Condor Gold plc announces its unaudited results for the six months ended 30 June 2022

CONDOR GOLD PLC

GODALMING, United Kingdom, Aug. 16, 2022 (GLOBE NEWSWIRE) -- Condor Gold (AIM: CNR; TSX: COG) announces that it has today published its unaudited financial results for the six months ending 30 June 2022 and the Management’s Discussion and Analysis for the same period.

Both of the above have been posted on the Company’s website www.condorgold.com and are also available under the Company’s SEDAR profile at www.sedar.com.

Highlights for the three and six months to 30 June 2022:

• On March 10, 2022, the Company announced that all assay results have been received for an 8,004 m infill drilling programme on the fully permitted high-grade La Mestiza Open Pit Mineral Resource at La India Project.

  • 6.3 m true width at 6.84 g/t gold from 31.45 m (drill hole LIDC568), approximately 50 m below surface outcrop (which occurs on a rise).

  • 4.1 m true width at 15.23 g/t gold from 47.80 m (drill hole LIDC514) approximately 40 m below surface.

  • 3.6 m true width at 29.1 g/t gold from 105.70 m (drill hole LIDC471) approximately 85 m below surface.
    
    

• A significant new drill intercept within the La India Open Pit of 34.1 m true width at 2.56 g/t gold amalgamated from 2.80 m drill depth including 6.0 m at 4.3 g/t gold, 2.0 m at 5.3 g/t gold and 3.65m at 8.75g/t gold (drill hole LIGT536). 28.7 m true width at 2.62 g/t gold in the hanging-wall of historic mine workings (drill hole LIGT528) (collectively, the “New Drill Intercepts”).
  
  

• Completed the technical studies needed for a Definitive Feasibility Study covering the La India open pit, the processing plant facility and location, tailings storage facility, waste dump locations, explosive magazine, power supply, surface hydrology, hydrogeology (dewatering the pit), geochemistry, metallurgy, environmental and social.
  
  

• Continued with acquisitions of land at the La India open pit and associated mine site infrastructure. To date, 99.6% of the core areas have been purchased.
  
  

• Site clearance of 14 hectares has been completed for the processing plant location, including areas for offices, warehouses, a stockpile and a buffer zone.
  
  

• Completion in June of a private placement of 11,607,149 units of the Company at a price of 28p per unit, including a Directors’ subscription of 1,833,573 units to raise in aggregate gross proceeds of £3,250,000 before expenses. Each unit was comprised of one new ordinary share with a nominal or par value of 20p per share and one-half of one ordinary share purchase warrant. Each whole warrant, which is unlisted and fully transferable, entitles the holder thereof to purchase one ordinary share at a price of 35p for a period of 36 months. The Placing was arranged directly by the Company with institutional and other investors and its broker SP Angel.
  

Mark Child, Chairman and Chief Executive of Condor Gold, commented:

“Condor made significant advances during the 6 month period de-risking the fully permitted La India Project to a near construction ready status and completing all technical studies for a Feasibility Study on La India open pit. 99.6% of the land for the key areas has been purchased and 14 hectares of land have been cleared in the location of the processing plant facility. Drill results from infill drilling on Mestiza open pit of 6.3 m true width at 6.84 g/t gold from 31.45 m and 3.6 m true width at 29.1 g/t gold are both reassuring of the high-grade nature of the deposit and continuity of grade. The wide zones of mineralisation within the La India open pit, near surface of 34.1 m true width at 2.56 g/t gold amalgamated from 2.80 m drill depth are confirmatory in nature. The Company is on track with its strategic objective of constructing and operating a processing plant producing circa 100,000 oz gold per annum, then materially expanding the production capacity while demonstrating a potential 5M oz Gold District”.

Chairman’s Statement For The Three And Six Months to 30 June 2022

Dear Shareholder,

I am pleased to present Condor Gold Plc’s (“Condor”, the “Company” or the “Group”, www.condorgold.com or if you are viewing from Canada ca.condorgold.com) unaudited interim financial report for the three and six months ended 30 June 2022.

