Exploration Report

Persian Gold PLC
07 July 2005


              Persian Completes First Phase of Gold Sampling in 
                  Northwestern Iran with Positive Results


Highlights



  • First Phase of sampling completed
  • Gold anomalies discovered
  • Application for five further exploration licenses



Persian Gold (AIM: PNG) which is exploring for gold in Northwestern Iran is
pleased to announce that as a result of its initial sampling and analysis, the
Company is applying for five exploration licences covering an additional 200
square kilometres.  Field crews have begun the process of second phase follow up
sampling of the initial gold anomalies that have been discovered



The first phase of the rock chip geochemical sampling program has been
completed. From over 2,500 geochemical analyses a number of gold anomalies have
been discovered.  Recent results have identified two particular areas with
distinct potential.  We have applied to replace the 1800 sq km study concession
with 8 x 40 sq km exploration licences.


John Teeling, Chairman said:



'These results are very encouraging. The positive results - whilst at a very
early stage - have lead us to increase the number of applications for full
exploration licences from 3 to 8'.



Mike Thomsen, senior technical adviser stated:



'In South America, the discovery process for most of the major gold deposits of
the quartz-alunite type follows a common process:



  • Identification of large areas of quartz-alunite alteration in volcanic
    rocks
  • Wide spaced first phase rock chip geochemical sampling for gold
  • Recognition and interpretation of initial gold anomalies
  • Detailed follow up sampling of initial gold anomalies
  • Drilling of anomalies and discovery



In our current program, Persian Gold is well advanced in the exploration and
discovery process.  The initial gold anomalies, especially in two areas, are
most encouraging in that they are found in areas of strong quartz and alunite
alteration with nearby silica-iron oxide breccias indicating a strong and
dynamic hydrothermal system.  I am very pleased with the results of the program
to date and we are anxious to continue with the second stage of geochemical
sampling.'





For further information please contact:



Persian Gold plc
John Teeling, Chairman                                  + 353 87 258 1178


Bell Pottinger Corporate & Financial                    + 44 207 861 3232
Nick Lambert
Paddy Blewer


Rowan Dartington                                        + 44 117 933 0020
Ian Rice




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