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 gold exploration and development company planning to develop a gold mine at Clontibret in Ireland, announces its results for the six months ended 30 November 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$12.26/t * Further encouraging results at nearby Clay Lake Gold Target * High zinc values reported from Base Metal Exploration Commenting, Chairman, Professor Richard Conroy said: "I am delighted that the results of the metallurgical and mineralogical testwork at Gold Fields/Biomin in South Africa have confirmed the viability of the proposed gold mine at Clontibret and that a review by independent consultants Tetra Tech Inc. validated the Preliminary Economic Assessment (Scoping Study) process design criteria and operating costs and in particular that the capital cost of the proposed processing plant is now estimated to fall from US$ 20.16 million to US$ 18.5 million and the process operating costs to fall from US$ 13.64/t to US$ 12.26/t." For further information please contact: Conroy Gold and Natural Resources plc Tel: +353-1-661-8958 Professor Richard Conroy, Chairman Sanlam Securities UK Limited (Nomad) Tel: +44-20-7628-2200 Simon Clements/Virginia Bull Hybridan LLP (Broker) Tel: +44-20-7947-4350/ 4361 Claire Noyce/William Lynne IBI Corporate Finance Limited (ESM Adviser) Tel: +353-766-234-800 Ger Heffernan Lothbury Financial Services Limited Tel: +44-20-3440-7620 Michael Padley/Michael Spriggs Hall Communications Tel: +353-1-660-9377 Don 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 six months ended 30 November 2013. This was a period of further significant progress for your Company during which the viability of your Company's proposed mine at Clontibret was confirmed and excellent results were reported from your Company's gold and base metal exploration targets. Confirmation of Amenability and Technical Viability of Clontibret Mining Project The final results of the mineralogical and metallurgical testwork programme on the ore grade material sent to Goldfields/BIOMIN in South Africa confirmed the amenability and technical viability of using the BIOX® technique to process the ore at Clontibret. The mineralogical and metallurgical testwork, which was supervised and managed by independent consultants Tetra Tech Inc. ("Tetra Tech") was carried out on 350kg of drill core representative of both lode and stockwork ore grade material with a 10 per cent dilution factor with a grade similar to that expected for run of mine. The testwork results indicated fast oxidation kinetics, achieving over 90 per cent oxidation for both lode and stockwork concentrate samples. Maximum gold extractions achieved were 90.4 per cent and 87.1 per cent respectively with overall recoveries confirmed by Tetra Tech to be in line with their independent Scoping Study. BIOX®, which is a well established bacterial oxidation technique, was recommended by Tetra Tech as an appropriate technology for treating the gold sulphide concentrate at the proposed gold mine at Clontibret. BIOX® is an environmentally friendly proven technology with a number of plants in operation worldwide including South Africa, Ghana, Brazil, China and Australia. The BIOX® process gives improved rates of gold recovery at significantly lower capital and operating costs. A review by Tetra Tech of the results of the final mineralogical and metallurgical 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 process design parameters, including the amenability of the ore to bio-oxidative pre-treatment, and the suitability of the proposed BIOX® oxidation process. Other than a lower sulphur grade in concentrate, results were as anticipated in the PEA. The decreased sulphur grade implies savings in both capital and operating costs. In relation to these savings the capital cost for the proposed processing plant is now estimated by Tetra Tech at US$ 18.5 million compared with the US$ 20.16 million in the PEA and the process operating costs are estimated to fall from US$ 13.64/t to US$ 12.26/t. Exploration Gold Targets Exploration of your Company's gold targets continued with further highly encouraging results along the thirty mile gold trend in the Longford-Down Massif in Ireland, which your Company has discovered. Clay Lake Gold Target Further excellent progress has been made at your Company's Clay Lake Target, 3½ miles from Clontibret. This gold target is a carbonaceous shale hosted gold deposit, encompassing many of the geological attributes of major sediment hosted gold deposits. Examples of these deposits include the multi-million ounce gold deposits at Tien Shan such as the 169.3m oz Muruntau Mine, one of the 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 over 453,000oz gold in 2011. Base Metal Targets An ongoing evaluation of old lead workings within your Company's licence area as part of your Company's exploration programme for base metals yielded highly positive zinc results of up to 30 per cent. Grab samples were taken from twelve of the old lead workings spoil heaps in the Company's licence area. Most of these samples gave high lead values as might be expected although a lead value of 7.31 per cent. at the Tassan workings in County Monaghan was particularly high. Two samples from the Cornaurney workings in County Cavan gave exceptionally high zinc levels of 30.00 and 18.40 per cent. respectively. These samples also had 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 of 200ppm and 100ppm and cadmium of 2000 ppm and 688ppm. Your Company has also discovered an extensive zinc-in-soil anomaly on its prospecting licences in Counties Monaghan and Armagh. This together with very high zinc levels detected in the old mine working spoil heaps in County Cavan add to the overall metalliferous potential of your Company's licence area for both 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 equity subscription and convertible debt issue. Outlook Your Company looks forward to continued progress with its planned gold mine at Clontibret 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 for their support and dedication, which has enabled the continued success of the Company. I look forward to the future with confidence. Yours faithfully, Professor Richard Conroy Chairman 3 February 2014 INCOME STATEMENT FOR 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 12 receivable 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 INCOME FOR 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 comprehensive income TOTAL COMPREHENSIVE INCOME FOR THE (131,527) (197,683) (423,979) PERIOD - ENTIRELY ATTRIBUTABLE TO EQUITYHOLDERS STATEMENT OF FINANCIAL POSITION AS 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 STATEMENT FOR 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) 352,192 491,000 loan Convertible loan 996,075 - - Bank interest received - - 12 Interest paid on shareholder loan - - - Net cash generated from financing 451,351 352,192 986,049 activities (Decrease)/Increase in cash and cash (52,356) (195,879) (166,783) equivalents Cash and cash equivalents at 71,864 238,647 238,647 beginning of period Cash and cash equivalents at end of 19,508 42,768 71,864 period STATEMENT OF CHANGES IN EQUITY FOR 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 - 74,513 payments 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) 13,224,751 2013 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 - 74,513 payments Loss for the - - - - (197,684) (197,684) period At 30 November 8,112,257 7,872,573 30,617 955,221 (4,415,391) 12,555,277 2012 Notes to the Financial Statements 1. Basis of preparation The half-yearly financial statements have been prepared on the basis of the recognition and measurement requirements of International Financial Reporting Standards (IFRS) as adopted by the European Union (EU), and their interpretations adopted by the International Accounting Standards Board (IASB). The accounting policies used in the preparation of the half-yearly financial information are the same as those used in the Company's audited financial statements 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) is based on the loss for the financial year of €131,527 (2012 - €197,683) and the weighted average number of ordinary shares in issue during the period of 293,465,001 (2012 - 270,408,542). Since the Company incurred a loss the effect of share options and warrants would be anti-dilutive. 3. Dividends No dividends were paid or are proposed in respect of the six months ended 30 November, 2013. 4. Copies of Accounts A copy of the Half-Yearly Report will be available on the Company's website www.conroygold.com and will be available from the Company's registered office, 10 Upper Pembroke Street, Dublin 2.

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