The focus during the 6 month period has been the finalisation of the technical studies at La India Project required for a Feasibility Level Study (“FS Study” or “Feasibility Study) on the La India open pit utilising the new SAG Mill package acquired by Condor in February 2021. La India Project has been materially de-risked and is nearing a construction ready status. A FS Study increases the confidence of the Project, incorporating a Feasibility Level engineering design, and +/- 15% capital and operating costs. This in turn will facilitate Project financing ahead of Project construction. Condor staff and our contractors at Hanlon Engineering, Tierra Group International and SRK Consulting (UK and USA) have been diligently pursuing the supporting work for the study for over 18 months and have made substantial headway in completion of that work, such that all technical studies are complete save the final analysis. There has been a slight delay in the delivery of the FS Study due to the requirement to undertake additional metallurgical testwork and finalise the designs on the processing plant.

On 4^th August 2022, the Company announced the confirmatory metallurgical testwork demonstrated that gold recovery is independent of grade and a fixed gold recovery of 91% assuming a 75 micron grind size will be used in the project economics of the forthcoming Feasibility Study. Gold extraction from the 11 variability composites averaged 92.6% at the 75 micron grind size, which is reduced by 2% to allow for gold being locked up in the processing plant, which is sometimes referred to as inherent plant inefficiencies. Gold extraction from the four low grade composites averaged 93.8% at the 75 micron target grind, indicating a gold recovery of 91.8% after a 2% reduction to allow for gold being locked up in the processing plant. At a finer grind size of 53 microns an average gold extraction of 94.7% was achieved, indicating a potential upside gold recovery of about 93%. The selection of the composites by both grade and approximate year of production provides confirmation that the mill recovery will not be materially affected over the life of the La India Mine.

During the first half of 2022, the Company has been focused on de-risking La India Project by advancing and completing several technical and engineering studies for the FS Study, some of which are a condition of the Environmental Permit. The current status of the FS Study is:

• A new geological model to FS level has been completed. It includes a lithological, weathering and structure model. It incorporates approximately 3,500 m of infill drilling completed in 2021.

• The Tailings Storage Facility (“TSF”) and 2 water retention ponds have been fully designed and engineered with drawings one step short of “issued for construction”, which is beyond a FS level detail of design. Tierra Group Inc, Denver, Colorado has completed site visits and is conducting the engineering studies. 23 geotechnical drill holes and 55 geotechnical test pits have been completed.

• The stormwater attenuation structure at La Simona has been designed to FS level.

• Completion of the design of the site wide water balance (“SWWB”), including a surface water management plan by SRK Consulting (UK) Limited (“SRK”). SRK’s work includes the area of the permitted La India, America and Mestiza open pits. The ultimate objective of the exercise is to produce engineering plans for the installation of the physical components of a management system, including the piping, pumping and structural requirements that will satisfy Nicaraguan authorities and at the same time meet the design standards for a feasibility study. The SWWB will include consideration of the pit dewatering contributions (i.e. subsurface hydrology). SRK’s remit includes an emphasis on training and capacity building for the local Condor team to ensure full ownership and facilitate implementation and sustainability of the SWWB.

• Hydrogeology / pit water management - Condor successfully intercepted the deepest level of the 1950s-era underground mine workings, providing confidence that the said workings are suitable to tap in to, in order to draw down ground water levels and support depressurization of the pit slopes. A test borehole close to the historical mineshaft was drilled in November 2021 and additional boreholes were drilled to the south and are locations for the long-term pumping station.

• The processing plant designs to FS level have been completed by Hanlon Engineering (owned by GR Engineering Services in Australia) using the new SAG Mill packaged purchased by Condor in February 2021. The processing plant designed has been laid out with the ability to double capacity from 2,800tpd.

