Half-yearly Report

23 February 2009 Conroy Diamonds and Gold P.l.c ("the Company") Half-yearly results for the six months ended 30 November 2008 Chairman's Statement I have great pleasure in presenting your Company's half-yearly report for the six months ended 30 November 2008, a period during which your Company continued the delineation and evaluation of its one million plus ounce gold discovery at Clontibret in County Monaghan, Ireland and, more recently, discovered an extensive new gold anomaly at Clay Lake in County Armagh, larger in size than Clontibret and with higher gold-in-soil values. Clontibret The JORC-compliant gold resource has been identified in less than 20 per cent. of the Clontibret target. The directors believe that the discovery of the Clontibret gold resource, together with initial exploration of the remaining 80 per cent., suggests there is potential for a significantly larger deposit. Mineralisation at Clontibret comprises a mix of narrow high grade lode zones and a more extensive lower grade stockwork. A recent drill hole, 287m deep and designed to intersect the stockwork at depth achieved this objective and also intersected four additional gold lode zones lying above the stockwork. This increases the number of mineralised lode structures or zones identified at Clontibret to 38. Clay Lake More recently, your Company announced the discovery of an extensive gold-in-soil anomaly on its Clay Lake target in County Armagh, 7km north-east of Clontibret. Values ranging up to 1,531 parts per billion gold (1.53g/t) have been returned, the highest gold-in-soil values yet encountered on your Company's Irish exploration licenses. The new anomaly measures about 2km by 1km (141 ha), is larger than Clontibret, and carries average gold-in-soil values that are twice the average of those recorded at nearby Clontibret. The anomaly is named after the Clay Lake nugget containing 28g of gold, found in a stream bed in the 1980s. Your Company has long held the view that the Clay Lake nugget is clear evidence of the area's gold potential, and has actively been seeking the source of this nugget for a number of years. These latest results, with the highest gold-in-soil values encountered anywhere in our licence area, may well indicate that the source of the nugget lies within the new anomaly. It could well be the Jewel in the Crown for your Company. The new discovery lies within the 50km-long gold bearing trend delineated by your Company on its licence area which straddles the border between Northern Ireland and the Republic. The licences, which cover over 1,000km² in Counties Armagh, Monaghan and Cavan, follow the surface expression of the Orlock Bridge Fault, a major geological structure believed to have influenced mineralisation in the area. Potential Gold Mineralisation in the Licence Area Your Company's technical staff now believe, on the basis of the one million ounce gold resource outlined at Clontibret, the potential of the remaining 80 per cent of that target, the new discovery at Clay Lake and other large gold-in-soil anomalies that have been outlined elsewhere on your Company's exploration licences in Ireland, that the total gold potential on these licences, although conceptual in nature, now lies in the 15-20 million ounce range. Whilst there has been insufficient exploration to date to define such a mineral resource, and there is no certainty that further exploration will result in a resource of this magnitude being realised, the directors believe that the potential is clear and the possibilities exciting. Technical and Economic Studies Preliminary in-house technical and economic studies suggest that the one million plus ounce resource at Clontibret has the potential to become an economically viable mining project. These studies are at a very early stage, however, and must be treated with caution as they are based on the resource as estimated to date, over half of which is in the Inferred category at this stage. We will continue to advance the delineation process with a view to increasing both the total resource estimate and the proportion in the Indicated or Measured categories. This would provide sufficient confidence in the resource estimate to allow technical and economic parameters to be applied, thus enabling evaluation of the economic viability of the deposit with a higher degree of certainty. Finance The results for the half-year are set out below. The loss for the period was € 202,464 (2007: loss €166,698). As in previous periods I have supported the working capital requirements of the Company and in the period under review have advanced aggregate loans amounting to €1,831,111. The loans have been made under normal commercial terms in accordance with a letter of support dated 11 November 2008. This letter provides confirmation of support from me for the current financial year ending 31 May 2009. The loans have been and will continue to be made on normal commercial terms. The interest on the loans is currently accruing at a rate of 8.25 per cent. per annum. The loans may be repaid at anytime but I have