Half Yearly Report

 

TIDMPNG 
 
RNS Number : 4271Z 
Persian Gold PLC 
22 September 2009 
 

22nd September 2009 
 
 
Persian Gold plc 
 
 
Interim Results for the Six Month Period to 30th June 2009 
 
 
Key Points: 
 
 
  *  To date good exploration success has been achieved by Persian Gold in Iran: - 
  the Chah-e-Zard gold discovery is believed to be commercial - Dalli could 
  potentially be a small copper/gold mine 
  *  Further progress and development has been frustrated by inaction on behalf of 
  the authorities 
  *  Persian Gold is looking to examine other opportunities and strategic directions 
 
 
 
John Teeling Chairman of Persian Gold Commented: 
 
 
"The geology of Iran remains very attractive. Accessing the opportunity in Iran 
was the strategy behind setting up Persian Gold. Despite some considerable 
success on the ground, we have found it difficult to progress projects due to 
bureaucratic delays. 
 
 
Persian Gold is committed to Iran. We are examining other opportunities 
available to best serve the Company and shareholders, while continuing to 
address the problems of operating in Iran". 
 
 
Iran is a beautiful country with outstanding geological potential. The logic in 
establishing Persian Gold in 2004 was to take advantage of the opportunities. 
The geopolitical situation facing Iran - sanctions, Middle East politics, and 
lack of understanding - meant that few, if any, Western mining companies would 
venture into the country. The founders of Persian Gold, Irish and Iranian, were 
experienced international operators and had no political baggage. This gave us a 
major early-move advantage. 
 
 
The strategy worked very well in the early years. Persian Gold got every help 
from the Iranian Embassy in Dublin and from the geological and mining 
organisations in Iran. Persian Gold established a top class technical team in 
Iran. We had two quick discoveries, both joint ventures with local Iranians; 
Chah-e-Zard, a gold oxide resource, and Dalli, a copper / gold porphyry. Grass 
roots gold exploration at Takestan obtained good first phase exploration results 
and then ran into opposition when we wanted to move to the trenching / drilling 
phase. 
 
 
But, our experience in the past eighteen months has been frustrating. A detailed 
application to the Ministry of Mines for a Discovery Certificate on the 
Chah-e-Zard gold / silver discovery has lain dormant, although it has passed 
through various committees for technical and economic review. No explanation has 
come from the authorities. Under the relevant Mining Law, the authorities must 
rule on our application. Persian Gold staff have completed the necessary 
technical work prior to lodging a Discovery Certificate application for the 
Dalli copper / gold resource, but under the current circumstances, there is 
little point in submitting the application. Compounding the problem is the fact 
that visas are no longer available from the Iranian Embassy in Dublin. Again, no 
explanations are forthcoming. 
 
 
Let me remind you of our logic in selecting Iran. The country is very big, 
stretching over 2,000 kilometres. It is seriously underexplored but thought to 
contain significant percentages of the world's gold, copper, zinc and other 
metals. By bringing new thinking and new technology to the country, and by 
recruiting top quality internal staff, we hoped to make discoveries. In looking 
for gold, we applied the knowledge gained from discovering and developing gold 
mines in clay / alunite / silica minerals in the Andes. We employed satellite 
imagery in seeking exploration sites and used new interpretation techniques to 
evaluate findings. It worked. Our experience of gold mining in Africa enabled us 
to model and evaluate the Chah-e-Zard deposit, where we drilled over 40 holes to 
outline an oxide resource of at least 160,000 ounces of gold and 1 million 
ounces of silver. We know how to build and operate tank leach gold mines. We 
believe Chah-e-Zard is commercial. 
 
 
Our initial focus was on early stage gold exploration but we soon realised that 
Iran could and should contain very large copper gold porphyry deposits. Our 
first target was Dalli. This is a good and valuable deposit, but it is not the 
goal, it is not big enough. We looked at others, including Shadan in the East, 
but we have not found a big resource. Applying state of the art analytical / 
evaluation techniques added value to both resources. Dalli could be viable as a 
small gold / copper mine. 
 
 
We had excellent cooperation in Iran at local and national level. Individuals, 
state organisations, and even a bank, brought particular projects. We signed 
Memoranda of Understanding with a bank, a state mining company and with some 
local mining groups. 
 
