Proposed placing of 41,688,171 new ordinary shares at 6p per share (the "Placing")

�         Following the completion of documentation and the subsequent raising of finance the Persian Gold suspension on AIM has been lifted

�         A fundraising of �2.7m at 6p a share has been finalised

�         Following court and shareholder approvals, Persian Gold will acquire Hydrocarbon Exploration plc ("HyEx") for �4.56m in an all-share deal on the basis of 2,800 new Persian Gold ordinary shares for every one HyEx share. This is expected to be completed in early April

�         The Company proposes to change its name to 'Clontarf Energy'. The enlarged group is expected to have a market cap of approximately �12m

�         Since the Acquisition was announced, HyEx has won two exploration blocks in Peru and there has been a significant gas discovery on HyEx ground in El Dorado, Bolivia

�         Clontarf Energy will be an oil and gas focused venture with operations in Bolivia, Peru and Ghana

�         The existing gold / copper activities in Iran are also being retained

�         Shore Capital appointed as Nomad and Joint Broker to the Company; Optiva Securities to act as Joint Broker to the Company

John Teeling, Chairman, commented:

"Patience is a virtue, which I hope will be rewarded.  The new Persian Gold, when it is renamed Clontarf Energy, will be an aggressive oil and gas explorer in some of the most attractive energy areas in the world.  The revitalised company will have 60% of the Tano 2A block in Ghana, close to the massive Tullow / Kosmos discoveries.  HyEx has recently been awarded two exploration blocks in Peru, 183 and 188, both of which are close to producers. Each block has a history of exploration.  In Bolivia, there has been a further discovery on what will be our 10% owned El Dorado gas discovery.  Production has already begun from existing wells on the licence. 

We are not ignoring the other activities in the portfolio.  We continue to monitor and press our case for discovery certificates in Iran; while in the US negotiations are ongoing to resolve the dispute of certain assets.  Neither of these are material to the future.

Completing legal, financial and technical due diligence in three continents, combined with holiday periods extended the time to completion, but we are there now.  A weighty prospectus will be dispatched to all shareholders and following shareholder and court approvals, the deal will be finalised.

Delay is always frustrating, but the new Peruvian blocks and Bolivian gas discoveries are excellent compensation."

Enquiries: