Preliminary Results

Ormonde Mining PLC
08 May 2006


08 May 2006
                               Ormonde Mining plc

               Final Results for the year ended 31 December 2005


DUBLIN & LONDON:  08 May 2006 - Ormonde Mining plc ("Ormonde" or "the Company")
announces its final results for the year ended 31 December 2005.


                                   HIGHLIGHTS

  • Significant progress achieved on the Company's Spanish mineral assets with
    advances in particular being made at the La Zarza Copper-Gold Project.

  • Metallurgical testwork demonstrates that a more economical than expected
    flotation treatment route is applicable to La Zarza with the recovery of
    gold, copper and silver into saleable concentrates.

  • Ormonde's first JORC-compliant Mineral Resource estimate confirms the La
    Zarza deposit could sustain a robust mine production rate and an adequately
    long mine life to support a production decision.

  • Exploration results from the Salamanca Gold Project indicate the potential
    for large, previously unrecognised bulk-tonnage gold deposits.

  • Investigation of tungsten-bearing tailings at Salamanca offers the
    opportunity for low cost and low risk early cash flow.

  • Reported loss of €420,850 - management continues to do its utmost to
    minimize overheads and maximize in-the-ground investment.


Mike Donoghue, Chairman of Ormonde commented:

"With La Zarza already on the path towards production, and with some excellent
progress being made on our exploration properties, I anticipate that 2006 will
be a landmark year for your Company".


Enquiries to:

Kerr Anderson, Managing Director,
Ormonde Mining plc             Tel: [phone]

Fraser Gardiner, Director
Ormonde Mining plc            Mobile: [phone]

Simon Rothschild,
Bankside Consultants             Tel: [phone]



                               CHAIRMAN'S REVIEW


OVERVIEW

The year 2005 was another busy and productive period which saw Ormonde achieve
significant progress on its Spanish mineral assets.  Our focus during the year
remained on the advancement of the La Zarza Copper-Gold Project towards
production.  We can now move forward with confidence to the Feasibility Study
phase in 2006, with completion of the initial drilling programmes, our first
JORC-compliant mineral resource estimate and positive metallurgical testwork
results.  Notwithstanding the emphasis on La Zarza, we also made excellent
progress in our discovery-driven exploration programmes, particularly at
Salamanca, where several gold-tungsten targets and opportunities have been
identified. We expect early and rapid progress at Salamanca during the year
ahead.


OPERATIONAL HIGHLIGHTS

In last year's review I stated that the key to the development of La Zarza would
be the establishment of an optimal ore processing route.  The most significant
news that we delivered during the year, therefore, was the early results from
the investigative phase of our metallurgical testwork on La Zarza drilling
samples.  Having expected the extraction of gold to require a capital-intensive
and high operating cost processing route of ultra fine-grinding followed by
leaching, we were very pleased to establish that a much more economical
flotation treatment route is applicable to the La Zarza Gold Silicatado, with
the recovery of gold, copper and silver into saleable concentrates.   The
testwork also established that recovery of the copper to a flotation concentrate
in the adjacent Copper Silicatado would be higher than expected.  In short, the
positive impact on the Project's economics of the use of the same flotation
process to recover the gold, copper and silver, could be very significant
indeed.

Of equal importance to the favourable metallurgical results is our new
JORC-compliant Mineral Resource estimate, which shows La Zarza to contain 85,000
tonnes of copper, 486,000 ounces of gold and 6.9 million ounces of silver, or
1.3 million ounces of gold equivalent.  These figures confirm that the La Zarza
deposit could sustain a robust mine production rate and an adequately long mine
life to support a production decision and we see clear potential to expand upon
these resources with our ongoing drilling.  Our Preliminary Assessment Study
will soon provide us with the necessary cost figures to allow us to proceed to
the Feasibility Study stage, but I am already very confident that in La Zarza we
have an excellent core asset to underpin the growth of the Company.

