €203,752) and the net assets as at 30 November 2012 were€12,555,277 (2011: €12,381,024).

Outlook

Your Company looks forward to continued progress with its planned gold mine atClontibret and its highly promising exploration targets.

Directors and Staff

I am delighted that Mr Seamus FitzPatrick has agreed to become Deputy Chairman.Mr Seamus FitzPatrick, with his business ability and wide ranging experience incorporate and financial matters, has already played a major role in the ongoingsuccess and development of the Company. I look forward to his advice andsupport over the coming years as the Company moves from exploration toproduction.

Mr FitzPatrick, who has been a Non-Executive Director of Conroy for the pastfive years, has worked in both corporate finance and private equity in Londonand New York with Morgan Stanley International, J.P. Morgan Capital Partnersand Bankers' Trust. In 1999 he co-founded CapVest Associates LLP, which hasraised funds in excess of £2.0 billion. He is chairman of the Mater PrivateHospital and Valeo Foods Limited, and is a board member of Reno Norden AB. Heis also a member of the board of Karelian Diamond Resources plc.

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.

TOTAL COMPREHENSIVE INCOME FOR THE (197,683) (203,752) (533,262)PERIOD - ENTIRELY ATTRIBUTABLE TO

Cash generated by/(used in) operations 15,444 (194,641) (211,386)

Net cash used in investing activities (563,515) (1,027,327) (1,687,951)

(Decrease)/Increase in cash and cash (195,879) (336,508) (510,812)equivalents

Cash and cash equivalents at beginning 238,647 749,459 749,459of period

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 2012.

2. Earnings per share

The calculation of the loss per ordinary share of €0.0007 (2011 - €0.0009) isbased on the loss for the financial year of €197,683 (2011 - €203,752) and theweighted average number of ordinary shares in issue during the period of270,408,542 (2011 - 237,361,005).

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, 2012.

4. Copies of Accounts

A copy of the Half-Yearly Report will be available on the Company's websitewww.conroygoldandnaturalresources.com and will be available from the Company'sregistered office, 10 Upper Pembroke Street, Dublin 2.