 
For the past eighteen months, we persevered in our chosen strategy in Iran, 
though unable to make any progress with the authorities. We kept our top quality 
geological team together, we continued to examine new projects, and we pushed 
for answers to our application. It is unsatisfactory to report that we have made 
no progress and have received no explanations. 
 
 
 
 
The Way Forward 
 
 
Facing reality, your board have taken the following steps: 
 
 
+----------+----------+----------+----------+----------------+ 
|          |          |          | 1.       | Continue       | 
|          |          |          |          | to             | 
|          |          |          |          | monitor        | 
|          |          |          |          | opportunities  | 
|          |          |          |          | in Iran;       | 
+----------+----------+----------+----------+----------------+ 
|          |          |          | 2.       | Cut            | 
|          |          |          |          | costs as       | 
|          |          |          |          | far as         | 
|          |          |          |          | possible.      | 
|          |          |          |          | Unfortunately, | 
|          |          |          |          | some staff     | 
|          |          |          |          | have lost      | 
|          |          |          |          | their jobs,    | 
|          |          |          |          | while our two  | 
|          |          |          |          | top managers   | 
|          |          |          |          | have seen      | 
|          |          |          |          | their          | 
|          |          |          |          | remuneration   | 
|          |          |          |          | cut;           | 
+----------+----------+----------+----------+----------------+ 
|          |          |          | 3.       | In             | 
|          |          |          |          | recent         | 
|          |          |          |          | months,        | 
|          |          |          |          | we have        | 
|          |          |          |          | conducted      | 
|          |          |          |          | preliminary    | 
|          |          |          |          | investigations | 
|          |          |          |          | into the       | 
|          |          |          |          | mineral        | 
|          |          |          |          | potential in   | 
|          |          |          |          | Armenia,       | 
|          |          |          |          | Azerbaijan,    | 
|          |          |          |          | Kazakhstan and | 
|          |          |          |          | Tajikistan. We | 
|          |          |          |          | are now        | 
|          |          |          |          | focusing on    | 
|          |          |          |          | grass roots    | 
|          |          |          |          | gold           | 
|          |          |          |          | opportunities. | 
|          |          |          |          | These          | 
|          |          |          |          | countries have | 
|          |          |          |          | large Persian  | 
|          |          |          |          | / Azari-Turkic | 
|          |          |          |          | speaking       | 
|          |          |          |          | populations.   | 
|          |          |          |          | Our Iranian    | 
|          |          |          |          | staff can work | 
|          |          |          |          | in these       | 
|          |          |          |          | places;        | 
+----------+----------+----------+----------+----------------+ 
|          |          |          | 4.       | We have        | 
|          |          |          |          | identified     | 
|          |          |          |          | two            | 
|          |          |          |          | specific       | 
|          |          |          |          | minerals       | 
|          |          |          |          | which we       | 
|          |          |          |          | believe        | 
|          |          |          |          | have           | 
|          |          |          |          | strong         | 
|          |          |          |          | long term      | 
|          |          |          |          | fundamentals.  | 
|          |          |          |          | The board is   | 
|          |          |          |          | examining      | 
|          |          |          |          | exploration    | 
|          |          |          |          | opportunities  | 
|          |          |          |          | in these       | 
|          |          |          |          | minerals.      | 
|          |          |          |          | Early          | 
|          |          |          |          | developments   | 
|          |          |          |          | are expected;  | 
+----------+----------+----------+----------+----------------+ 
|          |          |          | 5.       | The            | 
|          |          |          |          | skills,        | 
|          |          |          |          | expertise      | 
|          |          |          |          | and            | 
|          |          |          |          | contacts       | 
|          |          |          |          | of             | 
|          |          |          |          | directors      | 
|          |          |          |          | and staff      | 
|          |          |          |          | extend         | 
|          |          |          |          | into           | 
|          |          |          |          | hydrocarbons.  | 
|          |          |          |          | For some       | 
|          |          |          |          | time, we have  | 
|          |          |          |          | been looking   | 
|          |          |          |          | at             | 
|          |          |          |          | opportunities  | 
|          |          |          |          | to partner     | 
|          |          |          |          | with local     | 
|          |          |          |          | Iranian        | 
|          |          |          |          | groups who     | 
|          |          |          |          | have obtained  | 
|          |          |          |          | exploration    | 
|          |          |          |          | concessions.   | 
|          |          |          |          | Iranian oil    | 
|          |          |          |          | operates on a  | 
|          |          |          |          | different      | 
|          |          |          |          | regime to      | 
|          |          |          |          | minerals so    | 
|          |          |          |          | foreign        | 
|          |          |          |          | investment is  | 
|          |          |          |          | taking place.  | 
|          |          |          |          | To date, the   | 
|          |          |          |          | returns        | 
|          |          |          |          | offered make   | 
|          |          |          |          | financing      | 
|          |          |          |          | difficult.     | 
+----------+----------+----------+----------+----------------+ 
 