• Site preparation and clearance of 14 hectares around the location of the processing plant has been completed.

• Pit Geotechnical – approximately 2,800 m of geotechnical drilling was completed by December 2021. Pit angles to FS level have been received and designed by SRK. This involved oriented core drilling, followed by televiewer logging. SRK’s geotechnical report is currently subject to a third party review.

• Mine and waste dump schedules for a number of mining scenarios have been completed to a level that can be submitted to MARENA. The FS level mine and waste dump schedules have been completed.

• The power studies completed to FS level. Several meetings have been held with the Ministry of Energy and Mines. National grid electricity pylons are located 700 meters from the processing plant. Government is building a new electricity sub-station 12km from the processing plant; designs for supplying grid power via the new sub-station are underway.

• The compensation plan under the local law is to replace every tree removed with 10 new trees. Condor has a tree nursery which currently has approximately 8,000 trees.
  

The Company’s twin strategy remains the construction and operation of a base case processing plant with capacity of up to 2,800 tonnes per day (“tpd”) capable of producing approximately 100,000 oz of gold per annum using the complete new SAG Mill package already purchased, to materially increasing this production capacity, and proving a major Gold District of 5 M oz gold potential at the 588km² La India Project, in Nicaragua.

The Company continues to enhance its social engagement and activities in the community, thereby maintaining our social licence to operate. Condor has strengthened its community team and stepped up social activities and engagement. The main focus locally is the drinking water programme, implemented in April 2017. A total of 340 families are currently benefiting; they receive five-gallon water dispensers each week. The Company installed a water purification plant manufactured in Israel at a cost of approximately US$200,000 to double the drinking water supply capacity to the local communities. It was operational in May 2021.

As of the date of this document, the ability of the Company to operate has not been materially affected by the on-going Covid-19 pandemic. The situation is kept under close review by management and the Board; certain measures have and will be taken as appropriate to ensure the health and safety of employees and contractors in this regard and to reduce the potential spread of the virus within the local community.

In June 2022 the Company announced it had raised £3.25 million by way of a private placement of new ordinary shares. (See RNSfor details).

Turning to the financial results for the six months to end-June 2022, the Group’s total comprehensive profit/(loss) for the period was £1,898,315 (six months to end-June 2021: £(1,638,488). The Company raised a total of £3.25 million through share issuances. The net cash balance of the Group at end-June 2022 was £2,453,607

To conclude, Condor made significant advances during the 6 month period de-risking the fully permitted La India Project to a near construction ready status and completing all technical studies for a Feasibility Study. 99.6% of the land for the key areas has been purchased and 14 hectares of land have been cleared in the location of the processing plant facility. Drill results from infill drilling on Mestiza open pit of 6.3 m true width at 6.84 g/t gold from 31.45 m and 3.6 m true width at 29.1 g/t gold are both reassuring of the high grade nature of the deposit and continuity of grade. The wide zones of mineralisation within the La India open pit, near surface of 34.1 m true width at 2.56 g/t gold amalgamated from 2.80 m drill depth are confirmatory in nature. The Company is on track with its strategic objective of constructing and operating a processing plant producing circa 100,000 oz gold per annum, then materially expanding the production capacity while demonstrating a 5M oz Gold District.

Mark Child
Chairman and CEO

CONDOR GOLD PLC

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE AND SIX MONTHS TO 30 JUNE 2022

