COG Condor Gold plc

Condor Gold (AIM: CNR; TSX: COG) announces that it has today published its unaudited financial results for the three months ending 31 March 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 on SEDAR at www.sedar.com.

Highlights for the First Quarter of 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.
• Advanced the technical studies needed for the completion of 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.
• Project finance discussions are underway with potential providers of project finance who have access to Condor’s data room under confidentiality agreements.
• Further advanced compliance with the terms of the La India Environmental Permit to construct and operate the mine, including completion of additional technical and engineering studies.

Mark Child, Chairman and CEO Commented:

“During the first quarter, we continued to make significant progress on advancing the Feasibility Study for the La India open pit and associated mine site infrastructure. All technical studies undertaken at the Project level are complete. We are currently reviewing the metallurgical test work, geotechnical analysis and capital cost estimates. Additionally, we received the results from the 8,004 m infill drill program at the fully permitted high-grade Mestiza open pit. Although not included in the scope of our forthcoming Feasibility Study, we expect Mestiza to provide an additional high-grade ore source for the La India mill.

Concurrently, we are finalizing our analysis of an updated Mineral Resource Estimate for La India Project, which is inclusive of a Mineral Reserve Estimate for the La India open pit. The geological model is consistent with our current best understanding. Lithologies, weathering and structures have been re-modelled from scratch with existing drilling, trenching and outcrops considered.

In summary, the La India open pit including the associated mine site infrastructure is essentially construction ready and materially de-risked. The plan is to add the two fully permitted high grade feeder pits of Mestiza and America to the mine plan during the construction phase. The Feasibility Study on La India open pit is almost complete, the formal announcement will probably take us into Q3. It will put the Company in a position to pursue various project financing alternatives, some of which have already been initiated.”

CONDOR GOLD PLC

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFOR THE THREE MONTHS TO 31 MARCH 2022

					Three months to 31 March2022unaudited£			Three months to 31 March2021unaudited£
Revenue					-			-
Administrative expenses					(668,134	)		(512,518	)
Operating gain/(loss)	Note 3				(668,134	)		(512,518	)
Finance income					255			-
Loss before income tax					(667,879	)		(512,518	)
Income tax expense	Note 4				-			-
Gain/(loss) for the period					(667,789	)		(512,518	)
Other comprehensive income/(loss):
Write off of Minority Interest								-
Currency translation differences					664,824			(422,392	)
Other comprehensive income/(loss) for the period					664,824			(422,392	)
Total comprehensive income/(loss) for the period					(3,055	)		(934,910	)
Gain/(loss) per share expressed in pence per share:
Basic and diluted (in pence)	Note 7				(0.46	)		(0.41	)

CONDOR GOLD PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAS AT 31 MARCH 2022

		As at 31March 2022unaudited£			As at 31December 2021audited£			As at 31March 2021unaudited£
ASSETS:
NON-CURRENT ASSETS
Property, plant and equipment		7,579,866			7,473,433			4,081,961
Intangible assets		29,634,986			28,100,980			22,623,998
		37,214,852			35,574,413			26,705,959
CURRENT ASSETS
Trade and other receivables		875,390			775,693			282,202
Cash and cash equivalents		408,028			2,072,046			6,278,947
		1,283,418			2,847,739			4,723,800
TOTAL ASSETS		38,498,270			38,422,152			33,267,108
LIABILITIES:
CURRENT LIABILITIES
Trade and other payables		99,190			248,176			192,525
TOTAL LIABILITIES		99,190			248,176			192,525
NET CURRENT ASSETS		1,184,228			2,599,563			6,368,624
NET ASSETS		38,399,080			38,173,976			33,074,583
SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT
Called up share capital	Note 8	29,386,143			29,326,143			26,964,836
Share premium		42,534,627			42,528,627			38,700,439
Legal reserves		-			-			-
Exchange difference reserve		(1,817,214	)		(2,482,038	)		(2,784,493	)
Retained earnings		(31,704,476	)		(31,198,756	)		(29,806,199	)
TOTAL EQUITY		38,399,080			38,173,976			33,074,583

