Drilling Report

Persian Gold PLC
16 January 2007

                                Drilling Update



•        Extensive gold mineralisation confirmed at Chah-e-Zard prospect in
         central Iran.

•        Work underway to further define the target.

•        Excellent support from local partners and the Iranian authorities.



Persian Gold (AIM:PNG), the Irish based gold explorer, is pleased to update
shareholders on results from its 16 hole reconnaissance drilling programme at
Chah-e-Zard near Yazd in Central Iran.  Persian Gold holds a 70% interest in the
project. Table 1 below shows a summary of results.



Gold results from the 16 hole programme suggest a high grade gold system in the
southeast with lower grades in the west and northwest.  Only three of the 16
holes did not contain gold anomalies.  The silver results, although incomplete,
appear to mirror the gold results.



The southernmost holes (1 and 3) contained high grade mineralisation including
an intersection of 122m at 1.95 g/t gold and 23.8 g/t silver.  Holes 1 and 3 are
125 metres apart.  Holes to the west and northwest (4-13) carry anomalies of
less than 1 g/t gold.


Although more drilling is required, these results appear to indicate that there
are at least two mineralised systems in the area.  Planning is underway for the
second phase of drilling which is likely to take place in the Spring.



John Teeling, Chairman commented:

'The initial phase of drilling the large gold anomaly at Chah-e-Zard is
producing promising results.  The high grades and thick mineralisation in the
southeast warrant immediate follow up drilling while grades in the north and
west indicate that gold and silver are present but at lower grades.



Although final conclusions cannot be drawn from such a small drill programme,
every drill result adds to our knowledge of the system.  The first phase of
drilling has improved our understanding and we expect to commence a further
drilling phase in the near future to further define the target.'




Table 1: Drilling results from Chah-e-Zard
Hole          Depth from       Depth to     Interval     Silver grade          Gold grade
ZDH-1         138m             178m         40m          49.3 g/t average      1.24 g/t average
                                   of which 16m          92.2 g/t              2.37 g/t
ZDH-2         45m              85m          40m                                0.43 g/t
ZDH-3         9m               23m          14m                                1.67 g/t
              102m             224m         122m         23.8 g/t              1.95 g/t
                                   of which 30m          84.8 g/t
                                        and 10m                                13.60 g/t
                                        and 6m                                 5.19 g/t
ZDH-4         50m              68m          18m                                0.66 g/t
ZDH-6         18m              56m          38m                                0.15 g/t
ZDH-7         29m              73m          44m                                0.14 g/t
ZDH-8         33m              43m          10m          7.3 g/t
              214m             230m         16m          30.0 g/t              0.18 g/t
ZDH-9         51m              55m          4m                                 0.53 g/t
              63m              69m          6m                                 0.52 g/t
              71m              107m         36m          22.1 g/t
ZDH-10        88m              106m         18m                                0.15 g/t
ZDH-11        62m              98m          36m                                0.20 g/t
ZDH-13        108m             116m         8m                                 0.47 g/t
ZDH-14        86m              96m          10m                                0.24 g/t
              118m             150m         32m                                0.41 g/t
ZDH-16        18m              32m          14m                                0.21 g/t

No gold was encountered in holes 5, 12 and 15.

Gold results from holes 1-6 were previously reported on 29 November 2006 as were
the silver results from hole 1.



Information in this announcement relating to exploration results has been
reviewed by Mr. Babakhani, an independent geologist and consultant to Persian
Gold, who is a qualified person under AIM guidelines.





For further information please contact:
Persian Gold Plc

John Teeling                                         [phone]
College Hill

Paddy Blewer                                         [phone]
Nick Elwes                                           [phone]
Corporate Synergy

Ian Rice                                             [phone]




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