			Six months to 30.06.22 unaudited £			Six months to 30.06.21 unaudited £			Three months to 30.06.22 unaudited £			Three months to 30.06.21 unaudited £
Revenue			-			-			-			-
Share based payments			(288,906	)		(199,591	)		(126,747	)		(111,320	)
Administrative expenses			(1,085,069	)		(814,269	)		(579,094	)		(390,022	)
Operating loss			(1,373,975	)		(1,013,860	)		(705,841	)		(501,342	)
Finance income			1,585			-			1,330			-
Loss before income tax			(1,372,390	)		(1,013,860	)		(704,511	)		(501,342	)
Income tax expense			-			-			-			-
Loss for the period			(1,372,390	)		(1,013,860	)		(704,511	)		(501,342	)
Other comprehensive income/(loss):
Currency translation differences			3,270,705			(624,628	)		2,605,881			(202,236	)
Other comprehensive income/(loss) for the period			3,270,705			(624,628	)		2,605,881			(202,236	)
Total comprehensive income/(loss) for the period			1,898,315			(1,638,488	)		1,901,370			(703,578	)
Earnings per share expressed in pence per share:
Basic and diluted (in pence)	Note 7		(0.92	)		(0.78	)		(0.48	)		(0.37	)

CONDOR GOLD PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022

	30.06.22 unaudited £			31.12.21 audited £			30.06.21 unaudited £
ASSETS:
NON-CURRENT ASSETS
Property, plant and equipment	7,818,025			7,473,433			7,495,031
Intangible assets	32,752,758			28,100,980			24,096,294
	40,570,783			35,574,413			31,591,325
CURRENT ASSETS
Trade and other receivables	862,775			775,693			196,347
Cash and cash equivalents	2,453,607			2,072,046			3,005,389
	3,316,382			2,847,739			3,201,736
TOTAL ASSETS	43,887,165			38,422,152			34,793,061
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables	221,966			248,176			134,519
TOTAL LIABILITIES	221,966			248,176			134,519
NET CURRENT ASSETS	3,094,416			2,599,563			3,067,217
NET ASSETS	43,665,199			38,173,976			34,658,542
SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT
Called up share capital	31,707,573			29,326,143			26,983,286
Share premium	43,451,199			42,528,627			40,858,206
Exchange difference reserve	788,667			(2,482,038	)		(2,986,729	)
Retained earnings	(32,282,240	)		(31,198,756	)		(30,196,221	)
TOTAL EQUITY	43,665,199			38,173,976			38,658,542

CONDOR GOLD PLC

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 30 JUNE 2022

	Share capital	Share premium		Exchange difference reserve		Retained earnings		Total equity
	£	£		£		£		£
At 1 January 2021	23,732,526	37,175,626		(2,362,101	)	(29,381,952	)	29,164,099
Loss for the period	-	-		-		(1,013,860	)	(1,013,860	)
Other comprehensive income:	-	-		-		-		-
Currency translation differences	-	-		(624,628	)	-		(624,628	)
Total comprehensive income	-	-		(624,628	)	(1,013,860	)	(1,638,488	)
New shares issued	3,250,760	3,682,580		-		-		6,933,340
Issue costs	-	-		-		-		-
Share based payment	-	-		-		199,591		199,591
Total contributions by & distributions to owners of the parent, recognised directly in equity	3,250,760	3,682,580		-		199,591		7,132,931
At 30 June 2021	26,983,286	40,858,206		(2,986,729	)	(30,196,221	)	34,658,542

At 1 January 2022	29,326,143	42,528,627	(2,482,038	)	(31,199,756	)	38,173,976
Loss for the period	-	-	-		(1,372,390	)	(1,372,390	)
Other comprehensive income:	-	-	-		-		-
Currency translation differences	-	-	3,270,705		-		3,270,705
Total comprehensive income	-	-	3,270,705		(1,372,390	)	1,898,315
New shares issued	2,381,430	922,572	-		-		3,304,002
Issue costs	-	-	-		-		-
Share based payment	-	-	-		288,906		288,906
Total contributions by & distributions to owners of the parent, recognised directly in equity	2,381,430	922,572	-		288,906		3,592,908
At 30 June 2022	31,707,573	43,451,199	788,607		(32,282,240	)	43,665,199