Our primary objective is to take La Zarza into production.  However, we also
recognize that substantial value can be added to the Company through
well-directed and successful exploration and discovery.  I am therefore very
pleased to report that our first year of field work on our extensive Salamanca
licences has delivered some exceptional results, suggesting the potential for
large, previously unrecognized bulk-tonnage gold deposits.  Extensive
gold-in-soil geochemical anomalies, supported by rock sampling results, will
provide initial drilling targets.  It is still early days on this project and
only a drilling programme will tell us the size and the overall bulk grade of
the mineralization underlying the anomalous zones.  However, I look forward to a
period of intense activity in Salamanca in the coming months.

We have also continued to make progress on other gold projects in our
exploration portfolio including drilling at Tracia and Salamon.  At Tracia,
detailed soil geochemistry has identified new drilling targets, and at Salamon,
where last year's drilling included an intersection of 4.8 metres grading 25.3 
g/t gold, we will continue our evaluation of the deposit's deeper potential.

Finally, I should report that as a result of our on-going endeavours to acquire
or develop a more immediate cash flow mining operation in Spain, in February of
this year we signed an option agreement to investigate the tungsten-bearing
dumps and tailings from the historic Barruecopardo Open-Pit Tungsten Mine,
located on our Salamanca licences.  We believe that processing this material
could give us early cash-flow and exposure to upside in the tungsten price.  The
increased demand, reduced supply and lack of availability of new tungsten
projects has resulted in a return of tungsten prices closer to levels last seen
in the early 1980s.  Should our assessment confirm sufficient resource grade and
recovery at Barruecopardo, the low capital costs required for a simple gravity
recovery plant to treat these tungsten tailings could give us the opportunity to
develop a profitable operation at very low risk to the Company.  We will make a
decision on the project's feasibility by late 2006.


CORPORATE DEVELOPMENTS

On the corporate side 2005 also featured some significant events.  Our admission
to trading on London's AIM and the associated capital raising in April gave us
the foundation for the progress we made during the rest of the year.  As a
result our trading liquidity is up significantly and we have attracted new
institutions onto our share register.  We have strengthened our Board with the
appointment of two new directors, Fraser Gardiner as an executive director and
Paul Mihalop as a non-executive.  David O'Beirne and Colin Andrew stepped down
as non-executive directors during this period and on behalf of the Board I wish
to thank them both for the significant roles they have played in the development
of the Company.


FINANCIAL REVIEW

During 2005 the Company spent a total of €2.6 million, of which €420,850 is
reported as a loss for the year (2004: €375,446).  I believe that these figures
demonstrate very clearly that even as Ormonde grows and progressively ups the
scale of its operational activity, our management continues to do its utmost to
minimize overheads and maximize in-the-ground investment across its project
portfolio.

Towards the end of the year we received notification from the Spanish government
that we had been awarded central government grants totalling €320,000 on the
basis of our expenditure on the La Zarza and Tracia projects.  Besides this
being a significant sum of money to be applied to our projects, it is a welcomed
gesture from the Spanish authorities that they have confidence not only in
Ormonde and its operations, but in the mining industry as a whole.


MARKET TRENDS AND OUTLOOK

The current boom in commodity prices reflects both an overdue correction after a
prolonged downturn in which investment was minimal and a major structural
adjustment as some Asian countries embrace free-market principles and economic
expansion.  The underlying demand and lack of new projects points to a prolonged
mining cycle. This clearly is an opportune time for everyone involved in the
mining industry.  The metals of direct relevance to Ormonde - gold, copper,
silver and tungsten - are all enjoying record-high prices.  As high metal prices
appear to be with us for the longer term, this underpins Ormonde's growth
strategy of creating value in Spanish projects by taking them into production.
With La Zarza already on the path towards production, and with some excellent
progress being made on our exploration properties, I anticipate that 2006 will
be a landmark year for your Company.


