Ghana Drilling Update

Glencar Mining PLC
26 July 2004


                Glencar Mining plc ('Glencar' or the 'Company')

                             Ghana Drilling Update


Highlights

Glencar is pleased to announce assay results from recent drilling on its Asheba
concession in southwestern Ghana. At the Atinasi North prospect, ore grade
mineralisation has been confirmed over significant widths with best mineralised
intervals intersected including the following:


  • AKDL41 3 metres at 20.5g/t from 9-12m.

  • AKDL46 9 metres at 11.0g/t from 39- 48m.

  • ALDL53 12 metres at 12.1g/t from 42-54m.


In addition, an extensive mineralised quartz-carbonate stockwork has been
intersected in diamond core which, while persistently mineralised, has returned
anomalous but to date mostly sub-economic gold grades.


This phase of drilling at the Atinasi North prospect has encountered significant
thicknesses of high-grade gold mineralisation. However, a considerable amount of
geological and structural interpretation remains to be done to determine the
commercial potential of this prospect.


Drilling at Tanaya, 3 kilometres to the northeast of Atinasi North, did not
encounter any significant, additional ore grade mineralisation. Ongoing work in
the coming months, therefore, will be concentrated in the Atinasi area.



Background

The so-called Atinasi-Tanaya trend is a 1 km wide NE-SW trending zone in the
southern part of the Asheba concession. The zone encompasses the colonial era
Atinasi and Cheriaman mines in the southwest and central parts of the trend
respectively and the Tanaya prospect some 3km to the northeast of Atinasi. At
Atinasi North a number of north-south trending high-grade quartz structures were
exploited by the miners with, some of the workings reaching considerable depth.
Both the Atinasi North and Tanaya prospects have also seen significant levels of
recent artisanal mining activity.


The area is thickly vegetated and deeply oxidised and there is little or no
outcrop. At Atinasi the mapping and sampling has revealed a series of
sub-parallel mineralised quartz vein structures within an approximate
north-south trending zone and a steep westerly dip. The veins are hosted by a
highly altered chlorite schist of basaltic origin.


A first pass shallow reverse circulation drilling programme of 1,200m was
completed at the Atinasi North and Tanaya prospects in December 2003. That
programme intersected significant gold mineralisation in a number of holes and
confirmed the potential for economic levels of mineralisation at Atinasi. All
holes in the first programme were shallow, with a maximum downhole depth of 39m.
Best intersection was 3m at 23g/t in a hole which intersected an extension of
one of the mined mineralised quartz vein structures. Equally significant was the
presence of extensive low grade mineralisation indicating the potential for a
larger tonnage deposit in the area. The recent drilling programme was a combined
reverse circulation and diamond drilling programme to follow up on the results
from the December drilling.




May/June Drill Programme

The drilling was completed during May/June 2004 and aimed at proving the
continuity and extent of the mineralised structures at Atinasi North and Tanaya
prospects. A breakdown of the drilling completed is outlined in Table 1 below.
Drill plan drawings can be viewed on the company website at
www.glencarmining.ie.



Prospect                           Drilling         Boreholes             Metres

Atinasi North                            RC                23              1,430

                                         DD                 7                629

Tanaya                                   RC                 7                490

                                         DD                 1                 50

Table 1 Drilling Summary


All holes at each prospect were inclined at 50 degrees from the horizontal. At
Atinasi North all holes were drilled to a 090 degree azimuth. Most reverse
circulation holes were drilled to 70m depth with selected holes continued by
diamond coring to a maximum depth of 150 metres. Significant assay intervals,
based on a 0.5g/t Au cut-off grade, are listed for Atinasi North and Tanaya
respectively in Tables 2a and 2b below;

Table 2a Atinasi North Intersections

   Hole      Type     Azimuth     Dip          From          To    Interval       Grade

                                                  m           m           M      g/t Au

    34        DD        088       -50             6           7           1        1.10

    34        DD        088       -50            32          33           1       11.45

    34        DD        088       -50            48          50           2        7.35

    34        DD        088       -50            95          96           1        0.59

    34        DD        088       -50           116         117           1        2.25

    34        DD        088       -50           119         120           1        0.60

    35        DD        090       -50            36          42           6        0.72

    35        DD        090       -50            80          81           1        1.45

    36        RC        090       -50            12          18           6        0.87

    41        RC        300       -50             9          12           3       20.50

    43        RC        120       -50             6          12           6        0.77

    44        RC        090       -50             0           3           3        0.56

    45        RC        090       -50            63          66           3        0.53

    46        RC        090       -50             6           9           3        0.61

    46        RC        090       -50            21          24           3        0.88

    46        RC        090       -50            39          48           9       11.00

    47        RC        090       -50             0           3           3        7.36

    47        RC        090       -50            54          57           3        1.73

    48        DD        090       -50            29          30           1        0.62

    48        DD        090       -50            82          83           1        2.53

    48        DD        090       -50            90          91           1        6.10

    48        DD        090       -50           106         107           1        0.87

    48        DD        090       -50           117         118           1        0.88

    49        RC        090       -50            12          18           6        3.38
                                  -50