CONDOR GOLD PLC

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS TO 30 JUNE 2022

	Six months to 30.06.22 unaudited £			Six months to 30.06.21 unaudited £
Loss before tax	(1,372,390	)		(1,013,860	)
Share based payment	288,906			199,591
Depreciation charges	34,301			-
Finance income	(1,585	)		-
	(1,050,768	)		(814,269	)
Increase in trade and other receivables	(87,082	)		(81,938	)
(Decrease)/increase in trade and other payables	(26,210	)		(131,893	)
Net cash used in operating activities	(1,164,060	)		(1,028,100	)
Cash flows from investing activities
Purchase of intangible fixed assets	(1,805,216	)		(2,662,661	)
Purchase of tangible fixed assets	(62,363	)		(4,494,661	)
Interest received	1,585			-
Net cash used in investing activities	(1,865,994	)		(7,157,586	)
Cash flows from financing activities
Net proceeds from share issue	3,304,002			6,933,340
Net cash generated from financing activities	3,304,002			6,933,340
Increase/(decrease) in cash and cash equivalents	273,948			(1,252,346	)
Cash and cash equivalents at beginning of period	2,072,046			4,159,391
Exchange gains on cash and bank	107,613			98,344
Cash and cash equivalents at end of period	2,453,607			3,005,389

CONDOR GOLD PLC

NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS TO 30 JUNE 2022

1.   COMPLIANCE WITH ACCOUNTING STANDARDS

Basis of preparation
This condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union and also as issued by the International Accounting Standards Board (“IASB”). It has been prepared using accounting policies consistent with International Financial Reporting Standards (“IFRS”) and should be read in conjunction with the annual financial statements for the year ended 31 December 2021 which have been prepared in accordance with IFRS as adopted by the EU and as issued by the IASB.

The interim results for the three and six months to 30 June 2022 are unaudited and the accounts in this interim report do not therefore constitute statutory accounts in accordance with Section 434 of the Companies Act 2006.

Statutory accounts for the year ended 31 December 2021 have been filed with the Registrar of Companies and the auditor's report was unqualified and did not contain any statement under Section 498(2) or 498(3) of the Companies Act 2006. The statutory accounts contained a material uncertainty in respect of going concern which referred to the Group’s need to raise further funding in order to progress exploration activity. There were no other matters drawn to the attention of the users of the financial statements in the auditor’s report.

The interim financial information for the three and six months ended 30 June 2022 was approved by the Board on 15 August 2021.

The directors do not propose an interim dividend.

While it is noted that the Company will require further finance within 12 months of the date of release of these financial statements, the Directors consider the going concern basis to be appropriate based on cash flow forecasts and projections and current levels of commitments, cash and cash equivalents, together with the ability of the Company to raise finance in May 2022. The comparative period presented is that of the six months ended 30 June 2021.

The Directors are of the opinion that due to the nature of the Group’s activities and the events during that period these are the most appropriate comparatives for the current period. Copies of these financial statements are available on the Company’s website and on www.Sedar.com.

2.   ACCOUNTING POLICIES

The interim financial information for the three and six months ended 30 June 2022 has been prepared on the basis of the accounting policies set out in the most recently published financial statements for the Group for the year ended 31 December 2021, which are available on the Company’s website www.condorgold.com and on SEDAR at www.sedar.com, as the Company does not anticipate the addition of new standards to the Group’s results for the year ended 31 December 2021 would materially impact the results.

3.   REVENUE AND SEGMENTAL REPORTING

The Group has not generated any revenue during the period. The Group’s operations are located in the United Kingdom and Nicaragua.

The following is an analysis of the carrying amount of segment assets, and additions to plant and equipment, analysed by geographical area in which the assets are located.