 
Outside of Iran, we have been offered and are examining exploration projects in 
both gas and oil. If we remain stalled in Iranian minerals, then such projects 
provide alternatives. 
 
 
 
 
 
 
The geology of Iran remains as attractive as ever. We are striving to find out 
why Persian Gold is not making progress with the authorities. If we can identify 
the problems, we will fix them. In the interim, we must ensure that shareholders 
have opportunities. This will lead to a redirection of activities, at least in 
the short term. 
 
 
 
 
John Teeling 
Chairman 
 
 
22nd September 2009 
 
 
 
 
 
 
+--+--------------------------------+----------------------------------+ 
| Persian Gold PLC                  |                                  | 
+-----------------------------------+----------------------------------+ 
|  | John Teeling, Chairman         | [phone]              | 
|  |                                |                                  | 
+--+--------------------------------+----------------------------------+ 
| FinnCap                           |                                  | 
+-----------------------------------+----------------------------------+ 
|  | Matthew Robinson               | [phone]             | 
+--+--------------------------------+----------------------------------+ 
| College Hill                      |                                  | 
+-----------------------------------+----------------------------------+ 
|  | Nick Elwes                     | [phone]             | 
+--+--------------------------------+----------------------------------+ 
|  |                                |                                  | 
+--+--------------------------------+----------------------------------+ 
 