    52        DD        090       -50           121         122           1        2.28

    52        DD        090       -50           124         126           2        2.53

    52        DD        090       -50           138         139           1        0.69

    53        RC        090       -50            42          54          12       12.08

    53        DD        090       -50            86          87           1        3.60

    55        RC        090       -50            30          33           3        0.55

    55        DD        090       -50            92          93           1       12.40

    55        DD        090       -50           124         125           1        0.53

    57        RC        090       -50             0           3           3        0.68

    57        DD        090       -50            63          66           3        0.74

    57        DD        090       -50            76          78           2        1.35

    63        RC        090       -50            30          33           3        2.02


Atinasi North

The recent drilling confirmed the significant high grade mineralisation
intersected in the December 2003 programme. However it also confirmed the
difficulty in proving continuity of the mineralised structures within this
previously mined area. Most of the higher grade intersections occur within the
central part of the drilled area and represent intersections within the
generally north south trending suite of veins partially mined here during the
colonial era. Our geological interpretation is not completed but highlights of
the programme include:


  • Confirmation of along strike continuity of the earlier (December 2003)
    AKDL20 and AKDL 25 intersections by new boreholes AKDL46, which intersected
    9m @ 11g/t between 39m and 48m depth and AKDL 34 which intersected 2m @ 7.3g
    /t between 48m and 50m depth.

  • A high-grade intersection in AKDL 53 of 12m @12.1g/t between 42m and 54m
    depth within a low-grade envelope.

  • The impact of the old mine excavations and of more recent artisanal
    workings on intersected grades remains difficult to assess. Several zones of
    poor recovery were again intersected in the central part of the prospect. We
    are incorporating as much survey information as possible on the old workings
    into our evolving geological model

  • Interpretation to date suggests that the drilling is at right angles to
    the main mineralised structures and thus the intersections quoted above
    represent close to true mineralised widths.

  • A new potential high-grade zone, the Alabee Zone, some 200m northeast of
    the original drilled area where one intersection of 3m at 20.5g/t in AKDL41
    was obtained between 9m and 12m depth in a reverse circulation hole.

  • The distance between the high-grade intersection in AKDL 41 and the
    southernmost high-grade intersection drilled thus far in AKDL 53 (12m at
    12.1 g/t gold) is approximately 300 metres.


In addition to the high-grade intersections, an extensive mineralised
quartz-carbonate stockwork development within the host metabasaltic rocks, and
associated with the high- grade quartz veins, has been recognised in the diamond
drillcore. The stockwork was intersected in 5 of the 7 diamond cored holes at
Atinasi but was mostly mineralised at sub-economic levels. Gold grades returned
from samples within the stockwork were typically within the range of 0.1g/t to
0.4g/t. Our interpretation to date shows 2 parallel, approximately north-south
trending, stockwork zones with a steep westerly dip. We regard the stockwork as
a potential host for a larger tonnage orebody and believe that its accurate
modelling is an important component in directing future drilling at the
prospect. We are looking especially at the potential development of this style
of stockwork within the dioritic and granitic bodies immediately to the north
and the south of the drilled zone respectively.


Four short inclined reverse circulation drillholes were drilled in a
northwest-southeast fenceline across a new zone on the northeast fringe of the
Atinasi North prospect. Drilling was extended into this new zone, called the
Alabee Zone, based on anomalous soil geochemistry coincident with mapped
auriferous quartz float. Highest intercept was 3m at 20.5g/t at 9-12m downhole
in AKDL41, a 39m deep reverse circulation borehole inclined to the northwest at
50 degrees. While 21m of this hole intercepted anomalous gold levels, this
high-grade intersection was the only ore grade intercept in the hole. Hole
AKDL43 at the southeast end of the fenceline returned an average grade of 0.26g/
t over its entire 42m length but intersected no high-grade mineralisation.



Table 2b Tanaya intersections


Hole            Hole                 Azimuth        Dip        From      To        Interval          Grade
No.             Type

                                                                  m       m               m         Au g/t

63                RC                     310        050          30      33               3           2.02

Seven reverse circulation drillholes were drilled at Tanaya, one of which was
deepened with a diamond core tail. The cursory shallow drilling programme here
in December had intersected reasonably promising results with several short ore
grade intersections from the six reverse circulation drillholes drilled to
downhole depths of 39m each. For example AKDL 27 had returned an intersection of
9m @1.57g/t including 3m @ 4.18g/t. This borehole was drilled in the immediate
vicinity of artisanal workings which exploited a southeasterly dipping quartz
vein. The recent drilling was aimed at testing the continuity of the vein
structure along strike and down-dip. Results were disappointing and no further
drilling is planned at Tanaya in the near future. However, future work at Tanaya
will depend on the results of our evaluation and interpretation of the
Atinasi-Tanaya trend as a whole over the coming months.



Summary


The recent phase of drilling at Asheba has encountered significant thicknesses
of high- grade gold mineralisation at Atinasi North. The newly recognised and
extensively developed quartz-carbonate stockwork presents a target for a larger
tonnage orebody. The successful completion of the current structural and
lithological interpretation work on both the high-grade zone and the stockwork
is necessary before we can move on to commence resource definition drilling at
Atinasi.

For further information, contact


Mr. Hugh McCullough

Chief Executive, Glencar

Tel: [phone]


26th July 2004.


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