3.   REVENUE AND SEGMENTAL REPORTING - continued

The Group’s results by reportable segment for the six-month period ended 30 June 2022 are as follows:

	UK Six months to 30.06.2022 £			Nicaragua Six months to 30.06.2022 £			Consolidation Six months to 30.06.2022 £
RESULTS
Operating loss	(1,288,746	)		(85,229	)		(1,373,975	)
Finance income	1,585			-			1,585
Income tax	-			-			-
Loss for period	(1,287,161	)		(85,229	)		(1,372,390	)

The Group’s results by reportable segment for the three-month period ended 30 June 2022 are as follows:

	UK Three months to 30.06.2022 £			Nicaragua Three months to 30.06.2022 £			Consolidation Three months to 30.06.2022 £
RESULTS
Operating loss	(646,250	)		(59,591	)		(705,841	)
Interest income	1,330			-			1,330
Income tax	-			-			-
Loss for period	(644,920	)		(59,591	)		(704,511	)

Assets

All transactions between each reportable segment are accounted for using the same accounting policies as the Group uses.

	UK 30.06.2022 £		Nicaragua 30.06.2022 £		Consolidation 30.06.2022 £
ASSETS
Total assets	7,531,696		37,025,917		44,557,613

	UK 30.06.2022 £		Nicaragua 30.06.2022 £		Consolidation 30.06.2022 £
LIABILITIES
Total liabilities	(343,663)		121,697		(221,966)

3.   REVENUE AND SEGMENTAL REPORTING - continued

The Group’s results by reportable segment for the six-month period ended 30 June 2021 are as follows:

	UK Six months to 30.06.2021 £			Nicaragua Six months to 30.06.2021 £			Consolidation Six months to 30.06.2021 £
RESULTS
Operating loss	(907,876	)		(105,984	)		(1,013,860	)
Finance income	-			-			-
Income tax	-			-			-
Loss for period	(907,876	)		(105,984	)		(1,013,860	)

The Group’s results by reportable segment for the three-month period ended 30 June 2021 are as follows:

	UK Three months to 30.06.2021 £			Nicaragua Three months to 30.06.2021 £			Consolidation Three months to 30.06.2021 £
RESULTS
Operating loss	(461,202	)		(40,140	)		(501,342	)
Interest income	-			-			-
Income tax	-			-			-
Loss for period	(461,202	)		(40,140	)		(510,342	)

Assets and liabilities

All transactions between each reportable segment are accounted for using the same accounting policies as the Group uses.

	UK 30.06.2021 £		Nicaragua 30.06.2021 £		Consolidation 30.06.2021 £
ASSETS
Total assets	7,969,350		26,689,192		34,658,542

	UK 30.06.2021 £			Nicaragua 30.06.2021 £			Consolidation 30.06.2021 £
LIABILITIES
Total liabilities	(94,896	)		(233,404	)		(328,300	)

4.   TAXATION

There is no current tax charge/(credit) for the period. The condensed financial statements do not include a deferred tax asset in respect of unused tax losses as the Directors are unable to assess that there will be probable future taxable profits available against which the unused tax losses can be utilised.

5.   INTANGIBLE FIXED ASSETS

During the six months ended 30 June 2022, the Group acquired assets with a cost of £1,805,216 (six months ended 30 June 2021: £2,662,661).

During the three months ended 30 June 2022, the Group acquired assets with a cost of £798,268 (three months ended 30 June 2021: £1,729,641).

6.   EQUITY-SETTLED SHARE OPTION SCHEME AND WARRANTS

The estimated fair value of the options and warrants granted and charged to profit or loss in the period was;

	Six months to 30.06.2022 unaudited £		Six months to 30.06.2021 unaudited £		Three Months to 30.06.2022 unaudited £		Three Months to 30.06.2021 unaudited £
Share options charge	288,906		199,591		126,747		111,320

The fair value of options has been recognised within profit or loss, on a pro-rata basis over the vesting period. This fair value has been calculated using the Black-Scholes option pricing model. The latest inputs into the model were as follows:

	2022		2021
Share price	25.5		48p
Exercise price	33p		48p
Expected volatility	35.6%		35.6%
Expected life (yrs.)	5		5
Risk free rate	0.5%		0.5%
Expected dividend yield	-		-

