Drilling Report

Conroy Diamonds & Gold PLC
25 October 2001

                       CONROY DIAMONDS AND GOLD P.l.c.

                  YEAR OF PROGRESS ON TWO FRONTS FOR CONROY

  * Armagh Gold Discovery Validates Company's Concept Of Large Gold Belt
  * Gold-In-Soil Anomaly At Slieve Glah Now Extends Over 1.7km
  * Recovery Of G9 Garnet Provides Early Boost To Finland Diamond Play

Further outstanding progress with its gold exploration campaign in Ireland and
early success in the search for diamonds in Finland are highlighted by
Professor Richard Conroy, Chairman of Conroy Diamonds and Gold P.l.c., in the
annual report for the year ended May 31 2001.

The beginning of the year coincided with the start of trading in the Company's
shares on the Alternative Investment Market (AIM). The mid-year extension of
the gold exploration programme into Co. Armagh was quickly rewarded with the
discovery at Cargallisgoran. And as the financial year drew to a close, Conroy
moved further afield, extending its exploration activities into Finland, where
diamonds are the main target. Again it made early progress, with initial till
sampling returning kimberlitic indicator minerals, including an all-important
G9 garnet.

The new gold discovery at Cargallisgoran, 6.5km along strike from its
Tullybuck-Lisglassan deposit in Co. Monaghan, is 'both gratifying and
significant', the Chairman states. The discovery was made as a result of
trenching and drilling of only a small portion of what is a very extensive
(3.5km by 1.5km) geochemical anomaly. The potential of remainder is now being
evaluated.

Cargallisgoran provides solid support for Conroy's concept that
Tullybuck-Lisglassan is not an isolated deposit but is part of a much larger
Armagh-Monaghan Gold Belt, now shown to extend over an area measuring at least
20km by 3km. Cross-faulting has broken up the whole belt into a series of
discrete fault blocks with Tullybuck-Lisglassan located in one block and
Cargallisgoran within another. The two deposits are separated by at least one,
and possibly two, further untested fault blocks, Conroy states.

Further encouragement in this regard was provided during the year by the
findings of an independent European research team, led by the British
Geological Survey, which studied a number of gold deposits in Europe,
including Tullybuck-Lisglassan. The findings confirmed the conclusions
previously reached by Conroy's technical consultants that the gold and base
metal mineralised structures at Tullybuck-Lisglassan have different
orientations. The European team also successfully applied two new techniques
for gold exploration in the Longford-Down Massif.

Conroy therefore believes there is a very real possibility that a number of
economic gold deposits could be located within the area of the Longford-Down
Massif covered by the Company's exploration licences. This has been extended
and now comprises a contiguous block of 1,500km2 straddling both the border
between the Republic and Northern Ireland and the line of the Orlock Bridge
fault, the regional geological structure which the Company believes most
influenced the creation of the Armagh-Monaghan Gold Belt.

Conroy continues to progress its exploration programmes for gold and base
metals elsewhere within its licence area. In particular, infill soil sampling
at Slieve Glah in Co Cavan, some 45km south-west of Tullybuck-Lisglassan, has
extended a series of previously outlined discrete gold anomalies into one
continuous anomaly approximately 1,700m long. Work is continuing to evaluate
the potential of this area, Conroy states.

To the south of the Armagh-Monaghan Gold Belt, the base metal potential of a
50km2  area is being investigated. Numerous base metal veins have been worked
there in the past and, geologically, the area is very similar to the prolific
Leadhills/Wanlockhead mining field in Scotland.

CONROY PLC AGREES TO SHARE FINLAND EXPERTISE

As part of the move into Finland, Conroy Diamonds and Gold P.l.c. has reached
agreement with Conroy P.l.c. (the two companies have common directors) to
share the extensive information, knowledge and expertise which Conroy P.l.c.,
has acquired in relation to Finland. In addition, Conroy Diamonds and Gold has
contracted the services of the Geological Survey of Finland (GSF), with its
invaluable experience and expertise in the geology of Finland, to work in
association with your Company's staff and consultants.

The results of the initial till sampling programme in Finland, carried out by
the GSF on behalf of Conroy Diamonds and Gold, have been most encouraging, the
Chairman states. Kimberlitic indicator minerals, including an all-important G9
garnet, have been recovered from the vicinity of a classic 'bullseye'
aeromagnetic anomaly. To find a G9 garnet at such an early stage is
particularly good news and suggests the Company's selection of exploration
targets is well founded, says Professor Conroy.

The Company also holds Claim Reservations in Finland for gold, platinum group
metals and base metals exploration.

FINAL RESULTS

The Company announced its final results for the year ended 31 May 2001. The
results are reported in Euros. The loss for the year amounted to Euro305,369.
During the year, Conroy raised Euro933,264 net of expenses through the issue
of 3,376,000 new ordinary shares. The accounts, therefore, show an increase in
shareholders' funds of Euro627,895.

Note:

Most diamonds are formed in kimberlitic pipes. Certain minerals are unique to
these pipes and are known as kimberlitic indicator minerals. Some of these
minerals are derived from the same source rock within the kimberlite as
diamonds. In this context, G9 and G10 garnets are of particular importance and
are known as diamond indicator minerals. Kimberlitic pipes may also show
magnetic highs or lows characterised by a bulls eye pattern in northern
latitudes.

Further Information

Professor Richard Conroy,

Conroy Diamonds and Gold P.l.c.

Tel: [phone]

www.conroydiamondsandgold.com