CONDOR GOLD PLC

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITYAS AT 31 MARCH 2022

	Sharecapital	Sharepremium	Exchangedifferencereserve		Retainedearnings		Total		Total equity
	£	£	£		£		£		£
At 1 January 2021	23,732,526	37,175,626	(2,362,101	)	(29,381,952	)	29,164,099		29,164,099
Comprehensive income:
Gain for the period	-	-	-		(512,518	)	(512,518	)	(512,518		)
Other comprehensive income:
Currency translation differences	-	-	(422,392	)	-		(422,392	)	(422,392		)
Total comprehensive income	-	-	(422,392	)	(512,518	)	(934,910	)	(934,910		)
New shares issued	3,232,310	1,524,813	-		-		4,757,123		4,757,123
Issue costs	-	-	-		-		-		-
Share based payment	-	-	-		88,271		88,271		88,271
At 31 March 2021	26,964,836	38,700,439	(2,784,493	)	(29,806,199	)	33,074,0583		33,074,583
At 1 January 2022	29,326,143	42,528,627	(2,482,038	)	31,198,756		38,173,976		38,173,976
Comprehensive income:
Loss for the period	-	-	-		(667,879	)	(667,879	)	(667,879		)
Other comprehensive income:
Currency translation differences	-	-	664,824		-		664,824		664,824
Total comprehensive income	-	-	664,824		(667,879	)	(3,055	)	(3,055		)
New shares issued	60,000	6,000	-		-		66,000		66,000
Issue costs	-	-	-		-		-		-
Share based payment	-	-	-		162,159
At 31 March 2022	29,386,143	42,534,627	(1,817,214	)	(31,704,476	)	38,399,080		38,399,080

CONDOR GOLD PLC

CONDENSED CONSOLIDATED CASH FLOW STATEMENTAS AT 31 MARCH 2022

			Three monthsto 31.03.22unaudited£			Three monthsto 31.03.21unaudited£
Cash flows from operating activities
Gain/(loss) before tax			(667,879	)		(512,518	)
Share based payment			162,159			88,271
Depreciation charges			-			-
Exchange differences			75,920			23,259
Finance income			(255	)		-
			(430,055	)		(400,988	)
(Increase) in trade and other receivables			(99,697	)		(167,793	)
Increase/(decrease) in trade and other payables			(148,986	)		(73,887	)
Net cash absorbed in operating activities			(678,738	)		(642,668	)
Cash flows from investing activities
Purchase of intangible fixed assets			(1,006,948	)		(1,061,879	)
Purchase of tangible fixed assets			(61,787	)		(933,020	)
Interest received			255			-
Net cash absorbed in investing activities			(1,068,480	)		(1,944,899	)
Cash flows from financing activities
Net proceeds from share issue			66,000			4,757,123
Net cash generated in financing activities			66,000			4,757,123
Increase / (decrease) in cash and cash equivalents			(1,739,939	)		2,119,556
Cash and cash equivalents at beginning of period			2,072,046			4,159,391
Exchange losses on cash and bank			-			-
Cash and cash equivalents at end of period			408,028			6,278,947

CONDOR GOLD PLC

NOTES TO THE CONDENSED FINANCIAL STATEMENTSFOR THE THREE MONTHS TO 31 MARCH 2022

1.  COMPLIANCE WITH ACCOUNTING STANDARDSBasis of preparation

This condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board (IASB). It has been prepared in accordance with International Financial Reporting Standards (IFRS and IFRIC interpretations) (“IFRS”) in force at the reporting date, and their interpretations issued by the IASB as adopted for use within the European Union, and with IFRS and their interpretations as issued by the IASB.

The interim results for the three months to 31 March 2022 are neither audited nor reviewed by our auditors 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 prepared and for which the auditor's report was unqualified, did not contain any statement under Section 498(2) or 498(3) of the Companies Act 2006 and did not contain any matters to which the auditors drew attention without qualifying their report.

The interim financial information for the three months ended 31 March 2022 were approved by the Board on 12 May 2022.

The directors do not propose an interim dividend.

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. The comparative period presented is that of the three months ended 31 March 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 accounting policies used in preparing the interim results are the same as those applied to the latest audited annual financial statements, which are available on www.Sedar.com and on the Company’s website www.condorgold.com. These accounting policies are those expected to be applied in the financial statements for the year ended 31 December 2022.