 
www.persiangoldplc.com 
 
 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                                        Persian Gold plc                                          | 
+--------------------------------------------------------------------------------------------------+ 
|                                Financial Information (Unaudited)                                 | 
+--------------------------------------------------------------------------------------------------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| CONDENSED CONSOLIDATED INCOME STATEMENT              |  |           |  |           |  |          | 
+------------------------------------------------------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |    Six Months Ended      |  | Year     | 
|                               |         |  |         |  |                          |  | Ended    | 
+-------------------------------+---------+--+---------+--+--------------------------+--+----------+ 
|                               |         |  |         |  |  30 June  |  |    30     |  |  31 Dec  | 
|                               |         |  |         |  |    09     |  |  June08   |  |    08    | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |unaudited  |  |unaudited  |  | audited  | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |  GBP'000  |  |  GBP'000  |  | GBP'000  | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Revenue                       |         |  |         |  |        0  |  |        0  |  |       0  | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Operating costs               |         |  |         |  |     (160) |  |     (191) |  |    (316) | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| OPERATING LOSS                |         |  |         |  |     (160) |  |     (191) |  |    (316) | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Finance income                |         |  |         |  |        0  |  |        4  |  |       8  | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Finance costs                 |         |  |         |  |       (1) |  |       (1) |  |      (2) | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| LOSS BEFORE TAXATION          |         |  |         |  |     (161) |  |     (188) |  |    (310) | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Income tax expense            |         |  |         |  |        0  |  |        0  |  |       0  | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| LOSS AFTER TAXATION           |         |  |         |  |     (161) |  |     (188) |  |    (310) | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| LOSS PER SHARE - Basic and diluted      |  |         |  |    (.22p) |  |    (.30p) |  |   (.48p) | 
+-----------------------------------------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| CONDENSED CONSOLIDATED BALANCE SHEET                 |  |           |  |           |  |          | 
+------------------------------------------------------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |  30 June  |  |    30     |  |  31 Dec  | 
|                               |         |  |         |  |    09     |  |  June08   |  |    08    | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |unaudited  |  |unaudited  |  | audited  | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |  GBP'000  |  |  GBP'000  |  | GBP'000  | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| NON-CURRENT ASSETS            |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Intangible assets             |         |  |         |  |     1,893 |  |     1,474 |  |    1,831 | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| CURRENT ASSETS                |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Other receivables             |         |  |         |  |        10 |  |        12 |  |       13 | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Cash and cash equivalents     |         |  |         |  |        80 |  |       278 |  |      194 | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |        90 |  |       290 |  |      207 | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| TOTAL ASSETS                  |         |  |         |  |     1,983 |  |     1,764 |  |    2,038 | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| LIABILITIES                   |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| CURRENT LIABILITIES           |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Trade and other payables      |         |  |         |  |     (276) |  |     (228) |  |    (170) | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| NON-CURRENT LIABILITIES       |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Provisions                    |         |  |         |  |      (10) |  |      (10) |  |     (10) | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| TOTAL LIABILITIES             |         |  |         |  |     (286) |  |     (238) |  |    (180) | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| NET ASSETS                    |         |  |         |  |     1,697 |  |     1,526 |  |    1,858 | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| EQUITY                        |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Share Capital                 |         |  |         |  |     2,841 |  |     2,472 |  |    2,841 | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Reserves                      |         |  |         |  |    (1144) |  |     (946) |  |    (983) | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| TOTAL EQUITY                  |         |  |         |  |     1,697 |  |     1,526 |  |    1,858 | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY               |  |           |  |          | 
+---------------------------------------------------------------------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |                   Six Months Ended 30 June 09                    | 
+-------------------------------+------------------------------------------------------------------+ 
|                               |         |  |         |  |  Share    |  |           |  |          | 
|                               |         |  |         |  |  based    |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |  Share  |  |  Share  |  | Payments  |  | Retained  |  |  Total   | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |Capital  |  |Premium  |  |  Reserve  |  |  Losses   |  |  Equity  | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |GBP'000  |  |GBP'000  |  |  GBP'000  |  |  GBP'000  |  | GBP'000  | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| As at 1 January 2008          |     158 |  |   2,314 |  |       130 |  |     (888) |  |    1,714 | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Loss for the period           |         |  |         |  |           |  |     (188) |  |    (188) | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| As at 30 June 2008            |     158 |  |   2,314 |  |       130 |  |   (1,076) |  |    1,526 | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Share option costs recognised in        |  |         |  |        85 |  |           |  |       85 | 
| reserves                                |  |         |  |           |  |           |  |          | 
+-----------------------------------------+--+---------+--+-----------+--+-----------+--+----------+ 
| Shares issued                 |      28 |  |     422 |  |           |  |           |  |      450 | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Share issue expenses          |         |  |    (81) |  |           |  |           |  |     (81) | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Loss for the period           |         |  |         |  |           |  |     (122) |  |    (122) | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| As at 31 December 2008        |     186 |  |   2,655 |  |       215 |  |   (1,198) |  |    1,858 | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Loss for the period           |         |  |         |  |           |  |     (161) |  |    (161) | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| As at 30 June 2009            |     186 |  |   2,655 |  |       215 |  |   (1,359) |  |    1,697 | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| CONDENSED CONSOLIDATED CASH FLOW STATEMENT           |  |           |  |           |  |          | 
+------------------------------------------------------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |    Six Months Ended      |  | Year     | 
|                               |         |  |         |  |                          |  | Ended    | 
+-------------------------------+---------+--+---------+--+--------------------------+--+----------+ 
|                               |         |  |         |  |  30 June  |  |    30     |  |  31 Dec  | 
|                               |         |  |         |  |    09     |  |  June08   |  |    08    | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |unaudited  |  |unaudited  |  | audited  | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |  GBP'000  |  |  GBP'000  |  | GBP'000  | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| CASH FLOW FROM OPERATING ACTIVITIES     |  |         |  |           |  |           |  |          | 
+-----------------------------------------+--+---------+--+-----------+--+-----------+--+----------+ 
| Loss for the period           |         |  |         |  |     (161) |  |     (188) |  |    (310) | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Finance costs recognised in   |         |  |         |  |        1  |  |        1  |  |       2  | 
| loss                          |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Finance income recognised in  |         |  |         |  |        0  |  |       (4) |  |      (8) | 
| loss                          |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Exchange movements            |         |  |         |  |        5  |  |       (4) |  |      11  | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Shares issued in lieu of fees |         |  |         |  |        0  |  |        0  |  |     213  | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |     (155) |  |     (195) |  |     (92) | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Movements in working capital  |         |  |         |  |      109  |  |      (36) |  |     (94) | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| CASH USED BY OPERATIONS       |         |  |         |  |      (46) |  |     (231) |  |    (186) | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Finance costs                 |         |  |         |  |       (1) |  |       (1) |  |      (2) | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Finance income                |         |  |         |  |        0  |  |        4  |  |       8  | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| NET CASH USED IN OPERATING ACTIVITIES   |  |         |  |      (47) |  |     (228) |  |    (180) | 
+-----------------------------------------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| INVESTING ACTIVITIES          |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Payments for intangible       |         |  |         |  |      (62) |  |     (191) |  |    (545) | 
| assets                        |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| NET CASH USED IN INVESTING ACTIVITIES   |  |         |  |      (62) |  |     (191) |  |    (545) | 
+-----------------------------------------+--+---------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| FINANCING ACTIVITIES          |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Proceeds from issue of equity |         |  |         |  |        0  |  |        0  |  |     237  | 
| shares                        |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| NET CASH GENERATED FROM FINANCING ACTIVITIES         |  |        0  |  |        0  |  |     237  | 
+------------------------------------------------------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| NET DECREASE IN CASH AND CASH EQUIVALENT             |  |     (109) |  |     (419) |  |    (488) | 
+------------------------------------------------------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Cash and cash equivalent at beginning of the         |  |      194  |  |      693  |  |     693  | 
| period                                               |  |           |  |           |  |          | 
+------------------------------------------------------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
| Effect of exchange rate changes on      |  |         |  |       (5) |  |        4  |  |     (11) | 
| cash held                               |  |         |  |           |  |           |  |          | 
+-----------------------------------------+--+---------+--+-----------+--+-----------+--+----------+ 
| CASH AND CASH EQUIVALENT AT END OF THE PERIOD        |  |       80  |  |      278  |  |     194  | 
+------------------------------------------------------+--+-----------+--+-----------+--+----------+ 
|                               |         |  |         |  |           |  |           |  |          | 
+-------------------------------+---------+--+---------+--+-----------+--+-----------+--+----------+ 
 
