Scheme approved in High Court

Conroy Diamonds & Gold PLC
26 July 2004


                          CONROY DIAMONDS AND GOLD PLC
                       
                       CONROY GRANTED HIGH COURT APPROVAL
                       FOR DE-MERGER OF DIAMOND INTERESTS

AIM-listed Conroy Diamonds and Gold plc (CDG) says the High Court in Ireland has
today sanctioned the Scheme of Arrangement to de-merge the Company's diamond
interests in Finland into a new entity, Karelian Diamond Resources plc
(Karelian). The Company will now proceed to implement the Scheme and it is
intended that Karelian apply for admission of its shares to AIM in due course.

Under the terms of the Scheme CDG shareholders will receive one ordinary
fully-paid Karelian share for every six CDG shares held on the record date of
July 23, 2004.

As described in the Circular of June 15, 2004 to CDG shareholders, in a separate
but linked transaction Karelian will also acquire, in exchange for fully-paid
shares, the diamond interests of unlisted Conroy plc which are also located in
Finland.

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Further Information:

Professor Richard Conroy, Chairman
Conroy Diamonds and Gold Plc. Tel: [phone]

Ron Marshman/John Greenhalgh
City of London PR Limited. Tel: [phone]

Visit website at: www.conroydiamondsandgold.com



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