3.  REVENUE AND SEGMENTAL REPORTING

The Group has not generated any revenue during the period. The Group’s operations are located in England 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.

CONDOR GOLD PLC

NOTES TO THE CONDENSED FINANCIAL STATEMENTSFOR THE THREE MONTHS TO 31 MARCH 2022

The Group’s results by reportable segment for the three month period ended 31 March 2021 are as follows:

	UKThree months to 31 March 2021£				NicaraguaThree months to 31 March 2021£			ConsolidationThree months to 31 March 2021£
RESULTS
Operating (loss)	(446,674	)			(65,844	)		(512,518	)
Interest income	-				-			-

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

	UKAs at 31 March 2021£				NicaraguaAs at 31 March 2021£			ConsolidationAs at 31 March 2021£
ASSETS
Total assets	7,885,554				25,588,654			33,474,208
	UKAs at 31March 2021£				NicaraguaAs at 31 March 2021£			ConsolidationAs at 31 March 2021£
LIABILITIES
Total liabilities	(132,077	)			(60,448	)		(192,525	)

The Group’s results by reportable segment for the three month period ended 31 March 2021 are as follows:

	UKThree months to 31 March 2022£				NicaraguaThree months to 31 March 2022£			ConsolidationThree months to 31 March 2022£
RESULTS
Operating gain/(loss)	(642,496	)			(25,638	)		(668,134	)
Interest	255				-			255

Assets and liabilities

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

	UKAs at 31 March 2022£				NicaraguaAs at 31 March 2022£		ConsolidationAs at 31 March 2022£
ASSETS
Total assets	5,523,889				33,598,210		39,122,099
	UKAs at 31March 2022£				NicaraguaAs at 31 March 2022£		ConsolidationAs at 31 March 2022£
LIABILITIES
Total liabilities	(138,495	)			39,305		(99,190	)

4.  TAXATION

There is no current tax charge for the period. The accounts do not include a deferred tax asset in respect of carry forward 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 three months ended 31 March 2022, the Group acquired intangible assets with a cost of £1,006,948 (three months ended 31 March 2021: £ 1,061,879).

6.  EQUITY-SETTLED SHARE OPTION SCHEME AND WARRANTS

The estimated fair value of the options and warrants granted was;

			Three months to31 March 2022unaudited£			Three months to31 March 2021unaudited£
Warrants and options charge			(162,159	)		(88,271	)

During the period, no share options were crystallised into cash.

The fair value has been fully recognised within administration expenses, 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
Expected volatility	--	%		29	%
Expected life options (yrs.)	5			5
Expected dividend yield	-			-

7.  EARNINGS PER SHAREBasic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. A reconciliation is set out below:

				Three months to31 March 2022			Three months to31 March 2021
Basic EPS
Gain/(loss) for the period				(667,879	)		(512,518		)
Weighted average number of shares				146,752,359			124,488,017
Gain/(loss) per share (in pence)				(0,46	)		(0.41		)
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
				As at 31 March 2022£			As at 31 March 2021£
Allotted and fully paid
Ordinary shares: 146,930,715 of 20p each (as at 31 March 2021: 134,824,179 of 20p each)				29,386,143			26,964,836

Share issuances in the three months ended 31 March 2022 were as follows:

Nature of issuance	Issue price perOrdinary share	Date of shareissuance	Number of sharesissued	Total Cumulativenumber ofordinary sharesissued
Opening		1 January 2022		118,662,629
Warrant exercise	22 pence	13 January 2022	300,000	146,930,715

9.  RELATED PARTY TRANSACTIONS
During the reporting period the Company received consultancy advice from the following related parties:
Company	Related party	Three months to31 March 2022£	Three months to31 March 2021£
Axial Associates Limited	Mark Child	-	-
Burnbrae Limited	Jim Mellon	6,250	6,250
Promaco Limited	Ian Stalker	11,700	7,575
AMC Geological Advisory Group Inc.	Andrew Cheatle	-	-
10.  SEASONALITY OF THE GROUP’S BUSINESS OPERATIONSThere 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 LLPH&P Advisory Limited	Ewan Leggat+44 (0) 20 3470 0470Andrew Chubb and Nelish Patel+44 (0) 20 7907 8500
Blytheweigh	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.

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.