Michael J. Donoghue
Chairman
05 May 2006


Consolidated Profit & Loss Account
Year ended 31 December 2005

                                                                         2005                         2004
                                                                       €000's                       €000's

Administrative expenses                                                 (451)                        (401)
Operating income                                                            -                           19

OPERATING (LOSS)                                                        (451)                        (382)
Interest receivable                                                        30                            6

(LOSS) ON ORDINARY ACTIVITIES
BEFORE TAXATION                                                         (421)                        (376)
Tax on (loss) on ordinary activities                                        -                            -

(LOSS) ON ORDINARY ACTIVITIES
AFTER TAXATION                                                          (421)                        (376)
Minority Interest                                                           -                            1

Retained (loss) for year                                                (421)                        (375)

(Loss) per Share                                                    (€0.0029)                    (€0.0033)



Consolidated Statement of Total Recognised Gains and Losses
Year ended 31 December 2005
                                                                         2005                         2004

                                                                       €000's                       €000's

(Loss) for the financial year                                           (421)                        (375)
Currency translation differences on
foreign currency net investments                                            3                            3

Total recognised gains and losses                                       (418)                        (372)


Consolidated Balance Sheet
As at 31 December 2005
                                                                         2005                          2004
                                                                       €000's                        €000's

FIXED ASSETS
Tangible assets                                                            19                            20
Goodwill                                                                  112                           112
Intangible assets                                                       3,555                         1,795
                                                                        3,686                         1,927

CURRENT ASSETS
Debtors                                                                   571                            66
Cash at bank and on hand                                                1,891                           444
                                                                        2,462                           510
CREDITORS: (amounts falling due
within one year)                                                        (236)                         (100)
NET CURRENT ASSETS                                                      2,226                           410

TOTAL ASSETS LESS CURRENT LIABILITIES                                   5,912                         2,337

CREDITORS: (amounts falling due
after more than one year)                                                   -                           (9)
NET ASSETS                                                              5,912                         2,328

CAPITAL AND RESERVES
Called-up share capital                                                 5,483                         4,636
Share premium account                                                  10,360                         6,717
Capital conversion reserve fund                                            29                            29
Shares to be issued for
Consideration                                                               -                           486
Capital reserve                                                             7                             7
Foreign currency reserve                                                    3                             3
Profit and loss account                                               (9,972)                       (9,552)
SHAREHOLDERS' FUNDS                                                     5,910                         2,326

Minority interest                                                           2                             2

                                                                        5,912                         2,328



Consolidated Cash Flow Statement
Year ended 31 December 2005


                                                                          2005                         2004

                                                                        €000's                       €000's

        NET CASH (OUTFLOW) FROM
        OPERATING ACTIVITIES                                             (821)                        (329)

        RETURNS ON INVESTMENTS AND
        SERVICING OF FINANCE

Interest received                                                           30                            6
Interest element of finance leases                                           -                          (2)

        NET CASH INFLOW FROM RETURNS ON
        INVESTMENTS AND SERVICING OF FINANCE                                30                            4

        CAPITAL EXPENDITURE AND
        FINANCIAL INVESTMENT
Sale of tangible asset                                                      18                            -
Expenditure on intangible assets                                       (1,759)                        (587)
Payments to acquire tangible assets                                       (25)                          (3)

        NET CASH (OUTFLOW) FROM CAPITAL
        EXPENDITURE AND FINANCIAL INVESTMENT                           (1,766)                        (590)

        NET CASH (OUTFLOW) BEFORE FINANCING                            (2,557)                        (915)

FINANCING

Issue of shares net of expenses                                          4,004                          895
Capital element of finance leases                                            -                         (10)

        NET CASH INFLOW FROM FINANCING                                   4,004                          885

        INCREASE/(DECREASE) IN CASH                                      1,447                         (30)


Note:

The loss per share was calculated from the loss for the period attributable to
ordinary shareholders of €420,850 (December 2004 = €375,446) divided by the
time-weighted average number of shares in issue during the period of 143,204,927
(December 2004 = 112,490,110).  There is no dilutive effect of share options on
the basic loss per share.


                      This information is provided by RNS
            The company news service from the London Stock Exchange