7.   EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

A reconciliation is set out below:

	Six months to 30.06.22			Six months to 30.06.21
Basic EPS
Loss for the period	(1,372,390	)		(1,013,860		)
Weighted average number of shares	147,667,937			129,714,411
Earnings per share (in pence)	(0.92	)		(0.78		)
	Three months to 30.06.22			Three months to 30.06.21
Basic EPS
Loss for the period	(704,511	)		(501,342		)
Weighted average number of shares	147,757,526			134,825,204
Earnings per share (in pence)	(0.48	)		(0.37		)
In accordance with IAS 33, as the Group has reported a loss for the period, diluted earnings per share are not included.
8.   CALLED-UP SHARE CAPITAL
	30.06.22 £			30.06.21 £
Allotted and fully paid
158,916,429 Ordinary shares of 20p each (30 June 2021: 134,916,429 ordinary shares of 20p each)	31,707,573			26,983,286

Share issuances in the six months ended 30 June 2021 were as follows:

Nature of issuance	Issue price per Ordinary share	Date of share issuance	Number of shares issued	Total Cumulative number of ordinary shares issued
Opening		1 January 2022		146,630,715
Option exercise	20 pence	13 January 2022	300,000	146,930,715
Private placement	28 pence	17 June 2022	11,607,149	158,537,864

On 1 January 2022, 300,000 ordinary shares were issued at a price of 20 pence per share, further to exercise of employee share options. On 17 June 2022, 11,607,149 ordinary shares were issued at a price of 28 pence further to a private placement. On 18 July 2022, 91,666 ordinary shares were issued at a price of 25 pence per share further to an exercise of warrants.

9.   RELATED PARTY TRANSACTIONS

During the half year the Company received consultancy advice from the following related parties:

Company	Related party	Six months to 30.06.2022 £	Six months to 30.06.2021 £	Three months to 30.06.2022 £	Three months to 30.06.2021 £
Axial Associates Limited	Mark Child	-	-	-	-
Burnbrae Limited	Jim Mellon	12,500	12,500	6,250	6,250
Promaco Limited AMC Geological Advisory	Ian Stalker Andrew Cheatle	20,400 4,167	23,156 -	8,700 4,167	25,500 -

10.   SEASONALITY OF THE GROUPS OPERATIONS

There are no seasonal factors which affect the trade of any company in the Group.

For further information please visit www.condorgold.com or contact:

Condor Gold plc	Mark Child, Chairman and CEO +44 (0) 20 7493 2784
Beaumont Cornish Limited	Roland Cornish and James Biddle +44 (0) 20 7628 3396
SP Angel Corporate Finance LLP H&P Advisory Limited	Ewan Leggat +44 (0) 20 3470 0470 Andrew Chubb and Nelish Patel +44 (0) 20 7907 8500
BlytheRay	Tim Blythe and Megan Ray +44 (0) 20 7138 3204

About Condor Gold plc:

Condor Gold plc was admitted to AIM in May 2006 and dual listed on the TSX in January 2018. The Company is a gold exploration and development company with a focus on Nicaragua.

On 25 October 2021 Condor announced the filing of a Preliminary Economic Assessment Technical Report (“PEA”) for its La India Project, Nicaragua on SEDAR https://www.sedar.com. The highlight of the technical study is a post-tax, post upfront capital expenditure NPV of US$418 million, with an IRR of 54% and 12 month pay-back period, assuming a US$1,700 per oz gold price, with average annual production of 150,000 oz gold per annum for the initial 9 years of gold production. The open pit mine schedules have been optimised from designed pits, bringing higher grade gold forward resulting in average annual production of 157,000 oz gold in the first 2 years from open pit material and underground mining funded out of cashflow.