 
Notes: 
 
 
1.INFORMATION 
The financial information for the six months ended June 30th, 2009 and the 
comparative amounts for the six months ended June 30th, 2008 are unaudited. The 
financial information above does not constitute full statutory accounts within 
the meaning of section 240 of the Companies Act 1985. 
 
 
The Interim Financial Report has been prepared in accordance with IAS 34 Interim 
Financial Reporting as adopted by the European Union. The accounting policies 
and methods of computation used in the preparation of the Interim Financial 
Report are consistent with those used in the Group 2008 Annual Report, which is 
available at www.persiangoldplc.com 
 
 
The interim financial statements have not been audited or reviewed by the 
auditors of the Group pursuant to the Auditing Practices board guidance on 
Review of Interim Financial Information. 
 
 
 
 
2.No dividend is proposed in respect of the period. 
 
 
 
 
3.LOSS PER SHARE 
+---------------------------------------+------------+------------+------------+ 
|                                       |    30 June |    30 June |     31 Dec | 
|                                       |         09 |         08 |         08 | 
+---------------------------------------+------------+------------+------------+ 
|                                       |    GBP     |    GBP     |    GBP     | 
+---------------------------------------+------------+------------+------------+ 
| Loss per share - Basic and Diluted    |    (0.22p) |    (0.30p) |    (0.48p) | 
+---------------------------------------+------------+------------+------------+ 
|                                       |            |            |            | 
+---------------------------------------+------------+------------+------------+ 
| Basic loss per share                  |            |            |            | 
+---------------------------------------+------------+------------+------------+ 
| The earnings and weighted average     |            |            |            | 
| number of ordinary shares used in the |            |            |            | 
| calculation of basic loss per share   |            |            |            | 
| are as follows:                       |            |            |            | 
|                                       |            |            |            | 
+---------------------------------------+------------+------------+------------+ 
| Loss for the year attributable to     |  (161,024) |  (188,291) |  (310,367) | 
| equity holders of the Parent          |            |            |            | 
+---------------------------------------+------------+------------+------------+ 
|                                       |            |            |            | 
+---------------------------------------+------------+------------+------------+ 
| Weighted average number of ordinary   | 74,662,198 | 63,412,198 | 64,090,280 | 
| shares for the purpose of basic       |            |            |            | 
| earnings per share                    |            |            |            | 
+---------------------------------------+------------+------------+------------+ 
|                                       |            |            |            | 
+---------------------------------------+------------+------------+------------+ 
|                                       |            |            |            | 
+---------------------------------------+------------+------------+------------+ 
 
