CHAH-E-ZARD

Reported that to date, 38 holes, totalling 4,150m have been drilled and 38 trenches totalling 3,545m dug. Almost 3,000 drill core samples and 1,409 trench samples were analysed. All of the surface and drill hole data was put into a three dimensional model covering the Southern lobe to determine the near surface resources of gold and silver. The model indicates 160,000 ounces of gold and 1 million ounces of silver.

Announced the results of second phase drilling. Highlights include 6.01 g/t au over 5.0 m from 0 m in hole 5-2. An application will be made to the authorities for a Discovery Certificate covering 160,000 ounces of gold and 1 million ounces of silver. A pre-feasibility study will be undertaken on the near surface oxide resource to determine the economics of a heap leach gold mine.

Persian Gold announced the results of second phase drilling at Chah-e-Zard in Iran. Following a detailed review and modeling of the trench and drill results from both the first phase and this phase of drilling, Persian Gold has exercised the option to acquire 70-percent of the joint venture company which will hold the licence over the Chah-e-Zard gold discovery. In addition, an application will be made to the authorities for a Discovery Certificate covering 160,000 ounces of gold and 1 million ounces of silver and a pre-feasibility study will be undertaken on the near surface oxide resource to determine the economics of a heap leach gold mine.