In August 2018, the Company announced that the Ministry of the Environment in Nicaragua had granted the Environmental Permit (“EP”) for the development, construction and operation of a processing plant with capacity to process up to 2,800 tonnes per day at its wholly-owned La India gold Project (“La India Project”). The EP is considered the master permit for mining operations in Nicaragua. Condor has purchased a new SAG Mill, which has mainly arrived in Nicaragua. Site clearance and preparation is at an advanced stage.

Environmental Permits were granted in April and May 2020 for the Mestiza and America open pits respectively, both located close to La India. The Mestiza open pit hosts 92 Kt at a grade of 12.1 g/t gold (36,000 oz contained gold) in the Indicated Mineral Resource category and 341 Kt at a grade of 7.7 g/t gold (85,000 oz contained gold) in the Inferred Mineral Resource category. The America open pit hosts 114 Kt at a grade of 8.1 g/t gold (30,000 oz) in the Indicated Mineral Resource category and 677 Kt at a grade of 3.1 g/t gold (67,000 oz) in the Inferred Mineral Resource category. Following the permitting of the Mestiza and America open pits, together with the La India Open Pit Condor has 1.12 M oz gold open pit Mineral Resources permitted for extraction.

Disclaimer

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

Qualified Persons

The technical and scientific information in this press release has been reviewed, verified and approved by Andrew Cheatle, P.Geo., who is a “qualified person” as defined by NI 43-101 and Gerald D. Crawford, P.E., who is a “qualified person” as defined by NI 43-101 and is the Chief Technical Officer of Condor Gold plc.

Technical Information

Certain disclosure contained in this news release of a scientific or technical nature has been summarised or extracted from the technical report entitled “Technical Report on the La India Gold Project, Nicaragua, October 2021”, dated October 22, 2021 with an effective date of September 9, 2021 (the “Technical Report”), prepared in accordance with NI 43-101. The Qualified Persons responsible for the Technical Report are Dr Tim Lucks of SRK Consulting (UK) Limited, and Mr Fernando Rodrigues, Mr Stephen Taylor and Mr Ben Parsons of SRK Consulting (U.S.) Inc. Mr Parsons assumes responsibility for the MRE, Mr Rodrigues the open pit mining aspects, Mr Taylor the underground mining aspects and Dr Lucks for the oversight of the remaining technical disciplines and compilation of the report.

Reference is made to the Company’s press release dated 23 May 2022, which contains the required National Instrument – 43-101 – Standards of Disclosure for Mineral Projects disclosure with respect to the New Drill Intercepts.

Forward Looking Statements

All statements in this press release, other than statements of historical fact, are ‘forward-looking information’ with respect to the Company within the meaning of applicable securities laws, including statements with respect to: Development Plans for the La India Project, Mineral Reserves and Resources at La India Project. Forward-looking information is often, but not always, identified by the use of words such as: "seek", "anticipate", "plan", "continue", “strategies”, “estimate”, "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", “could”, “might”, “will” and similar expressions. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions regarding: future commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; future currency exchange and interest rates; the impact of increasing competition; general conditions in economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; the receipt of required permits; royalty rates; future tax rates; future operating costs; availability of future sources of funding; ability to obtain financing and assumptions underlying estimates related to adjusted funds from operations. Many assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct.

Such forward-looking information involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to: mineral exploration, development and operating risks; estimation of mineralisation, resources and reserves; environmental, health and safety regulations of the resource industry; competitive conditions; operational risks; liquidity and financing risks; funding risk; exploration costs; uninsurable risks; conflicts of interest; risks of operating in Nicaragua; government policy changes; ownership risks; permitting and licencing risks; artisanal miners and community relations; difficulty in enforcement of judgments; market conditions; stress in the global economy; current global financial condition; exchange rate and currency risks; commodity prices; reliance on key personnel; dilution risk; payment of dividends; as well as those factors discussed under the heading “Risk Factors” in the Company’s annual information form for the fiscal year ended December 31, 2020 dated March 31, 2021, available under the Company’s SEDAR profile at www.sedar.com.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.