 
4.INTANGIBLE ASSETS 
+--------------------------------------+-----------+-----------+-----------+ 
|                                      |   30 June |   30 June |    31 Dec | 
|                                      |        09 |        08 |        08 | 
+--------------------------------------+-----------+-----------+-----------+ 
| Exploration and evaluation assets:   |   GBP'000 |   GBP'000 |   GBP'000 | 
+--------------------------------------+-----------+-----------+-----------+ 
| Cost at 1 January                    |     1,831 |     1,283 |     1,283 | 
+--------------------------------------+-----------+-----------+-----------+ 
| Additions                            |        62 |       191 |       548 | 
+--------------------------------------+-----------+-----------+-----------+ 
|                                      | _________ | _________ | _________ | 
+--------------------------------------+-----------+-----------+-----------+ 
| Cost and net book value              |     1,893 |     1,474 |     1,831 | 
+--------------------------------------+-----------+-----------+-----------+ 
|                                      |           |           |           | 
+--------------------------------------+-----------+-----------+-----------+ 
 
 
Exploration and evaluation assets relates to expenditure incurred during 
prospecting, exploring for gold and related expenditure in Iran. 
 
 
The group's activities are subject to a number of significant potential risks 
including: 
 
 
    - price fluctuations 
    - foreign exchange risks 
    - uncertainties over development and operational risks 
    - operations and environmental risks 
    - political and legal risks, including arrangements with governments for 
licenses, profit sharing 
      and taxation. 
    - foreign investment risks including increases in taxes, royalties and 
renegotiation of contracts 
    - liquidity risks 
    - funding risks 
The realisation of this intangible asset is dependent on the successful 
discovery and development of economic mineral reserves which is affected by 
these and other risks. Should this prove unsuccessful the value included in the 
balance sheet would be written off to the income statement. 
 
 
The directors are aware that by its nature there is an inherent uncertainty in 
such development expenditure as to the value of the asset. Having reviewed the 
deferred exploration and evaluation development expenditure at 30 June 2009, the 
directors are satisfied that the value of the intangible asset is not less than 
carrying net book value. 
 
 
 
 
+----------+----------+------------------------+ 
|          | 5.       | The                    | 
|          |          | Interim                | 
|          |          | Report                 | 
|          |          | for the                | 
|          |          | six                    | 
|          |          | months                 | 
|          |          | to June                | 
|          |          | 30th,                  | 
|          |          | 2009 was               | 
|          |          | approved               | 
|          |          | by the                 | 
|          |          | Directors              | 
|          |          | on 22nd                | 
|          |          | September              | 
|          |          | 2009.                  | 
+----------+----------+------------------------+ 
|          |          |                        | 
+----------+----------+------------------------+ 
|          |          |                        | 
+----------+----------+------------------------+ 
|          | 6.       | Copies of              | 
|          |          | this                   | 
|          |          | announcement           | 
|          |          | will be sent           | 
|          |          | to                     | 
|          |          | shareholders           | 
|          |          | and will be            | 
|          |          | available              | 
|          |          | for                    | 
|          |          | inspection             | 
|          |          | at the                 | 
|          |          | Companies              | 
|          |          | Registered             | 
|          |          | Office at              | 
|          |          | 20-22                  | 
|          |          | Bedford Row,           | 
|          |          | London WC1R            | 
|          |          | 4JS. The               | 
|          |          | Interim                | 
|          |          | Report may             | 
|          |          | also be                | 
|          |          | viewed at              | 
|          |          | Persian Gold           | 
|          |          | plc's                  | 
|          |          | website at             | 
|          |          | www.persiangoldplc.com | 
+----------+----------+------------------------+ 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 IR ILFFTAVILFIA