Deal Signed on La Zarza-Spain

Ormonde Mining PLC
01 July 2004

                               Ormonde Mining plc

          Deal Signed on La Zarza, Spain: A Major Gold-Copper Resource

The Board of Ormonde Mining plc ("Ormonde" or "the Company") is very pleased to
announce that it has signed a Joint Venture agreement with Spanish company Nueva
Tharsis SL on the La Zarza gold-copper deposit in southern Spain. Details of
Inferred Resources at La Zarza (estimated by the previous operator) and other
highlights of the deal are as follows:


  • A gold resource of 1.1 million ounces. This resource is contained in two
    units: "Silicatado" with 5.9 million tonnes at 5.0 g/t gold and 50 g/t
    silver (950,000 ounces of gold and 9.5 million ounces of silver), and
    "Stockwork" with 2.1 million tonnes at 2.6 g/t gold and 11 g/t silver
    (175,000 ounces of gold and 740,000 ounces of silver).


  • A copper resource in the Silicatado unit of 2.9 million tonnes at 2.8 per
    cent copper (180 million pounds of copper).


  • Upside potential to increase the resource exists as the deposit is open to
    the northeast and at depth.


  • Located in the Iberian Pyrite Belt, a well-established mining district
    where the local government is very supportive of the mining industry.


  • Importantly, the deposit is within a Mining Concession, meaning that
    certain permitting procedures for any possible development are already in
    place.


  • Ormonde to earn 70 per cent of the project by spending €1.8 million over 3
    years. In addition, Ormonde will issue 500,000 Ordinary Shares in the
    Company to Nueva Tharsis.


Located in the Iberian Pyrite Belt 80 kilometres from Seville, La Zarza
(pronounced "La Thartha") was historically mined for pyrite from both open pit
and underground workings, but neither the adjacent gold nor copper resources
have been exploited to-date. The existing resources were estimated by the
previous operator, SEIEMSA (Normandy Mining 60 per cent / BRGM 40 per cent) in
joint venture with Nueva Tharsis.


The resources estimated within the Silicatado and Stockwork units are as
follows:

                        Million Tonnes               Gold         Total Gold             Silver        Total Silver
                                                                     (ounces)              (g/t)            (ounces)
                                                    (g/t)
        Silicatado                 5.9                5.0             950,000                 50           9,485,000
         Stockwork                 2.1                2.6             175,000                 11             740,000
             Total                 8.0                              1,125,000                             10,225,000

                        Million Tonnes             Copper        Total Copper
                                                                     (pounds)
                                               (per cent)
        Silicatado                 2.9                2.8         180 million


The old underground workings and drilling to-date indicate that the deposit
consists of several steeply dipping zones which vary in thickness from a few
metres up to 30 metres, and extends along strike for at least 1,200 metres and
to depths of at least 450 metres. The resource would have potential as both an
open pit and an underground operation.


Reports of previous metallurgical testwork, carried out in the mid-1990s,
indicate that gold recoveries of 50-55 per cent have been achieved by
conventional cyanidation. The Company believes that higher gold recoveries can
be attained by employing recent technology such as a combination of ultra-fine
grinding and intense leaching methods. Recoveries of copper from the copper
deposit are expected to be high.


The following work programmes will be implemented over the next 12 to 18 months:


  • A thorough review and compilation of all existing data (already underway);


  • Verification and classification of the mineral resource in accordance with
    JORC standards;


  • Drilling programme to: a) confirm the current interpretation of
    mineralized units; and b) obtain representative samples of core for
    metallurgical testwork in order to establish the optimum processing route.


The deal is the successful culmination of Ormonde's strategy to maintain a
competitive advantage in Spain through its Spanish Executive. It demonstrates
how local insight, personal experience and established contact networks allow
Ormonde to acquire advanced assets or projects that have been dormant or passed
over for scale or corporate reasons.


Managing Director Kerr Anderson, who has 10 years of experience managing
projects in the Iberian Pyrite Belt from grass-roots exploration to major
acquisitions, commented: "The La Zarza Joint Venture is a huge step forward for
Ormonde, the addition of this major gold-copper resource at good grade being an
extremely significant development for a company of Ormonde's size." Ormonde's
current market capitalization is c.€12 million.


Ormonde Mining plc is a European exploration company trading on the Exploration
Securities Market (ESM) of the Irish Stock Exchange and on the SEAQ platform in
London.  The Company is focused on developing gold projects in Europe with a
particular emphasis on Spain. Further information about Ormonde and its
activities are available on its website at www.ormondemining.com.


Current metal prices: Gold $400/ounce; Silver $6.00/ounce; Copper $1.2/pound


Enquiries to:

Ormonde Mining plc - [phone] - [e-mail]

Kerr Anderson - Managing Director

Mike Donoghue - Non-Executive Chairman

Fraser Gardiner - Investor and Media Relations

John Carroll - Director - [phone]

1 July 2004


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