confirmed to the Company that I will not request repayment, other than in exceptional circumstances, within a period of less than one year. The other directors consider, having consulted with the Company's Nominated Adviser, that the terms of the loan are fair and reasonable in so far as the Company's shareholders are concerned. Your Board is considering various options to finance your Company's activities going forward. Directors and Staff I would like to thank my fellow directors, staff and consultants for their support and dedication, which has enabled the continued success of the Company. I look forward to the future with confidence. Professor Richard Conroy Chairman 23 February 2009 This release has been approved by Kevin McNulty PGeo, who is a member of the Company's technical staff, who holds a BSc/MSc in Geology and Remote Sensing, in accordance with the guidance note for Mining, Oil & Gas Companies issued by the London Stock Exchange in respect of AIM Companies, which outlines standards of disclosure for mineral projects. Further enquiries: Conroy Diamonds and Gold Plc Tel: 00 353 1 661 8958 Professor Richard Conroy John East & Partners Limited Tel: 020 7628 2200 Simon Clements / Virginia Bull City Capital Corporation Limited Tel: 020 3178 3399 Charles Dampney Lothbury Financial Limited Tel: 020 7011 9411 Ron Marshman / Michael Padley UNAUDITED INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 NOVEMBER 2008 Six months Six months Year ended ended ended 30 November 30 November 31 May 2008 2007 2008 (Unaudited) (Unaudited) (Audited) € € € OPERATING EXPENSES (202,478) (166,698) (374,890) Other Income 14 - 16 LOSS BEFORE TAXATION (202,464) (166,698) (374,874) Taxation - - - LOSS RETAINED FOR THE PERIOD (202,464) (166,698) (374,874) Loss per ordinary share - Basic and (€0.0019) (€0.0016) (€0.0035) diluted UNAUDITED BALANCE SHEET AS AT 30 NOVEMBER 2008 30 November 30 November 31 May 2008 2007 2008 (Unaudited) (Unaudited) (Audited) € € € Non-current Assets Intangible assets 8,297,538 7,337,620 7,830,219 Financial assets 2 2 2 Property, plant and equipment 26,921 30,934 29,934 8,324,461 7,368,556 7,860,155 Current Assets Trade and other receivables 44,110 35,264 36,229 Cash and cash equivalents 90,676 50,606 109,432 134,786 85,870 145,661 Total Assets 8,459,247 7,454,426 8,005,816 EQUITY AND LIABILITIES Capital and Reserves Called up share capital 3,170,649 3,170,649 3,170,649 Share premium 5,491,037 5,491,037 5,491,037 Capital conversion reserve fund 30,617 30,617 30,617 Share based payments reserve 359,117 181,982 284,604 Retained losses (2,870,375) (2,459,735) (2,667,911) Total Equity 6,181,045 6,414,550 6,308,996 Non-current Liabilities Trade and other payables: Amounts 1,831,111 942,413 1,421,948 falling due after more than one year Total non-current liabilities 1,831,111 942,413 1,421,948 Current Liabilities Trade and other payables: Amounts 447,091 97,463 274,872 falling due within one year Total Current Liabilities 447,091 97,463 274,872 Total Liabilities 2,278,202 1,039,876 1,696,820 Total Equity and Liabilities 8,459,247 7,454,426 8,005,816 unaudited Cash Flow Statement For the SIX MONTHS Ended 30 NOVEMBER 2008 30 November 30 November 31 May 2008 2007 2008 (Unaudited) (Unaudited) (Audited) € € € Cash used by operations (18,768) (105,012) (159,261) Tax paid - - - Net cash used in operating activities (18,768) (105,012) (159,261) Cash flows from investing activities Investment in mineral interest (407,053) (200,743) (561,640) Payments to acquire property, plant and (2,098) (4,837) (10,401) equipment Net cash used in investing activities (409,151) (205,580) (572,041) Cash flows from financing activities Shareholders loan advances 409,163 255,245 734,780 Net cash from financing activities 409,163 255,245 734,780 (Decrease)/Increase in cash and cash (18,756) (55,347) 3,478 equivalents Cash and cash equivalents at beginning of 109,432 105,954 105,954 period Cash and cash equivalents at end of 90,676 50,607 109,432 period Notes to the Financial Statements 1. Publication of non-statutory accounts The financial information set out in this document does not comprise the statutory accounts of the Company. 2. Loss per share The calculation of the loss per ordinary share of €0.0019 (2007: loss €0.0016) is based on the loss for the half year of €202,464 (2007: loss €166,698) and the weighted average number of ordinary shares on a basic and fully diluted basis during the period of 105,688,297 (2007: 105,688,297). Share options and warrants are not included in the calculation of fully diluted shares since the Company incurred a loss in both periods which results in these potential shares being anti-dilutive. 3. Dividends No dividends were paid or are proposed in respect of the period ended 30 November 2008. 4. A copy of the half-yearly report will be available on the Company's website www.conroydiamondsandgold.com and will be available from the Company's registered office, 10 Upper Pembroke Street, Dublin 2. It will also be forwarded to shareholders who requested a hard copy.

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